Axa cash builder policy

5erge

Approx £14000 paid to date. So yeah a pretty good return. My wife has the same policy so we'll cash mine now and let hers mature. We are expected 250% terminal bonus.

tyrosteve

Hi. Just thought I would let you know about my cashbuilder.. My maturity date was 3rd March, and on 3rd march the money was paid into my bank account... £6480 paid into the policy over 15 years.
Paid to me on 3rd march £12261.48..SO GLAD I TOOK NO NOTICE OF THOSE WHO SAID SURRENDER. Oh , they have all gone so quiet!

dunstonh

tyrosteve wrote: »

Hi. Just thought I would let you know about my cashbuilder.. My maturity date was 3rd March, and on 3rd march the money was paid into my bank account... £6480 paid into the policy over 15 years.
Paid to me on 3rd march £12261.48..SO GLAD I TOOK NO NOTICE OF THOSE WHO SAID SURRENDER. Oh , they have all gone so quiet!

I refer to your other post saying much the same and questioned how you have managed to get nearly 15% a year returns in that period when the fund is not known for doing anything of the sort and other recent maturities have not come close to that.

simonc1969

I make that about a 9.5% compounded return, although I agree it still sounds very high. I have a policy maturing next July (2017), and am expecting about a 2.5% compounded rate (based on nothing in particular)

dunstonh

simonc1969 wrote: »

I make that about a 9.5% compounded return, although I agree it still sounds very high. I have a policy maturing next July (2017), and am expecting about a 2.5% compounded rate (based on nothing in particular)

Remember that is nearly 10% after the charges and cost of life cover. Charges are about 2.5% p.a. Life cover is a bit of unknown but it would add another few percent. Plus, it is taxed internally (20% on gains). Hence where I was looking into double digits as the gross return.

However, on the other thread, there have been several posters now giving high returns on their maturity. It appears to be down to the estate distribution (as the return is not in line with expectation unless it is getting a short term artificial boost)

diamonds

Early surrender usually means you fortify thousands, email them and ask surrender value sum, or wait 12 months.

I know people at a charity who paid almost £3000 in Prudential Endownment surrender fees and got back less than paid in by taking it 4/5 years early...against all my advice. These were well paid staff paying in £30 a month.... but some idiots will be utter idiots with good advice.

PeacefulWaters

diamonds wrote: »

Early surrender usually means you fortify thousands, email them and ask surrender value sum, or wait 12 months.

I know people at a charity who paid almost £3000 in Prudential Endownment surrender fees and got back less than paid in by taking it 4/5 years early...against all my advice. These were well paid staff paying in £30 a month.... but some idiots will be utter idiots with good advice.

Are you authorised to advise?

dunstonh

I know people at a charity who paid almost £3000 in Prudential Endownment surrender fees and got back less than paid in by taking it 4/5 years early...against all my advice.

I also know people that have surrendered the endowment as it was good money after bad and the alternative had a much earlier breakeven point. There is no hard and fast rule here.

simonc1969

In case of any help.
I started this in 2002 (back then 2017 seemed soooo far away).I did the £50 in rising to £100 after 5 years. Total cash input 16,200. Last year (April 16) I got a surrender quote of 22,500. I decided to stay in. It has just matured (well, does in July) and they are saying I should expect to get £28,050. (an extra 1500 put in over those 15 months) That works out as a compound growth rate of about 7.5%, (basic excel model - annual compounding) which seems pretty reasonable, and much better than I was expecting. I guess they have largely been invested in fixed income which has gone up in value as interest rates have fallen. So for me, I think waiting for maturity worked out well. However largely will be using this to clear some loans, so no spending spree!

Krusty77

Based on Simonc and my projection these policies seem to be realising circa 175% of their premiums when left to mature. I started my policy back in Oct 03 seems like ages ago starting at £75 a month & rising to £150 a month after 5 yrs. Last payment Sep 18. Called Friends Life last week they're quoting a projection of 41k at maturity against 24k worth of premiums paid in.