Ways to lose money with Axa Sun Life

Red_Elf

Hello all

First post ever, I was wondering if anybody had some advice over Axa Sun Life CashBuilder Plan.

My partner took out the Plan in 1997 for 15 years paying £10 a month, this has just matured and they have just paid her back £1176.!!!

Now quick and easy maths tells me she paid in £1800 over the 15 year period, so what has happened to the rest. When she took out the policy she was given examples that she would a least be assured £2400 in the advertising leaflet she had.

Is this legal that a company can take a least £600 of you? We have been told her policy had £21,000 life cover attached, which she did not know or request.

Is there anyway of complaining or getting at least the money back she paid in, this does not seem right as she was unaware she may lose money.

I know more people lose more money but £600 to us is a lot money, thanks to anybody if they have some advise

Thank You

dunstonh

Now quick and easy maths tells me she paid in £1800 over the 15 year period, so what has happened to the rest.

The last decade has been dire for investment returns. Markets are lower than what they were when she took it out (more or less depending on date). Most of premiums would have been paid when the investments were higher in value than they are now.

You would expect a loss. However, I wouldnt have expected that much of a loss. (although that bit is answered below)

When she took out the policy she was given examples that she would a least be assured £2400 in the advertising leaflet she had.

It is highly unlikely the leaflet would have said anything of the sort in 1997.

Is this legal that a company can take a least £600 of you? We have been told her policy had £21,000 life cover attached, which she did not know or request.

First question. What £600? However, it is legal for them to have charges which pay them for issuing the product.
Second question is that she did request it. She filled in the leaflet and applied to it.

The second bit also indicates why the returns are likely to be appear poor. The sum assured of £21k would indicate that some of that £10pm wasnt going to investments but going towards the cost of life assurance. The full regular investment plan versions typically only have a sum assured of around one third of the total premiums paid. She chose to have extra life cover and that was paid for out of the £10 leaving a much smaller amount to be invested.

Is there anyway of complaining or getting at least the money back she paid in, this does not seem right as she was unaware she may lose money.

There doesnt appear to be anything wrong to complain about. She bought a product without advice. She didnt see an adviser or a sales rep. It is clear you do not understand what she bought and that probably means she didnt but no-one else is responsible for that. If you DIY then you take responsibility for what you buy. There are some exceptions. The literature needs to be accurate. AXA Sun Life did actually fall foul of this for a period on one of their other versions of the plan and have had to issue refunds. However, their marketing before and after that date was checked for errors and none found.

Bottom line is that you are welcome to complain but your reasons are not valid and would be very easy for them to reject.

McKneff

Her life would have been covered throughout the term, that is something that has to be paid for.

Just thank your lucky stars that family didnt have to make a claim on it.

Red_Elf

Thanks for the quick reply

We have looked at her policy again and she has a personal illustration prepared exclusively for her by Axa Sun Life stating her name that she has a guaranteed cash sum after 15 years of £2400 if she pays £10pm

That is why she took out the policy

Thank you again

Gareth19

Red_Elf wrote: »

Thanks for the quick reply

We have looked at her policy again and she has a personal illustration prepared exclusively for her by Axa Sun Life stating her name that she has a guaranteed cash sum after 15 years of £2400 if she pays £10pm

That is why she took out the policy

Thank you again

I took out this plan in the late 90s too and was fortunate to cancel it after only 1 year as the media was full of how it was throwing money away and the plan would never work out as you think. Sure enough this happened and I am glad I didn't stick with it.
First out the plan seems great and they make it sound wonderful. The one I had was invested in their with profits fund which are notorious for not delivering good returns.Your life is covered for the duration of the plan and when it matures you get x amount back (they always show you to get more back than what you put in). However in the small print you will find that it says somewhere about investments can go also go down and you may get back less than what you put in. You google this plan and you will find many tales of people unhappy with it and losing money hand over fist! The same is being said now about Axa Sun Lifes Guaranteed Over 50 Plan which you see advertised by Michael Aspel. I have read lots about that being a similar type of thing and the majority of people won't get back what they think!
Personally I think your better off going up the garden path with a wad of money and setting fire to it than putting it anywhere near this company but hey thats just me.

dunstonh

We have looked at her policy again and she has a personal illustration prepared exclusively for her by Axa Sun Life stating her name that she has a guaranteed cash sum after 15 years of £2400 if she pays £10pm

If that is the case then draw it to their attention. However, it doesnt fit with a death benefit of £21k on a £10pm premium.

I took out this plan in the late 90s too and was fortunate to cancel it after only 1 year as the media was full of how it was throwing money away

These plans were obsolete by the early to mid 90s. Problem is that direct marketing allows providers to continue to retail products that have gone well past their sell by date.

You google this plan and you will find many tales of people unhappy with it and losing money hand over fist! The same is being said now about Axa Sun Lifes Guaranteed Over 50 Plan which you see advertised by Michael Aspel.

Whilst there are a small number of people this plan could benefit (and I mean small), the product itself has been considered poor value ever since it was conceived. The reason they use June Whitfield or Michael Aspel is that those of that generation trust them.

tell_it_how_it_is

dunstonh wrote: »

Whilst there are a small number of people this plan could benefit (and I mean small), the product itself has been considered poor value ever since it was conceived. The reason they use June Whitfield or Michael Aspel is that those of that generation trust them.

Either that, or their money is running out, and they both need another few bob!


FWIW, because a mate worked for them (and split his commission with me), I took out three similar 10 year ones across the 90s with Refuge Assurance. The first gave a fair return in 2002 (£1560 in - £2500 out), the second was strangely deemed mis-sold so I was returned my premiums plus a couple of hundred 'compo', and the last expiring in 2008 was dire (£6000 in - £6150 out). So clearly getting worse and worse over time, and I'm glad I stopped after three.

But OP, considering the info you say you have there, it's certainly worth pursuing to at least initially get a full breakdown of what's what - you can't help but be extremely disappointed with that.

dunstonh

FWIW, because a mate worked for them (and split his commission with me), I took out three similar 10 year ones across the 90s with Refuge Assurance. The first gave a fair return in 2002 (£1560 in - £2500 out), the second was strangely deemed mis-sold so I was returned my premiums plus a couple of hundred 'compo', and the last expiring in 2008 was dire (£6000 in - £6150 out). So clearly getting worse and worse over time, and I'm glad I stopped after three.

But OP, considering the info you say you have there, it's certainly worth pursuing to at least initially get a full breakdown of what's what - you can't help but be extremely disappointed with that.

Two big differences on yours.
1 - yours would have been a "savings" product with a low sum assured (OPs has a greater life assurance amount)
2 - Refuge products were put in place by a sales rep. The sales rep had to be compliant. The OPs was an advert response. No sales rep or adviser was involved.

jimjames

Red_Elf wrote: »

Thanks for the quick reply

We have looked at her policy again and she has a personal illustration prepared exclusively for her by Axa Sun Life stating her name that she has a guaranteed cash sum after 15 years of £2400 if she pays £10pm

That is why she took out the policy

Thank you again

If that is definitely what it says rather than a possible illustration dependent on investment returns then it would be worth writing to them sending a copy (not original) asking why this has not been paid out. If you get a response it would be handy to post here so we know.