Axa Sun Life

loubie_lou · 12 July 2005 at 1:36PM

Hi,
I don't know if this is the right board to post this on, but i'll have a go anyway!

I opened up an Axa Sun Life Policy (5 Yrs Ago in Feb). The one which Carol Smilee was advertising (don't think that would be much help really!!) and the one where you get a lump sum after 15 years.

The thing is i'm in desperate need of a bit of spare cash and i'm thinking about cashing it in. It says on the policy that I may get less than I've actually paid in but i'm prepared to sacrifice that. It's just under a grand that i've paid in. Would anyone else do this if they had to? I'm only 23 and I don't need life assurance just yet!

Any advice would be appreciated

payless · 12 July 2005 at 1:45PM

Have you actually found out how much its worth ?

loubie_lou · 12 July 2005 at 4:31PM

Its just over £900 and they take away some costs such as admin etc etc can't remember precisely!

payless · 12 July 2005 at 4:49PM

I mean have you actually requested an up to date surrender value?

have a look at http://business.timesonline.co.uk/printFriendly/0,,2020-9069-1411382-9069,00.html

does this apply to you ?

loubie_lou · 13 July 2005 at 1:14PM

No it doesn't! I started my policy in Feb 2000. I shall have to ring up AXA and ask what the value is now. They are not helpful at all tbh. Some call centre in the middle of nowhere last time i rang up! Thanks for pointing it out tho....

ReportInvestor · 13 July 2005 at 2:18PM

Hi loubie_lou.

If Carol Smilie was involved then I'm afraid it will have been

This rubbish policy - Click on this Investors' Association link

Given the scale of the charges to maturity - 3.1% pa estimated - and poor returns since 2000 you have little chance of getting back the money you have invested IMHO.

The product was probably unsuitable for your situation [ISAs would have been better for tax relief and flexibility] but the way it was marketed ensured that you have no recourse re misselling in spite of the 20% pa increase in premiums pa in the first five years - almost designed to trap the unwary in our rapidly changing world.

We have campaigned against celebrity advertising in general and this awful product in particular. The FSA fine highlighted by payless was on a short term advertising technicality - not because of general misselling

Did you see it in the Express, Sun, Mail or did you buy it because it was advertised in a building society?

Sorry to be the bearer of all round bad tidings

dunstonh · 13 July 2005 at 3:04PM

I have posted about this type of policy on this website in the past. Its a disgrace but these TV adverts in the afternoon continue.

I always laugh at the comment "no insurance salesman will call". Of course they wont as any half decent advisor would tell you to avoid these policies like the plague. They are playing on the bad image that the industry by making them sound really good but in reality, they are making matters worse by selling you a completely pointless policy.

In the old days of boom and bust, these types of policies were common. They targetted the low end of the market and on the whole, they outperformed building societies very nicely (although not as good as "proper investments). That was good enough for the market and knowledge at the time. Although I cannot give specific advice in the open here, I would suggest that it is very unlikely that even if you keep it until maturity, you will get back what you paid in.

loubie_lou · 13 July 2005 at 3:19PM

Should I cash it now before i waste another 2.5k (putting in 20 a month over the next 10 years - when it expires) Thanks for your comments guys, I thought it would a nice little bonus of a couple of grand in 10 years time.

Have really wasted all that money?

I've put nearly a grand it, what do you think i'm likely to get back? Don't worry if no one knows!

loubie_lou · 13 July 2005 at 3:23PM

ReportInvestor - I saw it it a paper, although I can't remember which one!

payless · 13 July 2005 at 5:05PM

ReportInvestor wrote:

We have campaigned against celebrity advertising in general and this awful product in particular. The FSA fine highlighted by payless was on a short term advertising technicality - not because of general misselling

agree, but wondered if it gave a glimmer of hope ( not sure if they have actually mailed everyone yet) and hoped it would encourage a discussion about the poor value ( OP still not sure of surrender value) and that " The advertisements did not provide customers with sufficient information about how the products worked or the risks involved"

ReportInvestor · 13 July 2005 at 5:45PM

loubie_lou should write to AXA for a current surrender value ASAP

If she has made 5 months payments of £24 from February 2005 then she will have paid in £970 to date - with £2252 still to pay (9 years 7 months @ £24 pm).

Loubie - have you got your latest statement? It would be really useful for us to know:

1) Sum assured
2) Total declared bonuses to date
3) Any bonus declared last year
4) Statement date i.e. to year end mm/yyyy

Axa Sun Life

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