AXA Sun Life RIP OFF!!!!!

ReportInvestor

FSA wrote:

AXA Sun Life's advertisements for the Bonus Cash Builder Plus Plan (BCP) and the Guaranteed Over 50 Plan (GO50) did not provide customers with sufficient information about how the product worked or the risks involved. The design, content and format of the promotions focused attention on the benefits of the products including the offer of free promotional gifts, but gave less prominence to key information about the risks.

Thanks for that dh. Could you give a bit more detail about the risks that t_ferrino2K's father is exposed to in his Over50 Plan?

dunstonh

The GO50 is a without profits whole of life policy which provides a guaranteed cash sum on the death of the policy holder. The guaranteed cash sum is determined by the level of premium, sex and age of the policyholder when they take out the policy. No bonuses are added to the GO50 and therefore over time inflation will have the effect of eroding the value of the guaranteed cash sum. Depending on how long the customer lives after taking out the policy, the total amount of premiums paid into the policy may exceed the guaranteed cash sum. If the policy is cancelled the customer may get back significantly less than the value of the premiums paid into the policy and if it is cashed in during the early years the customer will not get back any premiums. In addition, cover under the policy automatically ceases on cancellation of the policy.

So, in simple terms it is a whole of life assurance. Often known as a funeral expenses plan.

ReportInvestor

So there is an inflation risk, an investment risk and an longevity risk?

t_ferrino2k

Thanks so much for clarifying the information on the GO50. It's pretty much as I thought, especially after reading a little more about this particular policy. I think it's best he stick with one and just cash in on the others, even though it will mean not getting much in return.

In the long run, it's throwing more money away by keeping them going, since his age and the relatively short length of time that he's been paying the policies (ranging from 4 to almost 7 years) means that it was probably an unwise decision to take one (and certainly 4) policies out in the first place.

I think it's probably worth keeping one going and just reclaiming what he can for the rest. I'll do my best to explain the situation to him and take it from there.

Mac

Paul_Herring

dunstonh wrote:

The guaranteed cash sum is determined by the level of premium, sex and age of the policyholder when they take out the policy. No bonuses are added to the GO50 and therefore over time inflation will have the effect of eroding the value of the guaranteed cash sum. Depending on how long the customer lives after taking out the policy, the total amount of premiums paid into the policy may exceed the guaranteed cash sum. If the policy is cancelled the customer may get back significantly less than the value of the premiums paid into the policy and if it is cashed in during the early years the customer will not get back any premiums. In addition, cover under the policy automatically ceases on cancellation of the policy.

Are there any downsides to this financial product?

Steve4614

Coatze

I too pay into the AXA bonus cashbuilder plus plan. It has about 6 or 7 years to run to a 15 year term. I am quite happy to let it run to term if I will get more than my money back. I will have to check the commencement date of the policy but it may fall between February 2002 and January 2004. Do you recommend I let it run to term or should I withdraw now and get my money back??

jonathanen

Hi Everybody,


I've decided to put up a copy of my letter template send to AXA Sun Life, photos of all the letters from AXA Sun Life send to me, showing the links that I've found out while I was researching on the Internet to make up my letter in Microsoft Word Format and my AXA Sun Life story all onto 1 link from my web site - http://www.jonathanen.com/pages/AXA/AXA.htm


Regards,
Jonathan.

tony428

I'm looking for some advice in dealing with Axa Sun life

My mother has recently passed away Jan 2013, she took out a sun-life, life insurance policy back in 1993.

The policy was without profit and the sum assured if death occurred after 1995 was £560

Mum stopped paying in July 2009 when she began to develop dementia at the age of 87

Over this 17 year period my mother has paid Sun Life £1,170 they have written to me telling me the surrender value is calculated at a none forfeiture date the outstanding premiums plus interest are deducted from the surrender value,

The remaining amount is converted into paid up policy using a factor that is dependent on the age of the policy holder and how long the policy has been in force and the sum now due is £241.00

Sarajane72

I have a Axa Sun Life Money-back plan, it has just matured.
I was paying £14 a month, but stopped paying into it about 5 years ago (think it was tied to an insurance payable on death). I have lost the original paperwork after moving across the country.

However, I received £312 back today in my account.

I thought it might be a bit more, considering I was one of the 13% that didn't take the £100 odd pounds to move to a different 'with profits fund' in 2001.

Lesson learnt I think, will never trust any of these companies in the future and will look at ISA's in future. I was only 25 at the time and had a young son, I liked the fact that if anything happened to me, my son would be protected financially. The cash bonus at the end might help him in university. Now he is there, it wouldn't even cover a months rent Oh well.

Glen_Clark

These money grabbing celebrities disgust me.
Its not as if they need the money.
I have seen Gloria Hunniford paid to advertise these rip offs.
She is also paid to front BBC's 'Rip Off Britain' TV Programme.
Carol Vordeman paid to advertise overpriced margarine etc whilst posing as an independent scientist.
Seems to me an awful way to abuse their fans.