Benefits of investing in Challenger CarePlus

CarePlus may increase your Age Pension and reduce the costs of aged care

After investing in CarePlus, any Age Pension you receive may increase and the amount you pay for aged care may reduce.

CarePlus achieves this because:

• when you invest in CarePlus, you receive an instant reduction in the amount of your assessable assets considered for the Age Pension assets test; and

• only part of the income you receive each year from CarePlus is assessable income for the Age Pension income test.

Your assessable assets and income may also partly determine the costs of Government-subsidised care. So a reduction in your assessable assets and income may also reduce the amount you pay for aged care.

The assessable asset and income values for your CarePlus will be shown on the CarePlus payment quote available from your financial adviser or by calling us (see back cover of the PDS).

For further information on the social security treatment of CarePlus, speak to your financial adviser or visit the website shown on the back cover of the PDS.

To see if you can benefit from investing in CarePlus, speak to your financial adviser.

CarePlus can assist with estate planning

When you die, we will pay your nominated beneficiaries or estate, a lump sum death benefit equal to 100%* of the amount you invested in CarePlus.

You can nominate a single beneficiary or multiple beneficiaries to receive the lump sum amount (in equal or specified proportions).

Unlike a nomination in your Will that may be contested by family, a valid beneficiary nomination is binding on us; so you have certainty of who will receive benefits upon your death.

Nominating beneficiaries can also be beneficial if you do not want the death benefit to be held up by probate. Probate is a document issued by the Supreme Court after you pass away, which confirms the validity of your Will and legally appoints your executor. Probate can be a lengthy process and will often delay the distribution of estate assets to beneficiaries.

For further information on nominating beneficiaries, see Will my family receive anything back when I die?' on page 6 and Who will receive my Insurance benefits when I die?' on page 7 of the PDS.

*If the policy owner is a resident of South Australia at the time of investment, the death benefit will equal 100% of the amount invested less the amount of state stamp duty paid by Challenger on your investment in CarePlus (see page 11 of the PDS).

Investor suitability

CarePlus is designed for people receiving, or planning to receive, Government-subsidised aged care services (including both home and residential care), or who are living in an approved residential aged care facility.

What is CarePlus?

CarePlus is designed for people receiving, or planning to receive, Government-subsidised aged care services.

CarePlus provides fixed monthly payments for the lifetime of the person requiring aged care (to assist with the ongoing costs of care) and returns 100%2 of the amount invested to their nominated beneficiaries or estate when they die.

CarePlus is comprised of two products:

1. CarePlus Annuity (see page 5 of the PDS); and
2. CarePlus Insurance (see page 7 of the PDS).

By investing in CarePlus, you are investing in both the Annuity and Insurance.

After investing in CarePlus, any Age Pension you receive may increase and the amount you pay for aged care may reduce (see page 3 of the PDS).

The regular income we agree to pay, and the death benefit, is guaranteed by us regardless of how investment markets perform - giving you peace of mind.

CarePlus - two products in one

CarePlus is a combination of two separate products, which together provide the CarePlus features. By investing in CarePlus, you are investing in both the CarePlus Annuity and CarePlus Insurance.

CarePlus Annuity

Pays you guaranteed income for life, regardless of how long you live or how investment markets perform. It has a withdrawal value and a death benefit for a period based on your life expectancy.

For more details, see page 5 of the product PDS.

CarePlus Insurance

When you die, tops up your CarePlus Annuity death benefit so that your nominated beneficiaries or estate receive a lump sum death benefit that in total equals 100%4 of the amount invested into CarePlus.

For more details, see page 7 of the product PDS.