Axa Sunlife

BONJOEY

recieved my letter today, orry guys no luck what so ever,
basically saying i wasnt mislead, so i have been paying in 10 pound up to 20 pound since oct 2001 to now, and my surrender value is 584 pound!!
im gonna cash in, im not letting them make any more money out of me!!!

feel gutted, ill be 256 down!!

ReportInvestor

Sorry to hear this. Thanks for trying and keeping us informed.

BONJOEY

thanks reportinvester, thanks for all the info and help...

at least ill have a bit of money to put in a isa now! xx

myrtle_2

sorry too BJ, when did you take out your policy again?..

BONJOEY

i took it out oct 2001, after reading back a few pages its made me think, shall i wait a few more months? would i be better off,

i cant believe it i only phoned up yesterday for the surrender value, i have recieved the forms today!!

Super

Super wrote:

By chance I stumbled across this thread and looks like I am another of the Bonus Cashbuilder plus victims….

I started paying 50 quid in 28/5/99. Received half back (300 quid) the same year.
I am now paying 100 quid and have done so since 28/5/04

I calculate that I have paid in 7200 to this ‘investment’

I have a guaranteed payout on maturity of 11,070
Going by the generous estimates in the advertising material at that time, I would be in line for 18,900 @5%; 21,600 @7.5%; 24,700 @10%. I have asked them to project 6% as of now and this will be sent to me by post.

Taking the advice from this forum, I called them and details given are as follows:

Surrender Value 5,979 plus 291 bonus = 6,259
Current bonus rate is 1.25%.
Last bonus was 157.60 and I have apparently amassed 1695 in bonuses so far.

I don’t completely understand all this but it seems I should be cashing all of this in? As my policy was 1999, is there any point in writing to them along the lines of the 2002/2004 policy holders?

Seems like I have lost about a grand though

received my maturity illustration letter today,

4% growth
guaranteed cash sum 11070
compoud bonuses now 1695
illustarted future bonuses 3135
total 15900

8% growth
guaranteed cash sum 11070
compoud bonuses now 1695
illustarted future bonuses 6735
total 19500

If I continue, I would have paid in by the end of the term, 16200. What a waste of 15 years that would be!!!!

ReportInvestor

Super wrote:

If I continue, I would have paid in by the end of the term, 16200. What a waste of 15 years that would be!!!!

Thanks very much for all the info in your post above, it's exactly what is needed.

In fact you would have effectively paid in 15,900 (counting the £300 "bonus") that you got at then end of 12 months.

It's actually more complicated than that because that bonus was subject to income tax - even though they were paying you back your own money .

And the good news is that you similarly miscalculated the amount you have effectively paid in i.e. it's £6,900 (+ whatever tax you paid on that £300) not £7,200. The £6,900 compares to the current surrender value of £6,259.

The most important thing to note is that 4% fund growth would result in them paying you your money back exactly after hanging onto some of it for 15 years :eek:

What an "investment" .

the_optimist

Phew, am I glad I found this thread - yes, you've guessed it, another one who started to 'save' with AXA in 1998, paid in so far £1580.
Apart from the fear that I might not get as much as I thought, I could also do without paying any more £20 every months. So I've just written to them and hope I don't lose out on what i've paid in :undecided

ReportInvestor

Not forgetting that Super would be losing life assurance should he cancel the Axa policy, then the following sum is relevant:

£6,259 surrender value invested for 7 years 7 m,onths @ 4% (monthly interest = approx 4.1% annual equivalent) = £8,445.

£100 pm future contributions invested for 7 years 7 months @ 4% (monthly interest = approx 4.1% annual equivalent) = £10,645

Total @ 4% growth invested if all money & future contributions are invested by Super himself = £19,090
Expected return @ 4% growth from Axa = £15,900

Super could get £6K into mini-cash ISAs by April 2007.
For the monthly £100 there are some briliant regular savers available - and when these run out the 2008/9 mini-cash ISA allowance could kick in.

Bear in mind that interest rates can fall and/or mini-cash ISAs could be withdrawn.

ReportInvestor

the_optimist wrote:

Phew, am I glad I found this thread - yes, you've guessed it, another one who started to 'save' with AXA in 1998, paid in so far £1580.
Apart from the fear that I might not get as much as I thought, I could also do without paying any more £20 every months. So I've just written to them and hope I don't lose out on what i've paid in :undecided

I'm "off" for a few days but if people want to ask Axa for the details that Super has got from them, then they will know their position more securely. You'll just have to wait a few days for me to put it into the spreadsheet.

There's no need to take a decision with less information than Super now has.

There will be differences between when policies were started, the amounts paid in (this will affect the charges) and whether you took the "bonus" of 50% of contributions after 12 months.

Although the general trend is pretty clear .

So key information needed =
Start date.
Start amount.
Current monthly contributions.
Did you take 50% of contributions back at end of year 1 as a "bonus"?
Current surrender value.
Projected maturity values based on 4%/6%/8% growth from today in the underlying with profits fund.