INVESTMENT BOND PROVIDER OF THE YEAR Generation Life

A stable of investment bonds - to save for funerals and major expenses, such as a child's education, as well as its popular LifeBuilder - that offers significant estate planning features has helped Generation Life win for the fourth consecutive year.

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Here's how the investment bonds work.

Investors purchase investment bonds (once called insurance bonds), which are a single premium life insurance policy, with after-tax money. The life insurance company pays tax on the investment earnings. The tax rate is 30%, a decent saving for investors on high marginal tax rates of 45% or even 37%.

The 30% tax rate on Generation Life's growth investment options can be brought down to 12%-15% by offsetting capital losses against income as well as using franking credits.

For investors to receive the maximum tax benefits, it is best to hold an investment bond for 10 years, making it a long-term investment.