Key Features of the Bonus CashBuilder Plus Plan

The Financial Services Authority is the independent financial services regulator. It requires us, AXA Sun Life plc, to give you this important information to help you to decide whether our Bonus CashBuilder Plus Plan is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference.

What is the Bonus CashBuilder Plus Plan?

It is a 15 year With Profits Endowment Investment Plan which includes life cover for the full term.
After 15 years you will receive a guaranteed minimum cash sum plus any bonuses payable.

Who should consider this Plan?

This Plan should be considered by anyone aged 18-55 who wishes to invest for the long term by paying premiums on a monthly basis for 15 years.

Its Aims

• To give you a cash sum at the end of 15 years by investing in the AXA Sun Life plc With Profits Fund. This cash sum will be made up of the guaranteed minimum cash sum and any bonuses added to this sum.
• To provide some life cover during the 15 year period.

Your Commitment

• To pay regular monthly premiums for 15 years. These premiums will increase by 20% of the initial premium at the end of each of the first five years.

Risk Factors

• The guaranteed minimum cash sum is less than the premiums paid.
• The bonuses that may be added to the guaranteed minimum cash sum will depend upon the future performance of the AXA Sun Life With Profits Fund and are not guaranteed. Therefore at the end of 15 years you could get back less than you pay in.
• The value of the investments held in the With Profits Fund, which include company shares and property, can go down as well as up.
• Your circumstances may change and force you to cash-in early. If you cancel your Plan in the first year you’ll get nothing back, as the majority of the charges for setting up the Plan are incurred during this time. If you cancel your Plan in the early years you will get less back than you have paid in. And you could still get back less than you have paid in if you cancel your Plan in the later years.
• The cost of meeting any guarantees and any other potential liabilities arising from this policy or any other new and existing policies in the With Profits Fund may reduce potential bonus payouts. See the section on What affects the value of your Plan at the end of 15 years? for more details.
• Inflation will reduce the value of any cash sum and this is something you should be aware of when considering what you may be able to buy with a cash sum in the future.
• The level of life cover in our example illustration assumes you are accepted on AXA Sun Life plc’s normal terms. If this is not the case the actual level of life cover will be significantly less than that shown on the illustration.
• Our charges may turn out to be higher than expected, which may reduce potential bonus payments.
• Your tax status may affect your suitability for this Plan. Please see the Tax section.

Can I change my mind?

You can change your mind within 30 days from when you receive the ‘Your Right to Change Your Mind’ form. During this time you can cancel your Plan by returning the form within 30 days - please see the "How to contact us" section for the address. AXA Sun Life will refund any premiums you have paid. If you do not cancel your Plan within 30 days it will continue in accordance with the Plan terms and conditions and any decision to cancel at a later date will fall under the normal Plan terms and conditions.

Cancelling after the first 30 days

You may cancel your Plan at any time by notifying AXA Sun Life.

If you cancel your Plan, your life cover will stop immediately. What you would get back will be nil in the first year, or significantly less than the premiums paid in the early years, because the Plan is designed to be an investment Plan for a term of 15 years.

If you have paid one or more years’ premiums it may be possible to make your Plan ‘paid up’. This means that you will not have to pay any further premiums but, at the maturity date, you will no longer receive the minimum cash sum or any regular bonuses which have been added. Instead, we will calculate a new, lower cash sum to be received at the maturity date. We will inform you of the revised cash sum when the policy becomes paid up. No regular bonuses will be added in future. There may be tax implications if you cancel your Plan or make it ‘paid up’. Please see the "Tax" section for details.

What is the AXA Sun Life With Profits Fund?

• It is a Fund which invests in a range of different assets, such as shares and property. The proportion of the Fund invested in each of these assets will vary.
• The Fund is regularly valued and the performance of the assets contribute to the profits made by the With Profits Fund - please see section "What affects the value of your Plan at the end of 15 years?"
• Bonuses are awarded from any distributions of profit made by the With Profits Fund. Regular bonuses may be awarded each year, and a final bonus may be awarded at the end of the 15 year term. As these bonuses depend on future profits they are not guaranteed. Once added, they cannot be taken away provided you keep paying your premiums until the end of the term.

