Axa Sunlife- Cashbuilder Plus

Coatze_2

ReportInvestor wrote:

A word of caution

If Axa has rejigged its current surrender policy to pay out less for early surrenders in the policy, that slightly alters the odds in their favour and against the investor who is thinking of cashing in and reinvesting the proceeds.

Rather than a reason to say "What can you expect with an insurer? I'm cashing in anyway," it might be a reason to revisit the sums before taking further action.

Unfortunately I won't be reunited with my spreadsheet until next week .

Can I put in a repear request? No-one has yet asked Axa to give them a payout projection for 2006 onwards based on 6% underlying growth in the fund. It would be really helpful to existing MSE Axa investors to have this information.

I have included a request in my letter of complaint in relation to a payout projection for 2006 onwards based on 6% underlying growth in the fund.

I will keep this post updated with any information that I receive from Axa.

Many thanks

Lee

glitter58

ReportInvestor wrote:

A word of caution

If Axa has rejigged its current surrender policy to pay out less for early surrenders in the policy, that slightly alters the odds in their favour and against the investor who is thinking of cashing in and reinvesting the proceeds.

Rather than a reason to say "What can you expect with an insurer? I'm cashing in anyway," it might be a reason to revisit the sums before taking further action.

Unfortunately I won't be reunited with my spreadsheet until next week .

Can I put in a repear request? No-one has yet asked Axa to give them a payout projection for 2006 onwards based on 6% underlying growth in the fund. It would be really helpful to existing MSE Axa investors to have this information.

Ok when I get the paperwork back I will give them a quick ring and ask this question,I did intend to but got sidetracked by the man who I spoke to as he was very hard to understand.
Thanks for the help by the way.
J

clerks6899

Hi i am another victim of AXA Sunllife now i have read through all threads etc and am still really confused, everything in me is shouting get out and run, but there is also that part that says maybe thing will get better (but i doubt it).
My policy is the PROVIDERPLUS PLAN and im assuming that it is the same as the cash builder plus etc. I phoned to get a surrender value and on 1 policy i have been offered £748.22 including bonuses but have paid in £1680 and policy 2 surrender value of £374.12 paid in £624. Digusting...

any way i started policy no 1 in feb 2002 and policy 2 feb 2003 within the time that they were fined and offered refunds etc does anyone know of any information concerning the terms and conditions of this, as as far as a i can remember i never recieved any info concerning this, I really dont want to keep paying in.Thankyou

clerks6899

Hi can anybody help with the previous post thankyou.

glitter58

glitter58 wrote:

Ok when I get the paperwork back I will give them a quick ring and ask this question,I did intend to but got sidetracked by the man who I spoke to as he was very hard to understand.
Thanks for the help by the way.
J

This is the information I had back today.
Assumed rate of growth

guaranteed cash sum £2209.00.

Compound bonuses existing now @ 3% £492.00 and @ 7% £492.00

Illustrated future bonuses @3% £539.00 @7% £1199.00

Total @3% £3240.00 @7% £3900.00

Now would I be better keeping this on for another 6 years or surrender it now based on these figures.
I have given all the info in a previous post but dont know how to merge them sorry.

Coatze_2

Coatze wrote:

I have included a request in my letter of complaint in relation to a payout projection for 2006 onwards based on 6% underlying growth in the fund.

I will keep this post updated with any information that I receive from Axa.

Many thanks

Lee

An update.


a quick thankyou to this forum and a thankyou to ReportInvestor for some sound advice.

On the original post above I mentioned that I had sent a letter to complain about misleading information. I also requested a payout projection for 2006 onwards based on 6% underlying growth in the fund.

In a response from Sunlife in a letter dated 16th May 2006 the following has been in my reply.

Dear Mr ......

Thank you for your recent correspondence regarding the cancellation of your policy.

I would like to reassure you that the Information given in our September 2004 letter will not affect your policy in any way or influence the final cash sum that you would normally receive from the plan, provided that you continue to pay your premiums. However, because of the incorrect information provided in the comparison figures with a Building society, I accept that your decision to take out the plan may have been influenced by it.

In the circumstances,therefore, if you remain dissatisfied woth your Bonus Cashbuilder plan, we will cancel it from the iytset and refund all premiums paid, taking into account any premium refunds plus interest at the Bank of England base rate plus 1%. Please note that we are legally required to deduct tax at the rate of 20% from this interest.

The amount you will receive if cancellation is appropriate.

iT IS LIKELY THAT THE COMPENSATION YOU WILL RECEIVE WILL BE £1,284.79 CALCULATED AS FOLLOWS:

Premiums paid to date £1,392.00
Less refund after the first year £180.00
Interest deduction base rate 1%, less tax at 20% £72.79
Total £1,284.79

I have opted to take this and stick the cash in a Isa.

This was the bulk of the letter. I was quite surprised that they have agreed to pay out.

Compared to the £898.12 I was intially offered.

Axa however failed to give me any sums or figures relating to the 6% growth.

There is some light at the end of the tunnel and I hope you will gain the same benefits with the help of this site.

All the best

Lee:j :j

clerks6899

Hi excellent result it gives hope to the rest of us.... i was literally thinking that i would have to take the less than half of what i had paid in from them which was offered. I know its cheeky but having never complained before and wanting it to look like i know what im talking about, would it be possible to give me a quick outline of the letter you sent what things you said which you think had the most impact (its like being back at school), i would really appreciate it otherwise i really wouldnt know where to start thanks for your time, :beer:
Kendra

Coatze_2

PM me your email, I can send it in word if you wish.

ReportInvestor

Great result, and thanks again for sharing your information. I'm delighted for you.

Bank of England interest rate +1%, eh ?

That's probably better than you could have got trawling through MSE for the best account every week.

dalriada

Help - I'm a new poster here and i'm quite confused about my AXA sunlife bonus cashbuilder plus policy.

I took out the policy in June 2001 based on a recommendation of my mum - I was an undergrad student at the time (just about to graduate from PhD now - it hasn't been cheap) and these policies were all the rage it seemed back then with their recommendations of 4%, 6% and 8% investment growth (They have never seen this value - instead I have received a bonus rate of 3.25%, 2%, 1.25% and 1.25%).

Anyway, I have since been told that this is not a good policy - and I contacted Axa Sunlife about the surrender value of the policy if I cash it in early. I have invested £1680 (five full years savings) and have been offered£989 - I was horrified. I have all my documents from Axa for this time and looking at my original correspondence they state that although you "may get back less than you paid in if you cancel your policy early" they also clearly state that after five years of payments I could get back £1700 with total deductions to date of £103 and the effect of deductions to date of £222.

I quite simply have no idea why they can justify such a large deduction based on my current surrender value. Having read this thread it seems that some people have successfully challenged Axa on this policy and received back more of their money than they had originally been offered.

I took out my policy just before the FSA ruling so I don't fall into the so called period where by people can get back their payments plus interest in full. What can I do, or how can I go about challenging Axa for this awful service (it's not even a service - I don't know what to call it)?

If only I had been more money aware back in 2001 I would never have taken this policy out. I feel so cheated - all for a cash back after one year and a crappy radio telephone that broke.

Please help - I am happy to write letters, make phone calls and create a stink if necessary - but I'm really not sure what to say - I'm baffled by figures and small print.

Confused!!!!!

Eamonn