Axa Sunlife

chatty123

FOR REPORTINVESTOR IS THIS WHAT YOU HAVE BEEN ASKING FOR....i have 2 policies, one taken out 1998 for £30 increasing to £60 a month. the second one taken out 2000 for £10 increasing to £20. i called axa and this is the maturity projection.
ASSUMED RATE GROWTH


POLICY 1 ...... 4%pa 8%pa

guaranteed cash sum £6622 £6622
compound bonus as of now £1157 £1157
illustrated future bonuses £1651 £3621
__________________________
TOTAL £9430 £11400


asked for surrender value --£4199.57


TOTAL I HAVE PAID TO DATE ==£5777
TOTAL I WOULD PAY AT THE END OF 15 YEARS WOULD BE ==£9720

POLICY 2 ALL SIMILAR AND THE SURRENDER VALUE AS OF TODAY WOULD BE A LOSS OF £414..
HAVE DECIDED TO SURRENDER AND WILL LOOSE NEARLY £2000 IN TOTAL BUT TRYING TO GET ANY OF THE CALL CENTRE STAFF IN INDIA TO UNDERSTAND YOU AND ANSWER ANY QUESTIONS IS DAMNED HARD WORK.

marc_lrfc

HAVE DECIDED TO SURRENDER AND WILL LOOSE NEARLY £2000 IN TOTAL BUT TRYING TO GET ANY OF THE CALL CENTRE STAFF IN INDIA TO UNDERSTAND YOU AND ANSWER ANY QUESTIONS IS DAMNED HARD WORK.[/QUOTE]
Well looks like you had more luck than me try'ing to explain yourself with the indian call centre.
my policy started same year as you starting at £10 so guess im in same boat, seriously looking at taking my money and running now.

chatty123

i have dithered over this decision as its a lot of money to throw away. at the time i took these out the returns previously had been good. now of course we have the isa's that are tax free so that is the direction i will be going to..

ReportInvestor

Thanks chatty: Excellent feedback & really useful for all concerned.

chatty123 wrote:

POLICY 1 - If it grows @ 4% from today = £9430
TOTAL I WOULD PAY AT THE END OF 15 YEARS WOULD BE ==£9720

I shall do some more sums on this tonight, but that says most of what we need to know.

How can a 15 year regular savings investment policy only be on course to pay back the money you have put in :eek: ? It's hardly credible.

With not enough in equities and high charges to boot, neither I nor the IFAs think it's likely to do much better than 5% growth to maturity.

chatty123 wrote:

asked for surrender value --£4199.57

TOTAL I HAVE PAID TO DATE ==£5777

Using cash ISAs you have a good chance of turning £4,200 into that £5,777. Start by investing £3K into the Halifax 5.3% 4 year fixed rate ISA. If you can get 5% tax free on £4,200 over 7 years you will end up with £5,900.

THEN you can invest the future premiums that would have gone into the Axa policy and regard any money you make on them over 7 years as an improvement on what would probably have happened had you continued to put the money into Axa.

Ipswich BS 8.25% Regular Saver anyone?

ReportInvestor

chatty123 wrote:

POLICY 1 [if it grows from today at 8%pa] - £11400.

If this fanciful 8% growth were to materialise then the overall return on the policy from 1998=2013 would be 2.25%.

5% pa growth from the outset (1998) would have yielded £14K .

chatty123 wrote:

TOTAL I HAVE PAID TO DATE ==£5777
TOTAL I WOULD PAY AT THE END OF 15 YEARS WOULD BE ==£9720.

The second total payments figure is correct for policy 1.
I calculate that the maximum you could have paid to September 2006 on policy 1 (even starting in January 1998 ) would have been £5,220. So I assume that on this figure you have mixed in your other policy - but not on the second one - making calculations invalid .

Chatty, could you please check and confirm?

All I need are separated figures (& start or finish month) for the £30/£60 policy.

Meanwhile it would be unwise for others to act on the figures above

BONJOEY

i recieved a letter saying they are looking at the litrature i recieved to join the cash builder plus, one more week and ill find out!

dont think the outcome will be good!

Willie147

Hi,
I`m new and this is my first post so please be gentle.

Just wanna say great site and I love the advice Martin gives on TV and Radio and everyone else gives on this site.

Regarding this thread, I phoned AXA on the 3rd and asked for a surrender value for my policy along with my wifes.

We both started them in Feb 2001 with £25 per month increasing by £5 per year so now pay £50 per month.

So far we have each invested £2550 and took the £150 cash back (half our first years savings) at the end of the first year.

We received our surrender values today of £1869 each which I though was pretty grim cos on my last statement I seem to remember bonuses in excess of £450

I`m just off the phone to them and man, that was hard work. As said previously it was an Indian call centre.
I asked why I was getting so little back compared to what I had invested, and she said it was just the way the endowment policy works.
It took me 15 minutes to explain to her that I wanted an itemised breakdown of how they come to the figure I`m receiving, but even then I`m not gonna hold my breathe.

Doe anyone else think the figure I`m gonna receive is correct?

I also asked for a projected figure. I then asked her if the projected figure included the 3.1% admin charge and she said there was no admin charge!!!!!

chatty123

hi Report investor

thank you for replies in this matter. The previous total payment included the bonuses sorry...
i've re-done my figures so here is the revised sum...
First payment of £30 paid on 26 october 1998.
Toatal paid excluding bonuses as of August 2006 is £4620

I have received the surrender policy for policy 2 but after 3 phone calls i am still waiting for the documents for policy 1. This company is atrocious, and no offence to the indian call staff, but it is so damned difficult to get them to understand oneself when i tell them that i am still waiting for documents. thet just rattle on quoting figures to me.So frustrating.

chatty123

.
Also shown in my 2005 bonus statement is "reorganisation bonus" of 15% on policy and 10% on policy 2.. this is described as--- I quote
" following our financial reorganisation in 2001 we introduced reorganisation bonuses.We may pay these to you if you had an AXA Sun Life plan before 1 April 2001. We may add these bonuses to the value of your plan if you die or when your policy matures or is cashed in.Any reorganisation bonus will be payable as a percentage of the reversionary and interim bonuses. What you would get back depends on what we call the "term gone" which is the number of years your plan has been with the With Profits Fund. First you take the year you cashed in,then you take away the year of your entry into the with profits fund. So, if you started in 1999 and you cashed in your plan this year, the "term gone" would be 7 years.We pay reorganisation bonuses independently of any terminal bonuses that we may pay on your plan,.
SO WHEN THIS EXTRA IS NOT ADDED ONTO OUR SURRENDER VALUE HOW ON EARTH CAN WE GET THE INDIAN CALL STAFF TO UNDERSTAND US WHEN WE ENQUIRE ABOUT IT. HELP !!!!! SO FRUSTRATING.

ReportInvestor

Willie147 wrote:

I also asked for a projected figure. I then asked her if the projected figure included the 3.1% admin charge and she said there was no admin charge!!!!!

Hi Willie & welcome to the site ,

Pushed for time at the mo to get back to you on specifics, but have a rec for the funniest post of the day :rotfl:

The projected figure will include the charges.