What does the AXA Sun Life plc With Profits Fund invest in?

The Fund currently invests 64.1%* of the assets attributable to Bonus CashBuilder Plus Plans in shares and property, whose performance can be volatile. Over the last 5 years this percentage has varied between 40% and 80%, but could vary beyond these levels in the future. The remainder is invested in fixed interest investments and other similar investments, whose performance tends to be more stable, and in cash. The value of all investments will go up and down over time.

*As at 30 June 2008.

What benefits will the Plan give me?

All the examples in this Key Features document are based on a male aged 39 now paying £10 per month initially. A personal illustration showing what you could receive based on your age, sex and chosen premium level, will be sent to you with your policy documents after we have received your application.

• As an example, you will receive a guaranteed minimum cash sum of £2,453 at the end of 15 years, which will be less than the total premiums paid in totalling £3,240. This cash sum assumes that all premiums have been paid and depends on your age and sex. The amount quoted is based on a monthly premium of £10 for the first year which will increase by £2 at the end of each of the first five years becoming £20 in the sixth and subsequent years.
• In addition, variable regular bonuses may be added, and a final bonus may also be payable. All bonuses depend on the future profits of the AXA Sun Life With Profits Fund and therefore are not guaranteed. Once added, they cannot be taken away provided you keep paying your premiums until the end of the term.
• Life cover for 15 years. See the section entitled "What life cover will I receive?" for details.

How do bonuses work?

• Our With Profits business is managed in accordance with AXA Sun Life’s Principles and Practices of Financial Management, a copy of which is available on request. The Guide to how we manage our With Profits business contains a summary of this information.
• Bonus rates of With Profits policies are smoothed. This involves some building up of reserves in better investment periods, which may be used to pay bonuses when there is an investment downturn. Smoothing therefore gives you some protection from short term adverse stock market fluctuations. Future bonuses come from profits not yet earned and are not guaranteed.

Regular bonuses

These are normally declared annually and are paid at the same time as the guaranteed minimum cash sum, at the end of the term. They are expressed as a percentage of the guaranteed minimum cash sum and any regular bonuses already declared. These bonuses, once declared, are guaranteed in addition to the original guaranteed minimum cash sum as long as premiums are paid to the end of the term. AXA Sun Life will advise you each year of the amount of such bonuses added to your Plan.

Final bonus

If this is paid, it is paid at the same time as the guaranteed minimum cash sum, at the end of the term. It is calculated as a percentage of regular bonuses previously added and is paid in addition to the guaranteed minimum cash sum and regular bonuses.

What might I get back after 15 years?

This example is based on a male aged 39 now paying £10 per month initially. A personal illustration showing what you could receive based on your age, sex and chosen premium level, will be sent to you with your policy documents after we have received your application.

• What you will get back depends on how the value of the investments in the With Profits Fund grow.
  • If the investments grow at 4% a year you would get back £3,830
  • If the investments grow at 6% a year you would get back £4,310
  • If the investments grow at 8% a year you would get back £4,860
• These figures are only examples and are not guaranteed. They are not minimum or maximum amounts; what you will get back depends on how the investments in the With Profits Fund grow and on the tax treatment of the investments. You could get back more or less than this. Most firms use the same rate of growth for projections but their charges vary.

Inflation will reduce the value of any cash sum and this is something you should remember when considering what you may be able to buy with a cash sum in the future.

What life cover will I receive?

This example is based on a male aged 39 now paying £10 per month initially. A personal illustration will be sent to you with your policy documents after we have received your application.

Example:

• You will benefit from life cover of £2,430 for the next 15 years. The life cover assumes you are accepted on AXA Sun Life’s normal terms. If this is not the case the life cover will be significantly less than that shown.
• If you die during the term, your estate will receive either the life cover of £2,430, the full value of the premium payments you have made or the cash-in value of your Plan, whichever is greater. Your estate may be subject to Inheritance Tax, please see the Tax section for more information.
• Failure to disclose all material facts on your application form could affect the payment of benefits.

