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What is an investment bond?

Investment bonds, also called insurance bonds, combine the features of a managed fund and a life insurance policy, offering security and tax effective investing. One of the main tax benefits of investment bonds is that tax on earnings is paid by us at the company tax rate of 30%. Investment earnings generally don't have to be declared in your tax return, unless you make a withdrawal within the first 10 years of holding the policy. No personal tax is payable on the investment bond once you've held it for 10 years and continue to satisfy the 125% rule. If you withdraw before 10 years, you may be able to take advantage of the 30% tax offset. 

You can also benefit from no personal capital gains tax on investment switches, withdrawals and change of beneficial ownership, plus you can select from a range of investment options. Investment bonds are generally suitable for families looking to save for a child's future, retirees looking for tax-effective income, investors looking for certainty in estate planning and alternatives to super.

  1. Key benefits of our bond

    • If held for more than 10 years and complying with 125% rule, it is considered a “tax-paid” investment, as tax paid by us at the company tax rate of 30%. Plus no annual tax reporting unless you make a withdrawal.

    • If you withdraw in the first 10 years a 30% tax offset applies.

    • No personal capital gains tax on investment switches, withdrawals and change of beneficial ownership.

    • Select from a range of investment options investing in assets such as Australian and global shares, property, fixed income and cash.

    • Receive a one-off rebate on initial investment amounts of $100,000 or greater.

    Investment Growth Bond PDS

  2. What does it provide?

    Death benefit guarantee

    The Death Benefit guarantee provides certainty around the minimum amount that will be paid on the death of the last surviving Life Insured, which can be particularly important during times of market uncertainty*.

    Investment option guarantee

    Offered on four of our nine investment options which are designed to provide certainty around the minimum value of the investment. The nature of the guarantee differs across the Cash, Global Fixed Income, Diversified and Conservative investment options*.

    *Terms and conditions apply. Refer to the PDS for more details.

  3. Who is it suitable for?

    Our investment bond suits a variety of investor needs.

    • High income earners - Earnings are taxed at 30% instead of your marginal tax rate. With the 125% rule, not all contributions have to be invested for 10 years to acquire the tax-paid status.
    • Saving for children and grandchildren - Setup a Child Advancement Policy and (within limits) nominate when ownership transfers to a child. Alternatively children from 10 years of age can invest with parental or guardian consent.
    • Retirees - Can offer a tax-effective income stream outside of super.
    • Estate planning and wealth transfer - Our guarantees help protect your capital. No restrictions on who you can nominate and beneficiaries receive the proceeds tax-paid.
    • Alternative to super - No work test applies to contributions and nor do any contribution or lifetime caps apply. Access your money at any time. For further information on how a Resolution Life Investment Growth Bond can help you with any of the below please refer to our PDS. Resolution Life has prepared a Target Market Determination which describes the class of consumers that comprise the target market for this product. The Target Market Determination can be sourced at Target Market Determinations