Axa Sunlife

myrtle_2

thanks to all for your help with Axa, accepted 1%, have now got my money back, it took about 1 week and I've paid off a debt and am moving on...good luck to others in the same situation, do write and get your money back

Ellieseleven

I have now received a letter from Axa in response to my further letter asking for projected maturity forecasts based on 4 & 8% The figures that Axa have returned are based on 3 & 7%

At 3% future bonuses £1893 Total return £9860

At 7% future bonuses £3833 Total return £11800


The surrender value is £4814.37 plus bonuses £255

I started paying into this policy in Feb 1998, my starting amount was £30 which has now risen to £60 per month. I did take the 50% cashback after the first 12 months (£180)

I have paid in to date £5280 and accrued bonuses of £1345.77 - the 2005 bonus was 98.37

I have a guaranteed minimum sum of £6622 and life cover of £7290

On the original illustration it shows projected growth at 5% 12,200 at 7% 13,200 and at 10% 14,500

My terminal bonus shows a return of 70% on the 2005 bonus statement

ReportInvestor

I'll have a look at this by Sunday, Ellie.

In the meantime it is rather significant that Axa has moved down to

3%/5%/7%
low/medium/high from the previous
4%/6%/8%
quoted to others asking the same thing just weeks ago.

These are projected figures that I believe the company would have to justify to the FSA, based on the strength of its with profits fund.

ReportInvestor

Ellieseleven wrote:

The surrender value is £4814.37 plus bonuses £255

So if you surrender now do you get £4,812.37 or £5, 067.37? Are the bonuses a smokescreen to confuse investors or are they actually included in the surrender value?

Also I just noticed this from an earlier post

Ellieseleven wrote:

After seeing this thread I have telephoned Axa for a settlement figure and was quoted £5067 plus £255 bonus

So it's not just the % returns that are being revised down .

Why? The stock market is still looking OK. I wonder if it's because of the interest rate rise that may hit their fund's significant holding of (interest sensitive) bonds.

To Myrtle
I'm glad that you are happy with your decision and feel like you are moving on. The reduced surrender values from Axa in Ellie's post are more evidence that you have done the right thing .

Ellieseleven

The surrender value is 5067.37 which includes £255 bonus!

ReportInvestor

Hi Ellie,

Sorry. That was a bit of a "senior moment" .

OK. You could take the £5,067 and invest it to receive 4% after tax (e.g. £3K in a 2006/7 tax free mini-cash ISA and £2,067 into IceSave @5.45% gross until April 2007 when you transfer that to a 2007/8 tax free mini-cash ISA.

Make sure you also feed the £60pm monthly contributions into a top paying Regular Saver e.g. Britannia BS @ 7.5% before tax - with a view to putting these into a tax free ISA in due course. Don't forget to keep this £60 pm going until 2013.

If you achieve at 4% return on your ISA and cash investments you will end up with about £11,500 in February 1013 which Axa will only just beat if it achieves an optimistic 7% return on its investment fund.

The NSI ISA is about to pay 5.55% tax free so you could get off to a flying start .

HTH.

Ellieseleven

Many thanks for your help ReportInvestor - I plan to do exactly as you suggest and am now in the process of cancelling this plan.

Again many thanks and I appreciate the help you have offered :T

georgiasmum

I have a different AXA plan where I pay £60 per quarter. I am unsure of what its called (will dig it out). I have paid into it since 1999. I too have had the Indian call centre experience and haven't had any satisfaction. What next? I believe my policy is some kind of life insurance....

ReportInvestor

Post some more details when you have them, gm.

I see that Axa has managed to lose people money who invested £10K in their inappropriately named "with profits" bond five years ago. (The plan we have been discussing is also "with profits" . )

MSE link

"....Figures show that £10,000 with AXA will have grown to just £11,077 after five years to October 1 - a poor annual growth rate of just 2.1%. But anyone cashing in the bond will be charged a penalty of more than £1,000, leaving them with just £9,970....."

And yet the stock market has risen by 33% in the meantime .

Elsie2_2

Hi there I also have a bonus cash builder plan. I am considering cashing it in but after getting a figure from them, i'm really annoyed.
My initial payments were £20pm, i've had it 4 years and am currently paying £34pm.
Guaranteed cash sum is £4428. 4% £7140. 6% £8050. 8% £9050.
I've currently paid in £992 and their offering £377.
HELP!!!!!!!!