AXA Sunlife Cashbuilder should i cash it in?

JMW77
JMW77 Posts: 825 Forumite
First Post First Anniversary Combo Breaker
in Savings & investments
I have paid about £18,000 into the cashbuilder and i am 9 years into the policy with 6 years to go having paid

Year1 £100 a month
Year2 £120
Year3 £140
year4 £160
Year5 £180
Year 6 onwards £200

so i work out i have paid in over £18,000 read lots of other posts but has anyone cashed theirs in or anyone prepared to wait till maturity thinking of getting a valuaton this week !

Anyone have any advice ?

Comments

  • pizzagirl
    pizzagirl Posts: 356 Forumite
    wow, 18 grand into one of these suspect savings plan seeems way excesive. Wouldn't you have been better off investing in a proper stockmarket investement. Can you stop paying into it without penalty?
  • I_luv_cats
    I_luv_cats Posts: 14,441 Forumite
    First Anniversary Name Dropper First Post
    You need to read the small print as you may be penalised if you cash it in early.

    Can you transfer it or sell it or lower your payments if you don't want it anymore??

    Maybe as talking about this kind of money to speak to an IFA
  • dunstonh
    dunstonh Posts: 116,306 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Wouldn't you have been better off investing in a proper stockmarket investement.

    Yes. Even when this one was taken out it was already very obsolete. However, that is why AXA sold these direct as advisers had ceased years earlier as they couldnt be justified as good advice. Direct sales dont involve an adviser so there is no requirement for them to offer decent products.

    A cost analysis will need to be done as well as consideration given to the what will be done with the money in the future. It could give a keep, paid up or surrender outcome but without figures and future objectives its not possible to say.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • baby_boomer
    baby_boomer Posts: 3,883 Forumite
    First Post First Anniversary Combo Breaker
    edited 25 April 2009 at 5:11PM
    I_luv_cats wrote: »
    you may be penalised if you cash it in early.
    You will also be penalised by the poor returns and high charges if you wait to the end :(. It's a no win situation.

    As dunstonh says - you need to have a plan for the money if/when you withdraw it, since cash earns so little at the moment.
  • JMW77
    JMW77 Posts: 825 Forumite
    First Post First Anniversary Combo Breaker
    I agree its an no win situation if i knew then what i know now !

    But at the time it seemed ok i knew i could save that amount, and i have built up a sizable sum which is more than i can do without having a plan so still dont know what to do !

    Thought there would be more people on here who had them as they were really common!
  • baby_boomer
    baby_boomer Posts: 3,883 Forumite
    First Post First Anniversary Combo Breaker
    edited 25 April 2009 at 7:20PM
    JMW77 wrote: »
    Thought there would be more people on here who had them as they were really common!

    There have been loads but many have now cashed them in.

    Enjoy your research when you click here on the link to this MSA thread
  • fabforty
    fabforty Posts: 809 Forumite
    I had one of these policies - which I have now cashed in. I paid £20 a month in September 2000, rising to £40. I was recently quoted a surrender value of £3600, which was slightly less than I paid in, but which I am accepting - see earlier post for deatils, reasons etc.
    My advice would be to call Axa and ask for a surrender value - there's no harm in asking and they willtell you straight wawy, followed by written confirmation - then decide what to do. If it's anywhere near the £18000, I would seriously consider taking the money and running. The thing to remember is that valuation can go up as well as down, and there's no guarantee that you will get back what you have paid in - even if you wait until it matures. If you do decide to stick with it, then call Axa at regular intervals (2/3 times a year) to get a surrender value. Then if it starts to move dramatically in either direction, you can bail out at the right time, as opposed to waiting until it has matured, only to discover that it's not worth a bean. If you put the £100 a month into an ISA, and find a home for the £18000 (there are still a few good long term, fixed rate savings accounts, which should suit you as you are clearly prepared to leave your money untouched) you will probably be better off in the long run.
  • JMW77
    JMW77 Posts: 825 Forumite
    First Post First Anniversary Combo Breaker
    Thanks fabforty i will get a valuation on monday my OH has one of these as well but pays £100 a month into it so we will get them both valued and i will cash in if its close to what i've paid in.
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