We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Axa Sunlife
Options
Comments
-
ashley0611 wrote:There are no penalties - the figure they quote is the figure you receive.
In with profits endowments more of the charges are taken early on, so the "performance" in the second half could be better. Those who cash in early are usually deprived of some of their asset share of the with profits fund - even though this is not explicitly revealed to investors.
Insurers, dontcha just luv 'em ?
What I'd really like to see is someone writing to Axa to ask for a future projection on their policy assuming the Axa WP fund grows @ 6% (like the sort of mortgage endowment projection "shortfall letters" that most households have received).
This figure will not be the same as the surrender value + 2.9% pa growth ( = 6% minus 3.1% charges).
Armed with this information we might be able to categorically say whether or not it is best to cash in.
Axa IMHO designed this policy to ensure that more people cashed in early than on the average endowment :mad:. Early encashment does help fund profits and even the investment returns for those who decide to hang on.
But with the 3.1% charges (before the cost of life cover), and the nature of a WP fund, there's probably not much hope for any investors staying put even with the benefit of others encashing early.0 -
Sorry to bump....just wanted to ask how long people waited for their paperwork and surrender forms?
Still had nothing through yet, nearly a week now although not if you only count business days.Herman - MP for all!0 -
I haven't received my paperwork yet, but I only phoned the latter part of last week.Be ALERT - The world needs more LERTS0
-
I phoned Thursday and 1 came Saturday - the other one still hadnt arrived by today so I phoned them back and the lady said they had only sent the one out and she would send out the other recorded delivery.Tin can banky - 3/4 full £1 and £2, Quidco January £19.49, Boots points 2543, Tesco Club Card 2763, Piggy Points 8400
-
I too am in this boat and didnt actually realise that this cash builder plan was so bad since I took one up before I knew about other options I had that were avaliable to me. I have two policies, both of which were started in 2003 so they have only been going for just under 3 years. The amounts I started paying on each were £50 and £10 which have now grown to £80 and £14 respectively. I received a quote for the first one and have been given a figure of £787.38 which includes my bonus of £21.21. How can this be right? As I must have put in at least £2000 in the first one. I've been told that I cant surrender the 2nd one at the mo either.
HELP!Any advice appreciated...
Current Debt Owed To Family: [STRIKE]£12,575[/STRIKE] £9,000 :wall:Estimated Debt Free... [STRIKE]Dec 2012[/STRIKE] Aug 2012
:xmassmileChristmas 2010 Sealed Pot Challenge #477 :xmassmile0 -
Can you give me the exact starting dates of both policies so I can do the sums?
In theory your timing was perfect as you started right at the bottom of the +82% bull market in shares - what a shame you went for an expensive with profits endowment, which won't reflect that growth.
An equity income unit trust would have left you quids in.
Can you also say if yours was the "Cash bonus" policy - and what, if any, cash was paid out after one year.
Does anyone know if such cash bonuses after one year were paid out net of basic rate tax, or did you get the amount gross and have to declare it to the taxman?
I mean. Why would anyone create an investment where you pay money in but get money out after one year at your top rate of income tax:mad: .
0 -
I will do that tonight as unfortunately all that stuff is at home. I have since spoken to the AXA life call centre who have given me an address to write to where I can try and convince them they should refund me due to what their misadvertsing in 2004. Not sure if this will work but figure its worth a try if nothing else...Current Debt Owed To Family: [STRIKE]£12,575[/STRIKE] £9,000 :wall:Estimated Debt Free... [STRIKE]Dec 2012[/STRIKE] Aug 2012
:xmassmileChristmas 2010 Sealed Pot Challenge #477 :xmassmile0 -
Ok, hope this is enough info:
Policy 1:
Started on 18/02/03 at £50, increasing by £10 every year until 18/02/08
Was paid half the 1st yrs premium back after a year: £300
Current surrender value: £787.38
Guaranteed sum assured: £11,070
What Sun Life thinks your policy could return if the underlying fund grew at 6% pa: £19,900
Policy 2:
Started on 14/11/03 at £10, increasing by £2 every year until 14/11/08
Was paid half the 1st yrs premium back after a year: £60
Current surrender value: Not able to until 3 years have passed ie. This Nov
Guaranteed sum assured: £2,214
What Sun Life thinks your policy could return if the underlying fund grew at 6% pa: £4,020
Any help or advice greatly appreciated!Current Debt Owed To Family: [STRIKE]£12,575[/STRIKE] £9,000 :wall:Estimated Debt Free... [STRIKE]Dec 2012[/STRIKE] Aug 2012
:xmassmileChristmas 2010 Sealed Pot Challenge #477 :xmassmile0 -
What Sun Life thinks your policy could return if the underlying fund grew at 6% pa: £19,900
6%... you will be lucky. If they gave you a 4% figure, look at just under that as likely potential.
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.0 -
For Gambit
Policy 2 - it would be worth continuing to pay into it until November in order to get back something from Axa.
Policy 1 - If you invest the £787 and all future premiums into a Cash ISA @ 4% you will have saved £18,927 by February 2015. You take the risk that interest rates could fall, although you will be able to get 4.75% at the moment, and that ISAs could be abolished after the review in 2010. Also don't forget that you are losing £11k of life cover when you cancel.
This £18,927 compares to the £19,900 quoted by Axa IF the Axa fund grows @ 6% over 15 years. You would have got more than £19,900 in a Cash ISA @ 3% if you'd invested in that from the beginning (that's because of Axa's 3.1% pa charges).
If you'd invested in Cash ISAs from the beginning @ 4% you'd be expecting £21,450 after 15 years.
If dh is right and the Axa fund only grows @ 4.1% from now (giving you a 1% return after charges) then your Axa policy might only return approximately £16,500 = £15,682 + a few £100s that they are probably deducting from your current surrender value in order to compensate themselves for the loss of their future charges. This is what I meant in an earlier post about "hidden" surrender penalties when you cash in a WP endowment early - MSE link
By comparison 4.1% growth (1% to you) on the Axa fund from start to finish would yield £17,009 (compared to £15,900 paid in and deducting the £300 cash payout at the end of year 1).
Carol Smillie is not going to be a popular girl in a decade's time.
P.S. It would be very interesting to know the performance on the underlying Axa fund was in 2005, a stunning investment year.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards