15yr AXA Savings Plan I need to cash it in?

sistersis

Hi Have a 15 yr policy currently paying £80 a month also have another at £70 a month. Was going to use to pay off mortgage and help the kids out when older.
Need to raise cash for central heating sorting out and a car that works! so was going to cash in the policy that I pay £80 which has been running for 6 years.
Current surrender value £4495.00 and a few pennies but was hoping to get more.
Would you suggeset cashing in or trying to sell it on
Help

Currenetly 125k mortgage but no debts
3 children and skint!

jobbingmusician

Definitely try to sell it rather than cashing it in - do you have a written offer of what you would be paid for it, if you did cash it in? - my understanding is that you normally get offered PEANUTS!!! YOu have referred to 'surrender value' so it may be that they have actually told you. If not, you could certainly find out by asking them (if you don't know already), nothing lost by doing that.

In your situation I would ask on this board and Google about selling it on (sorry that I can't help you there). Actually I would do everything possible (saving as much as possible through OS economies, considering a 2nd job) NOT to cash in this policy, as the surrender value is so low (assuming this is actual surrender value) - you have paid in £5740 (£80 x 12 x 6) - do you really want to give them £1250 plus the interest your money would have earned if you'd invested it another way?

Sorry, this looks a bit incoherent, but it makes me SO cross that long term policies have such low cash in values! :mad:

dunstonh

You cannot sell it. It is not a mortgage endowment but a savings one. the bonus structure is different.

Sorry, this looks a bit incoherent, but it makes me SO cross that long term policies have such low cash in values!

This sort of product was obsolete from around 1998. IFAs had generally stopped recommending it at that point. Only way to get one in 2000 is to buy one direct (i.e. Carol Smillie advert) or see a tied agent that doesnt care if he is mis-selling or not.

To be honest, a premium of £50pm or more should have been directed to a PEP/ISA from around 1995 onwards. If it was an advised sale, it would be worth checking the advice documentation to see why an ISA was not recommended. If there is no mention of why, then you could consider putting in a complaint. If you bought it yourself, then thats the risk when you do it yourself.

These AXA plans are awful.

sistersis

Hi Thanks that really helps me.
It was a slow starter one over 5 years then 80 pounds thereon
I Will work out what i've paid but may hold back on selling it doh!
Just wish life could be easier!!

sistersis

Ok Determined not to sell AXA 15yr policy will budget like mad and save the opney and Freeze............Not going to give my money away like that so shall hang on to it
Cheers for the info - So glad this site is here when you don;t know who to turn to.
Many thanks savers
Sistersis

EdInvestor

Hi sistersis,

Before you make any decisions, perhaps you could post a bit more info about this policy.

What fund is it invested in?

Is it in the With profits fund?

If so please post the following:

Guaranteed sum assured
Bonuses so far


If not, do you have any projections for its maturity value ( usually @4%,6% etc)?

Please post them as well.

whiteflag_3

sistersis wrote:

Ok Determined not to sell AXA 15yr policy will budget like mad and save the opney and Freeze............Not going to give my money away like that so shall hang on to it
Cheers for the info - So glad this site is here when you don;t know who to turn to.
Many thanks savers
Sistersis

Sorry , have I missed something. Why arent you going to cash it in? Thought you needed the cash for sorting the central heating and car. ?