Invest Smarter

Investment Growth Bond Strategy Papers

Saving for children and grandchildren

Investment bonds can help families provide children and grandchildren with a positive financial start in life. When investing for a child or grandchild the investment bond can be structured in a number of different ways.

1. Adult as owner and child as life insured

2. Adult as life insured and policy owner, and child as beneficiary

3. CommInsure IGB within a family trust

4. Child Advancement Policies

Tax-effective investing

When compared to superannuation at 15 per cent and a marginal tax rate of up to 47 per cent1, tax on earnings in an investment bond2 sits firmly in the middle at 30 per cent.

In addition, there are no capital gains tax implications if clients switch between investments or transfer ownership of the bond.

Tax solutions for high income individuals

Investment bonds can be used to provide high income individuals with a means to increase their wealth in a tax-effective manner.

Estate planning and wealth distribution

Investment bonds are increasingly being deployed as a strategic investment tool for estate planning.

Why? There is no tax payable on the death benefit payment and it can be paid to a broad range of beneficiaries such as extended family, unrelated individuals or charities.

Additionally, CommInsure offers a Death Benefit Guarantee that provides certainty as to the minimum amount that will be paid on the death of the last surviving life insured.

Benefit of guarantees

Safety and security are important considerations for many people, especially when the market is volatile. Which is why the CommInsure Investment Growth Bond offers two key features that help protect capital from market risk:

1. Investment option guarantees (available on 4 of the 9 investment options)

2. Death Benefit Guarantee

More strategies to follow in the upcoming weeks.

Contact a dedicated Retirement BDM


Simon Felice

0416 037 066


Vijay Mathew

0475 955 323

1Including Medicare Levy.

2When it is held for 10 years and the 125% rule (where each year’s contributions do not exceed 125% of the previous year’s contributions) is met.

Things you should know:

The information contained on this web page is of a factual nature only and is not intended to constitute financial product advice. It has been prepared without considering your individual objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual needs before making a decision based on this information. Please view our Financial Services Guide.

CommInsure Investment Growth Bond and Lifestream Guaranteed Income annuities are issued by The Colonial Mutual Life Assurance Society Limited ABN 12 004 021 809 AFSL 235035 (CMLA), a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (“CBA”). CommInsure is a registered business name of CMLA.

A Product Disclosure Statement (PDS) for the CommInsure Investment Growth Bond is available by clicking here and the Lifestream Guaranteed Income annuities PDS is available by clicking here, from your financial planner or by calling 1800 624 100 and should be considered before making any decision about the products.

Commonwealth Financial Planners are Representatives or Authorised Representatives of Commonwealth Financial Planning Limited ABN 65 003 900 169, AFSL 231139, a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.

The offers made in the CommInsure Investment Growth Bond PDS and the Lifestream Guaranteed Income annuities PDS are currently available only to persons receiving the documents within Australia. Applications from outside Australia will not be accepted.

Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.

CMLA is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.