Payment of Death Claims

From the date of death to when the payment is made we will add interest to the cash sum paid out. The rate of interest used to calculate this amount will typically be around 0.5% per annum lower than the Bank of England Base Rate.

What affects the value of your Plan at the end of 15 years?

The amount you will receive depends on:

• Performance of the With Profits Fund.
• The level of charges (including the cost of life cover) in the With Profits Fund.
• The cost of meeting any guarantees or any other potential liabilities arising from this policy or any other new and existing policies in the With Profits Fund. These include, but are not limited to:
• Guaranteed maturity values
• Guaranteed cash-in values
• Guaranteed annuity rate
• Costs arising from providing compensation and meeting certain regulatory requirements.

How much will it cost to arrange this Plan?

For assisting in the arranging of this Plan, AXA Sun Life plc will provide AXA Sun Life Services plc with support worth £114.25 based on a customer paying £10 a month initially. This is paid at the start of your Plan out of the deductions we take from your policy, and the amount will depend upon the starting monthly premium chosen. All the charges for setting up the Plan, including this support, are included in the premiums you pay.

What happens if I stop paying my premiums?

The example in the table below shows what a male aged 39, paying £10 a month initially might get back if he stops paying premiums.

A personal illustration will be sent to you with your policy documents. The figures in the last two columns are calculated by assuming that investments will grow at 6% a year. If investment growth were lower than 6% the amount payable would be lower than that stated below.

If you cancel your Plan in the first year you’ll get nothing back, as the majority of the charges for setting up the Plan are incurred during this time. If you cancel your Plan in the early years you will get less back than you have paid in. And you could still get back less than you have paid in if you cancel your Plan in the later years.

The Early Years

At End Of Year	Total Paid In To Date	Total Actual Deductions To Date	Effect Of Deductions To Date	What You Might Get Back
1	£120	£123	£123	£0
2	£264	£137	£145	£134
3	£432	£143	£160	£310
4	£624	£98	£125	£571
5	£840	£88	£123	£838

The Later Years

At End Of Year	Total Paid In To Date	Total Actual Deductions To Date	Effect Of Deductions To Date	What You Might Get Back
10	£2040	£314	£422	£2260
11	£2280	£337	£471	£2620
12	£2520	£381	£544	£2980
13	£2760	£428	£624	£3360
14	£3000	£436	£670	£3800
15	£3240	£401	£676	£4310

What are the deductions for?

• The deductions shown in the above table include the cost of life cover, support, any commission, any surrender penalties and other expenses, charges or adjustments.
• The last line in the table shows that, over 15 years, the effect of the total deductions could amount to £676.
• Putting it another way, leaving out the cost of life cover, this would have the same effect as bringing the investment growth from 6% a year down to 3.9%.

Further Information

Premiums

Premiums are paid monthly by Direct Debit. You will always be advised of the amounts and dates of Direct Debits to be charged to your account. Note there will be a delay of fourteen days from the receipt of the completed Direct Debit Instruction before we can debit your account, unless prior confirmation has been received from your bank or building society.

Tax

The fund in which your premiums are invested is subject to tax on investment income and capital gains and this tax is deducted from the fund by AXA Sun Life. This Plan may be unsuitable for non-taxpayers as they will be unable to reclaim this tax. If the policy is cancelled in the first 10 years and the cash value exceeds the total premiums paid, there may be a charge to income tax at the difference between the higher rate and the lower rate on the profit (chargeable gain). This will only happen if you are a higher rate tax payer or the chargeable gain (averaged over the number of years the policy has been in force) causes you to become a higher rate tax payer. This means you could have extra tax to pay. If the Plan has been made ‘paid up’, and you have paid less than 10 years’ premiums, higher rate tax may arise on any chargeable gain on subsequent cancellation or death, or on survival of the term. This means you may have extra tax to pay. The proceeds of the Plan after 15 years, or on death at any time, will not be subject to capital gains tax or income tax. Any amount paid out on your death will normally form part of your estate, so may be subject to inheritance tax, unless you write your Plan subject to an appropriate trust. Tax information is based on our understanding of current law and HM Revenue & Customs practice. Tax legislation may change in the future.

