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About the Investment Growth Bond

Features

  • It’s a ‘tax-paid’ investment. CommInsure pays the tax on earnings at the current company tax rate of 30 per cent. This can be reduced further by imputation credits
  • Earnings generally don’t have to be declared in your tax return, unless you make a withdrawal within the first 10 years
  • If you do make a withdrawal in the first 10 years, some or all of the earnings must be declared in your tax return. You may be able to take advantage of the 30 per cent tax offset
  • Profits on additional contributions, which satisfy the 125% rule, don’t have to be invested for the full 10 years to acquire the tax-paid status
  • Investment switches and withdrawals from the Bond can be made without the worry of personal capital gains tax
  • Children can invest in a more favourable tax environment given that earnings are taxed at 30 per cent

Profits on additional contributions are also tax free after the first 10 years. Invest up to 125 per cent of the previous year's contribution to take advantage of this benefit.

You can nominate to have one or more beneficiaries to receive the proceeds of your investment in the Bond tax free upon the death of the last surviving life insured.

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.

This means that in the case of the death of the last life insured you can have a guaranteed amount that will be paid on withdrawal of this investment.

Under the terms of the Death Benefit Guarantee, we guarantee to pay the higher of:

a) The cash value of the Bond; or

b) The lesser of the Net Contribution Value and the Maximum Amount.

The Net Contribution Value is the total value of all deposits less any withdrawals that have occurred during the life of the policy and less any Switching fees, Withdrawal fees and Adviser Service Fees deducted during the life of the policy.

The Maximum Amount is $1 million or such other amount that we advise you in writing.

To qualify for the Death Benefit Guarantee, the youngest Life Insured on the policy must be less than 85 years of age at the policy commencement. While the policy remains in force, the Death Benefit Guarantee will continue to apply until the 99th birthday of the last surviving life insured.

  • Children as young as 10 years of age can invest with parental/guardian consent.
  • An adult can set up a child advancement policy on behalf of a child under 16 years of age with ownership of the Bond transferred to the child at a set age.

Investment choices

The Bond offers the potential for competitive after-tax returns through a choice of nine investment options:

  • Four multi-sector investment options that invest in a range of asset classes
  • Five single-sector investment options

You can tailor your own diversified investment portfolio by investing in a number of single-sector investment options. Guarantees are provided by us for four of the investment options.

Investment Options

What is guaranteed?

NC - Cash

The unit price will never fall. This means any rise in the unit price since the units were purchased is also guaranteed.

NC – Global Fixed Interest

If you withdraw or switch units out of this investment option after they’ve been held by you for at least two years, the unit price used to calculate the value of your withdrawal or switch will be at least equal to the price at the time you were allocated those units or switched into this option.

NC - Conservative

If you withdraw or switch units out of this investment option after they’ve been held by you for at least three years, the unit price used to calculate the value of your withdrawal or switch will be at least equal to the price at the time you were allocated those units or switched into this option.

NC - Diversified

If you withdraw or switch units out of this investment option after they’ve been held by you for at least three years, the unit price used to calculate the value of your withdrawal or switch will be at least equal to the price at the time you were allocated those units or switched into this option.

Except to the extent that has just been stated:

  • Your investment with us is not guaranteed
  • The value of your investment can rise and fall on a day-to-day basis

The current investment managers managing the investments within the Bond are shown below.  We reserve the right to change the investment managers at any time.

Asset Class

Investment Manager(s)

Cash

Colonial First State Global Asset Management

Fixed Interest

Colonial First State Global Asset Management
Monegy, Inc.

Global Listed Property*

CBRE Clarion Securities

Colonial First State Global Asset Management

Resolution Capital Limited

State Street Global Advisors Australia Limited

Alternatives

Colonial First State Global Asset Management

Australian Shares

Colonial First State Global Asset Management

International Shares

Aberdeen Asset Management Limited

Colonial First State Global Asset Management

State Street Global Advisors Australia Limited

*For the CommInsure multi-sector investment options with a Global Listed Property exposure, the managers are Colonial First State Global Asset Management and State Street Global Advisors Limited.

Returns and fees

  • Vary depending on a range of factors including the options in which you invest and the length of the time you’re invested
  • Monitor the progress of your investment with a yearly statement 
  • Monitor the performance of each investment option by viewing the performance report

  • No establishment, contribution, withdrawal or termination fees
  • Ongoing management fees apply
  • No fees for switching between investment options
  • Learn more by downloading the Product Disclosure Statement

Who is it suitable for?

From young children to grandparents, high income earners to pensioners, the bond suits a variety of investors' needs.

Investor need

Main benefits for you

Want certainty in estate planning and distributing your wealth?

  • Ability to nominate one or more beneficiaries
  • Beneficiaries receive the proceeds tax free
  • The Death Benefit Guarantee (where applicable) can provide certainty around the minimum amount that your beneficiaries will receive

Looking for a simple, tax-effective, long-term investment with little or no annual tax reporting and paperwork?

  • Earnings are taxed at 30%
  • No annual tax reporting unless you make a withdrawal

Looking for an investment with growth potential but some capital protection?

  • Four of the investment options available have different guarantees included

Seeking a long-term investment for your children or grandchildren?

  • Able to set up a Child Advancement Policy and within limits nominate when ownership transfers to a child
  • A range of investment options to choose from
  • You are able to access money at any time

Restricted by super rules?

  • No work test applies for contributions
  • No contribution caps apply
  • No restrictions on the number of policies you are able to establish
  • Able to access money at any time

In a higher tax bracket and looking for an investment that can lower your tax liability?

  • Earnings are taxed at 30%
  • 125% rule, this means that every year you can contribute 125% of the previous year’s contribution

Want a tax-effective income stream in retirement?

  • A 30% tax offset applies on the taxable portion of any money you withdraw

Exploring smart investment alternatives to suit your business needs?

  • Funds available when you need them
  • Little or no annual paperwork

How to invest

Forms

Need more information

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Term Deposits

Enjoy the security of an interest rate guaranteed not to change for the nominated term, so you know exactly what your investment’s worth.

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Talk to us

1800 624 100

8.30am to 6pm
(Sydney time)

Important information

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.

CommInsure Investment Growth Bond is 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. CommInsure is a registered business name of CMLA.

A Product Disclosure Statement (PDS) for the CommInsure Investment Growth Bond 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 product.

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 offer made in this PDS is currently available only to persons receiving this document within Australia. Applications from outside Australia will not be accepted.

 

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