AXA Sun Life RIP OFF!!!!!

paullwill8

Coatze, I have been contacted by Axa after sending them a letter as you suggested.
Axa have agreed to refund all my premiums plus inerest plus 1%, fantastic!
Iwas very close to accepting their offer of £105 but thanks to you I am now getting almost £600.
Cannot thank you enough, this site is AWESOME!!!!!

devonpie

I have a Bonus Cash Builder Plus and have just read this thread with a sinking realisation that my fears that I had made a mistake were true. If only MSE was around when I started it! Should I write to them and demand my money back too?

paullwill8

Devonpie if you took out your policy between February 2002 to January 2004, you like me could get all your money back, read this thread thoroughly.

t_ferrino2k

Hi,

I'm currently helping my elderly parents to cut down on some unnecessary outgoings, namely direct debits, some of which are hard to identify, especially as paperwork is sparse and muddled up!

In particular, I have found 4 premiums being paid monthly to AXA Sun Life, 3 of which I have found the policy docs for (£7 - 1999, £12 - 2000, £17 - 2002 and another one at £12 per month - commencement date unknown).

My father is in his 80s now and cannot remember much about these. I am wondering whether he was tempted by a free pen or carriage clock.

What would you recommend that he do, as this is £48 going out each month? I know very little about life insurance policies - not having one myself - and haven't heard the best when it comes to AXA Sun Life's scruples.

Obviously I need to write to them on my father's behalf (he cannot call up due to his partial deafness and finds it hard to keep up with conversations, especially on the phone), but am just looking for some advice on what exactly to put in writing, before cancelling the DDs.

Many thanks,

Mac

ReportInvestor

Find out from Axa how long these policies have to run.

From the details given, none of these policies sound like the BonusCashBuilder that we are discussing on the other AxaSunlife thread on this board.

But the principle will be the same so you should look in at that thread - Here's a link to page 9 of 9

High charges and poor performance are the name of the game.

Your father will probably not get back what he has paid in if he cashes them in now, but that may still be the best course of action available to you as future investment may be just throwing good money after bad - especially if he is currently hard up.

Post more policy details before you take any action, though.

Are they with profits?
Guaranteed minimum sum assured?
Bonuses to date?
Start and finish date (including month)month?
Are the premiums flat rate or have they increased/are increasing?

Your father should get annual statements for each policy.

If you are writing to Axa you should ask for a) a surrender value and b) a projected return based on 6% growth in the underlying fund - or whatever Axa says it's average projected growth figure is.

Do this for each policy and post the results.

t_ferrino2k

Excellent advice. Thank you so much for such a lightning-fast reply ReportInvestor!

The three policies I have read through are for the "Guaranteed Over 50 Plan".

Each is without profits and, "designed to provide a fixed sum on death". The premiums are flat rate.

Unfortunately, on further reading, it does appear that the amounts he might get back would be close to nothing, as nothing can be reclaimed until after 6 years or more. For example, the 2000 policy is close to 6 years old (in Nov). After paying in £12 per month for those years, the most he could claim back would be £192 (taken from a 10 year projection @ 6% growth per annum). Not so good.

It's not so much that he wishes to cancel all 4, but I suppose to find out whether there is some way to reduce it down to one or two. Perhaps he should cancel the 2 or 3 oldest ones and just cut his losses. However, the lump sum payments (on death) - probably due to his age - are relatively small for the number of years he's beeing paying the premiums for.


Guaranteed Over 50 Plan:

Surrender value - acquired after payment of 5 years' premiums.
Protection against forfeiture - operative after payment of 4 years' premiums.

(1) Premium: £17 per month (from 16/01/2002) [£1,350.00 after 2 years - death by natural causes]

(2) Premium: £12 per month (from 13/11/2000) [£910.00 after 2 years - death from natural causes]

(3) Premium: £7 per month (from 27/04/1999) [£445.00 after 2 years - death from natural causes]

(4) Premium: £12 per month (date of commencement unknown) [payment on death unknown]

Sorry if this all seems quite muddled. I will definitely take the next step of writing to AXA Sun Life, taking into account the helpful suggestions that you've made.

Mac

ReportInvestor

t_ferrino2k wrote:

The three policies I have read through are for the "Guaranteed Over 50 Plan".

Interesting.

The FSA decided to fine Axa for its advertising of this product (along with the dreaded "Bonus" "Cash Builder" Plus plan).

The key dates are Feb 2002 to 2004.

Hopefully that might apply to the last policy? If it does, there is every chance of a return of premiums paid + a small amount of interest. What a pity that the first one is one month out .

t_ferrino2k

June Whitfield has a lot to answer for!

I'll research into the 2002 one some more and see what I can come up with. Thanks for that.

Personally, what would you suggest to do with the others, bearing in mind the relatively small amounts that can be claimed back?

For instance, the 1999 one would only return £107 after 7 years, but also only £122 after 8 (around April 07), so paying £7 per month equates to £84 annually. Simply not worth it if he wants to cancel (i.e. better to cancel asap).

The 2000 one would be a similar situation (as stated in my previous post).

I've probably answered my own question. Even on death, the payouts are relatively small for all the years he's paid in. So probably best to cancel in writing and for him to reclaim the little he is entitled to now.

Edit: Pretty sure from the policy number that the missing one is from 2000 or 2001, which is a shame!

ReportInvestor

t_ferrino2k wrote:

June Whitfield has a lot to answer for!

Ah!

So Carol Smillie's leg's to attract the younger male investor and June's Whitfield's charm and subtle promise of "worldly experience" for the more senior version?

Men. Can't they be mugs sometimes ?

Let me do the sums when you have more details of projected returns from today's starting position.

The Life Insurance element in these plans does make it different from the CashBuilder Plus calculations - but the poor performance of the underlying fund and high charges are common factors .

dunstonh

The over 50 plans should not be compared with an investment product. They are a whole of life assurance with life assurance being the key driver.

The issues relating to the cashbuilder do not apply here.