Try GOLD - Free
INVESTMENT BOND PROVIDER OF THE YEAR Generation Life
Money Magazine Australia
|July 2025
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.
-
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.
This story is from the July 2025 edition of Money Magazine Australia.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Money Magazine Australia
Money Magazine Australia
Staying true to purpose
When it comes to super funds, Australians are spoilt for choice with 21 industry funds, 57 retail funds and a variety of public service and corporate funds to pick from. This breadth of choice also highlights how difficult it is to take out our top award of Best Super Fund - a title that goes to Hostplus.
1 mins
December-January 2026
Money Magazine Australia
WHAT SUPERANNUATION UPDATES DO PEOPLE NEED TO BE ACROSS?
Let's start with the fundamentals. From July 1, 2025, the superannuation guarantee rate increased to 12%, marking the final scheduled rise under current legislation.
1 min
December-January 2026
Money Magazine Australia
HOW CAN CONSUMERS GET A MUCH FASTER NBN SERVICE?
In September 2025, the NBN experience changed for millions of Australians. It got faster. A lot faster.
2 mins
December-January 2026
Money Magazine Australia
Make money from your home
From garden sheds to driveways, our homes could be hiding more earning potential than we realise.
3 mins
December-January 2026
Money Magazine Australia
HOW CAN CONSUMERS TAP INTO LOWER FEES?
Fancy an extra $5000 in your bank account? Walk this way. The common thread in this year's banking award winners' rollcall is the theme of higher savings.
2 mins
December-January 2026
Money Magazine Australia
HOW OUR WINNERS ARE CHOSEN
Hundreds and thousands of providers were examined to identify the award winners in the superannuation, managed funds, exchange traded funds, banking products and insurance categories in Money's Best of the Best 2026.
5 mins
December-January 2026
Money Magazine Australia
Crunching the numbers
Know the facts before taking the plunge with first- home buyer's schemes.
5 mins
December-January 2026
Money Magazine Australia
Profit and loss in the Pilbara
This solid miner is up against strong offshore headwinds.
3 mins
December-January 2026
Money Magazine Australia
Theory of adaptability
Whatever your thoughts about AI, it's here to stay and these are some of the humans doing great things with it.
2 mins
December-January 2026
Money Magazine Australia
Powerhouse of investing
Australian investors can choose from almost 400 exchange traded funds (ETFs). While this is great for investors, it can be hard distinguishing the merits of different fund managers. Our Best ETF Manager award sorts through the crowd, and this year, the top accolade goes to US-based BlackRock Investment Management.
1 mins
December-January 2026
Listen
Translate
Change font size