All types of investment involve some risk. Life Account 2 gives you access to a wide range of funds, the value of which may fall as well as rise.

You accept this investment risk by taking out this product. This means that we cannot guarantee the amount you get back when you encash your Life Account 2. It may be less than you expected, or less than you invested, for a number of reasons. For example:

  • The funds available all have specific objectives and associated risks. These differ according to the assets held within them. For example if you choose 'emerging market' funds that are investing in parts of the world with less well-established economies, their value could be subject to considerable price changes – known as volatility. Similarly some funds, such as property funds, can be difficult to encash and you might not be able to encash or switch from such funds as quickly as you want.
  • Old Mutual Guernsey may invest in assets which have redemption restrictions or notice periods applied from time to time. If such restrictions become applicable, they will also apply to relevant Old Mutual Guernsey funds and may delay the processing of switches, encashment and claims.
  • In exceptional circumstances, some funds may become valueless either temporarily because of suspension of a fund, or permanently.
  • If you do not review the choices of funds within your Life Account 2 regularly and monitor their performance, they might fail to meet your expectations.
  • If the funds in your Life Account 2 do not match your attitude to risk, they may not perform as you anticipate.
  • Where a fund holds investments in a currency other than the one it is denominated in and your Life Account 2 is held in, there may be additional risks because of exchange rate fluctuations.
  • We take great care in the selection of the funds that we make available for you to link to your Life Account 2, but the risk that a fund or any third party involved with its administration could become insolvent can never be ruled out. If this happens, you could lose some or all of the money you have invested in that fund.

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