'Beware the ‘Over 50 Sun Life Axa Plan’... blog discussion

amanda_jane_2

My Dad has dementia and can no longer manage his financial affairs so I have been completing the court of protection application forms so I can act for him and on his behalf.
One of the questions was regarding life assurance policies so I called Axa Sun Life to get the details of my Dad's policy. I was aghast at what I was told.
Dad took the over 50 plan out in November 1998 paying out £26 each month ever since so thus far he has paid Axa Sun Life £4,056. However in the event of Dad's death the sum paid out is only £3,660. That's awful I thought and so asked what the surrender value would be, £1,210.73 was the reply so I then asked if there was an alternative. The option then offered was that the policy could be marked as 'paid up' so that no more payments would be made BUT that would result in a reduced pay-out on Dad's death of only £1,790. So, what do I do? Continue to pay £26 each month or forego the majority of money already paid in, cutting his losses? I just don't know what to do for the best. Dad is 78 this year and other than his dementia is relatively well (thankfully!) so if we were to continue paying the £26, I have no idea how long we might continue to do so. I don't particularly want to think about that but you do have to ask yourself these things I suppose.

lisa1972

My mum is looking to set up an over 50's plan, but after reading this forum I will def tell her not to go with sunlife! Any ideas about setting up a new plan with a company who will not rip her off?
I'm new to this forum, so I'm not sure if this is the correct way of posting a reply.

jowie

Just came across this old thread and would like to ask about the Sun Life Over 50 Plan. My partner was considering paying into it so I thought I'd come on here to see whether it was any good or not.

The problem is, both Martin's blog and this thread suggest that the payout after two years of £6pm is £570... On the literature my partner received, it is a more effective £1,370. The policy he was thinking of taking out (£10pm) would pay out £2,735 - so that's more than a tenfold return.

UPDATE: I've just checked online and it appears to be correct: https://apply.sunlifedirect.co.uk/guaranteed-over-50-plan/quote

Considering these new amounts, would people on here still think it's not worth considering?

Thanks!

:-Joe

Fruit_and_Nut_Case

csj wrote: »

The best feature of this AXA Plan is the free gift on offer. Sign up at £6 per month and select the free TV voucher from Argos (worth about £120). Wait for the first £6 instalment to be taken from your bank account,wait for the Argos voucher to arrive, cancel the plan and take the voucher to Argos. Either take and keep the TV, or return it a day or so later for a new long-dated Argos voucher.

This may not sound very ethical but then neither is the AXA plan itself. I know of people who've made about £500 from this ploy. Don't, however, opt for the other freebies e.g. the satnav unless you really want them - they are worth a lot less thasn the TV and some of them are not returnable to Argos e.g. the satnavs.

I've been getting these mailings for ages and have always put them straight in the recycling bin. The latest one offers £75 of M&S vouchers after the first (i.e. only!) month's payment. I think I might go for that.

forestlands

Hi Folks,:) I took out a Life Plan Insurance with Shepherds Friendly - similar to over 50', in 2003. Been very happy with the way interest has been growing, regular updates, good customer service, and info. on tax free insurances. They have a website, Shepherds Friendly Society.

Find Axa unethical in many ways! Have written to the Coop Bank, who use Axa, pointing out how unethical Axa is which is not consistent with the Coop Banks ethical policy. Have also produced an online petition following Axa refusal to cover a vet bill, for my Portland ram Eddie who had a broken leg as the result of a dog attack, Axa said Eddie should have been "written off"! They offered £100. No wonder Axa are in the top 10 list of profit making companies - think they are second!

forestlands

Sorry to hear of you experiance, I took a policy out with Shepherds Friendly in 2003, to cover funeral costs, pay £15 a month. Total payout at the beginning of the year would be over £3.000, get regular updates, enough to cover funeral costs and an affordable monthy sum for a pensioner. Estimate have paid out £1.350. Hope things work out well for you!

esuhl

forestlands wrote: »

Have also produced an online petition following Axa refusal to cover a vet bill, for my Portland ram Eddie who had a broken leg as the result of a dog attack, Axa said Eddie should have been "written off"! They offered £100.

If you think Axa have broken the terms of your contract, maybe it would be a good idea to pursue them throught the courts...?

vaporate

Liverpool Victoria do a good deal.

£30 a month for a £6900 lump sum.

I work it out that it would take 19 years for you to start paying more than paying out.

Yet you are buying peace of mind if you think you will not live that long, especially with heart problems (pacemaker).

Pays out after just 1 year.

yeyehinney

I too recall 'Parky' and his axa/sunlife 'savings'. and the actors used to muse over what they were 'saving' for. I especially recall the 'geordie' lass saving for a new car "something sporty"
I recall this well because I fell for it! put in £25 pcm for myself and another £25 for my wife over 15 years (reaches for calculator), £9000 in. The return on each was £3101.xx , Yes,£6202!
ASxa/Sunlife ripped us off for more than £3000. plus interest.

It is true that the scheme turns out to be an insurance/investment scheme with the risks that 'investing' entails, but it is sold and marketed as a savings plan.

If any Building Society, for e.g. tried to take in savings and return only 66% they would soon be taken to task. (unless they went bust) however Axa/Sunlife go from strength to strength.

Imagine depositing £50 pcm for 15 years and when asked for it back with the interest, only returned £6000!!! I think there would be a national campaign, led by Martin to right this terrible injustice.

However as the 'theft' is wrapped up in an insurance/investment it's shrugged off.

I wonder how many 'Parky's' windows it would take to equal £3000?

zoned_out31

Would like to point out the Post Office have an over 50 plan provided by Aviva that my mum and dad took out. Now they're in their early 50's but they're actually going to pay in less than what they'll get back because the plan has a 20year maximum payment term- so after the 20 years the plan is fully paid up. You'd still loose on inflation I guess, but at least you don't pay in more than you get back.

My mum's plan is £15 a month, so £3600 after 20 years, but her cover is over £4000...

They were happy enough with that and were able to take it out in their local branch- they've won the award for best life insurance provider from 2008-2011 too so they must be doing something right!