KeyInvest Life Events Bond
The KeyInvest Life Events Bond is a low-cost and tax-effective investment bond designed to assist with building and managing wealth through every stage of life.
The KeyInvest Life Events Bond (LEB) is a low-cost* and tax-effective investment bond designed to assist with building and managing wealth through every stage of life.
The LEB may offer a tax-effective solution for a range of scenarios including:
- Estate planning.
- Investing for high income earners.
- Saving for children’s education or house deposit.
- As an alternative to superannuation or transition to retirement strategies.
* KeyInvest administration fee is 0.3% of the net asset value of the underlying fund referable to the investment bond/policy, with the exception of the KeyInvest Term Deposit option which has no administration fee. Underlying fund managers also charge a management fee. For information about the fees for each Investment Option download the Product Disclosure Statement at https://keyinvest.com.au/forms-resources
Investment Bonds such as the LEB have been an important part of financial planning strategies for decades.
Investment Bonds are fully tax-paid by the provider after a ten-year period with nothing to report to the ATO while invested or after ten years.
There are no withdrawal restrictions – funds are accessible anytime. If an investor withdraws funds before the end of the ten-year period, earnings (growth in the balance) will be assessed as income in the year of the withdrawal. A 30% tax-offset will apply to reduce tax already applied by the bond provider.
You can make changes, such as switch investment options, within the bond without breaking the ten-year rule and triggering a tax event.
KeyInvest has ensured the LEB remains one of Australia’s most flexible and cost effective Investment Bonds with enhanced investment choices across a broad range of asset classes and highly rated Investment Managers. The LEB is simple to use, flexible and has features that help provide financial solutions across many different life events.
The secret to investment bonds
10 Year Tax-Paid Rule
Fully tax-paid by KeyInvest after a 10-year period. No additional tax paid by the investor and nothing to report to the ATO.
30% Tax Rate
Taxed at the corporate tax rate of 30% which can be further reduced by tax credits.
125% Rule
Contribute up to 125% of the previous year’s contributions with no cap in the first year.
Retirement Planning
Investment bonds offer a flexible alternative to superannuation without age restrictions, work test rules, or restrictions imposed by super.
Contribute any amount within the first year, and access funds before retirement age.
Estate Planning
Ideal for estate planning, investment bonds are paid out tax-free upon death and have no beneficiary restrictions. When beneficiaries are nominated, they become a non-estate asset, protected from wills & disputes*. The customisable features offer control and certainty in how the proceeds are paid or transferred.
*Care is needed in NSW where there is a 3-year notional estate rule.
Tax-smart Investing
With a tax rate of 30%, investment bonds offer a tax-effective way to build wealth when super contribution caps have been reached, or as a superannuation alternative that allows access before retirement age.
Investing for Children
Whether it’s for education or a house deposit, investment bonds are a great way to provide a head-start for younger generations. Leverage KeyPlanner’s flexible features to control how and when funds are transferred and accessible to beneficiaries.
Bequest to a Charity
Investment bonds do not have beneficiary restrictions which make them an ideal way to bequest to a charity. Where a beneficiary is nominated, they become a non-estate asset which means they are protected from will and estate disputes and are paid out tax-free upon death.*
*Care is needed in NSW where there is a 3-year notional estate rule.
KeyInvest Ltd AFSL 240667 ABN 74 087 649 474 is the product issuer. All the information is general information and factual in nature only, is not intended to be financial product advice, and does not consider the investment objectives, financial situation, or needs of any individual. You should consider whether the information is appropriate, having regard to your objectives, financial situation and needs before acting on the information. You should obtain and consider the Product Disclosure Statement and Target Market Determination for this product (available at https://keyinvest.com.au/forms-resources) before making an investment. You should also seek professional financial advice before making an investment decision.
The level of the effective tax rate estimated over the long term is based on the existing legislative tax framework that applies to investment bonds. The actual level of tax incurred by the underlying fund referable to the relevant investment bond may vary and will be dependent on that fund’s actual level of earnings and investment and transacting profile. Past performance is not indicative of future performance.
KeyInvest is an independent member-owned mutual friendly society, dually regulated by the Australian Prudential Regulation Authority (APRA) as a life insurer, and the Australian Securities & Investments Commission (ASIC) as a financial product provider.
Founded in 1878 as the Independent Order of Odd Fellows South Australia (IOOFSA), KeyInvest has a long and proud history providing a range of services having operated as a credit union, retirement village developer and operator, and mortgage broker, but funds management has always been at the core.
KeyInvest merged with Australian Friendly Society Ltd in 2022, uniting two prominent friendly societies with strong footholds in the Australian funeral bond market. In 2023, KeyInvest became the first friendly society in Australia to raise additional Tier 1 capital which partially funded a 50% interest in non-bank lender, Keystone Capital Ltd.
KeyInvest is uniquely positioned to offer tax-effective wealth management solutions to support the unique financial needs of members, including Investment Bonds, Funeral Bonds and Wholesale Investments.
Craig has over 25 years in Senior Executive roles within the financial services industry across Australia and the Asia Pacific region, in some of Australia's largest organisations. His vast experience spans retail banking, enterprise lending, credit transformation, share investing, margin lending, private banking, and financial advice.
Dion has over 20 years’ experience in financial services and markets working in senior roles within the ASX and APRA environment and across corporate advisory, capital markets, M&A, funds management, investment management and corporate governance disciplines. Dion is a believer in embracing the lessons that history can teach us as well as the opportunities that emerging technologies can offer.
Gary has a distinguished career spanning over 40 years in the banking industry, with numerous senior roles across Financial Planning, Retail and Commercial Banking, and Small Business Banking. He has a collaborative leadership style, ensuring alignment of people with overall business objectives. Gary is a results-driven professional and adept at fostering cross-functional collaboration, providing strategic guidance to sales teams, and enhancing the customer experience and efficiency.
Tom has over 20 years’ experience in financial services with roles across Advice Management, Product Management, Business Development, Paraplanning and Research. Through his time in Advice, Tom nurtures a passion for helping clients to live their best life, focusing on building client-centric solutions that deliver exceptional, enduring value.
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The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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