The returns from this type of investment are 'smoothed', to offer you the potential for steadier growth over the long-term.
Any growth achieved will be reflected through a combination of adding annual bonuses, by increasing the unit price and by further additions of terminal bonus which may be added when the units are cashed in.
Remember, as with all stock market linked investments, the value of this plan can go down as well as up, and you may not get back the amount you invested. The value of your investment in the With-Profits Fund may be reduced to reflect market conditions on full or partial withdrawal, at any time other than on the policyholder's death.
This reduction is called a Market Value Reduction (MVR). This could reduce the value of your investment and is most likely to happen following a large or prolonged fall in the stock market, or after a period where investment returns are regularly below the level we normally expect.
Our philosophy is always to balance potential returns without taking unnecessary risk.