Risk Factors

• What you might get back will depend on our investment performance and is not guaranteed. It will be less than illustrated if the performance of the investment is lower than illustrated.

• If you cash in your Plan early you may receive less than the Policy Account. This will happen either as a result of surrender charges or if we are forced to apply a Market Value Reduction (MVR). An MVR may be applied if the value of our investments falls suddenly.

• Your circumstances may change and force you to cash in your Plan early. If you cancel your Plan in the first 3 years you will get nothing back as the majority of the charges for setting up the Plan are incurred in this time. If you cash in your Plan in the early years (after the 3rd year) you may not get back as much as you invested due to the effect of charges.

• The returns you get on with-profits investments depend on a number of factors including:

• The return on investments in our underlying with- profits fund.

• The way we distribute any profits on the fund.

• Factors beyond our control, such as tax and the effect of inflation.

• Profits and / or losses from non-participating plans (other than unit-linked plans) which are also part of the with-profits fund.

• The cost of meeting any guarantees that we provide.

• The rate of future bonuses cannot be guaranteed and may also change over the years.

• Inflation will reduce the real future value of any cash sum.