Law

AXA Sun Life plc and you have a free choice about the law that can apply to a contract. AXA Sun Life plc proposes to choose the law of England and Wales, and, by entering into this contract, you agree that the law of England and Wales applies. Your policy and any subsequent correspondence will be in English.

Main Business and FSA Registered Details

AXA is a worldwide insurance group. In the UK one of the AXA companies is AXA Sun Life plc which is an insurer. AXA Sun Life plc is entered on the Financial Services Authority (FSA) register. FSA register number: 185063. You can look up our FSA register details through the FSA website: www.fsa.gov.uk/register/home.do

Compensation

Your Plan is covered by the Financial Services Compensation Scheme. This means that if AXA Sun Life plc became insolvent you would be covered for at least 90% of the value of your Plan. Further information is available to you in a leaflet that we will send to you on request. You can also obtain information from the Financial Services Authority and the Financial Services Compensation Scheme.

Days of Grace

Paying monthly

After the first premium has been paid, if any subsequent premiums are not paid on the due date, we will allow ten days of grace during which time you can pay the outstanding premium and the policy will remain in force. If the outstanding premium is not received within the days of grace, protection against forfeiture regulations may apply.

Paying quarterly

After the first premium has been paid, if any subsequent premiums are not paid on the due date, we will allow 30 days of grace during which time you can pay the outstanding premium and the policy will remain in force. If the outstanding premium is not received within the days of grace, protection against forfeiture regulations may apply.

Protection Against Forfeiture

Protection against forfeiture regulations will apply to your policy after you’ve paid one year’s premiums. Protection against forfeiture means that, if you fail to pay an overdue premium within the days of grace as described above, your policy will remain in force for one year from the date the first unpaid premium was due. If you pay the overdue premium(s) (and interest on those premiums at a rate to be determined by AXA Sun Life which will be reasonable in all the circumstances) during that year, your policy will then continue with all benefits unaffected. Also, if a claim (for example a death claim) is made on your policy during that year, AXA Sun Life will still pay out in respect of the claim, after deducting from it the amount of the overdue premium(s) and interest. If at the end of that year the overdue premium(s) and interest have still not been paid, the policy will be made ‘paid up’. This means that you will not have to pay any further premiums but, at the maturity date, you will no longer receive the minimum cash sum or any regular bonuses which have been added. Instead, we will calculate a new, lower cash sum to be received at the maturity date. We will inform you of the revised cash sum when the policy becomes paid up. No regular bonuses will be added in future.

How to contact us

Enquiries, complaints and cancellations

If you would like further information or you have a complaint about our service, then please contact AXA Sun Life plc, PO Box 1810, Bristol BS99 5SN.

Tel: 08457 322 223.

If you are not satisfied with any aspect of the service that you have received from us, then we have a written complaints handling procedure, a copy of which is available on request. Complaints we cannot settle may be referred to the Financial Ombudsman service at: South Quay Plaza, 183 Marsh Wall, London E14 9SR.

Telephone 0845 080 1800.
E-mail: complaint.info@financial-ombudsman.org.uk
Website: www.financial-ombudsman.org.uk
Making a complaint will not prejudice your right to take legal proceedings.

General Information

Client Categorisation

As a retail customer of AXA Sun Life you have protection under the Financial Services Authority’s rules. However, unless you have received advice from a financial adviser in choosing this product, you are not protected on the basis of its suitability for your needs. The information in this pack does not contain advice regarding whether this Plan is suitable for you. All statements in this literature assume that you are eligible for this Plan, acceptance at AXA Sun Life’s ordinary rate of premium, all premiums are made when due and that current legislation remains unaltered.

The total of the initial monthly savings amounts for this and other similar investment plans underwritten by AXA Sun Life must not exceed £100 a month. A copy of your completed Application Form and/or specimen policy will be available on request. This Plan is available for those aged 18-55 who are UK resident. We guarantee the terms of this offer if you apply before the close date. If we repeat this offer we cannot guarantee that the terms will remain unchanged.
If you apply after the close date you should be aware that the information regarding the offer in this pack may be subject to change. The terms of this offer may be repeated in other advertisements which extend the application period shown.

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