LifeIncome is simple and provides five key benefits to enhance your retirement:

• Generation Life guarantees income for life.
• Your income is investment-linked and you have the flexibility to switch between a range of investment options.
• Increases access to the Age Pension and other benefits for a broad range of investors.
• Generation Life is proud to offer a 6-month cooling-off period.
• Protect your loved one – by selecting the Reversionary Beneficiary option you automatically pass your LifeIncome over to your spouse with all the same
benefits.

Investment-linked lifetime annuities, such as LifeIncome, do offer some flexibility, such as investment choice and switching, however, to ensure that an income is payable for life, there are some restrictions as well:

• Other than in the first six months, you cannot withdraw your investment once it has commenced4.
• Unlike an account-based pension, your annual income will not vary during a Financial year.
• With an account-based pension, you can vary your income at any time (subject to minimum income requirements). In LifeIncome, your first year’s income is determined at the commencement of LifeIncome and can rise and fall from one year to the next dependent on the performance of your chosen investment option(s).

The other income stream to consider is the Age Pension, if you qualify. Many Australians supplement their own savings by accessing the Age Pension and associated social security benefits. Money invested and income paid from LifeIncome is treated concessionally under the assets test and income test and may make you eligible for some or more of the Age Pension sooner than you otherwise would be. The amount of Age Pension you receive can change over time with indexation, but can also rise and fall depending on your total assessed level of assets and income.

LifeIncome owner
LifeIncome is a life insurance policy and the policy owner of LifeIncome (you) is the life insured. The life insured must be a natural person. LifeIncome can only be commenced by an individual. The policy owner has full ownership and switching rights. The policy owner can choose to nominate a spouse as a Reversionary Beneficiary who becomes the policy owner in 
the event of the original policy owner’s death.

Income for life

LifeIncome pays a regular income for as long as you live. You can include your spouse in your LifeIncome and LifeIncome will pay a regular income for as long as you live and following your death, for as long as your spouse lives. In this instance your spouse is known as a Reversionary Beneficiary.

Income guaranteed for life

You are guaranteed to receive income for life. You are guaranteed to receive the income that is determined by the Annual income reset process each Financial year. What isn’t guaranteed is the level of income which can rise and fall from one year to the next because LifeIncome is investment-linked. 

Investment earnings within LifeIncome are tax-free. There are tax benefits on your income payments too

Any earnings on LifeIncome are tax-free while they remain in your account, regardless of your age. This is an advantage LifeIncome has over non-retirement phase superannuation accounts and investments outside superannuation. You also receive the benefits of any franking credits that may arise. In addition, LifeIncome income payments are tax-free in your hands if you are using your superannuation and are at least 60 years old. In all other cases there are tax concessions on your regular payments.

Potential Age Pension benefits (Applicable also to veterans’ Service Pension)

Potentially access or improve Age Pension entitlements because 40% of regular payments and 40% of your investment amount will be exempt from the income and assets tests, respectively. The assets test exemption increases to 70% at age 84, or after five years from the date of commencement, whichever is the later.

Investment choice

We offer a range of 23 investment options under this PDS to which you can allocate your LifeIncome. You can combine any number of investment options within the one LifeIncome.

Investment choice switching

You can generally switch between the investment options at any time with no switching fee (however buy/sell spreads apply). 

Commence LifeIncome with superannuation or non-superannuation money

You have the option to start a LifeIncome with money from your superannuation or your personal savings. If you are using money from your superannuation, you must have unrestricted access to your superannuation. If you want to invest with both superannuation money and personal savings, you will need to commence a separate LifeIncome for each source.

LifeBooster

LifeBooster is a rate used to calculate your starting income and enables you to receive more income in the early years of your investment. The effect of using LifeBooster is that your  starting income is higher than what itotherwise would have been. You have a choice of two LifeBooster rates. You select your LifeBooster rate when you commence LifeIncome. Your LifeBooster rate cannot be changed after commencement.

6-month cooling-off period

If you change your mind within the first six months of the commencement of your LifeIncome, you can withdraw your investment. After the 6-month cooling-off period expires you can no longer withdraw your investment from LifeIncome.

Death Benefit available

A lump sum Death Benefit is payable to your nominated beneficiaries or estate if you pass away during your Death Benefit Period

Monthly or fortnightly income payments

Monthly income is paid on the 15th day of each month. Where the 15th day is not a Melbourne business day, you will be paid on the preceding business day. Fortnightly payments are made in line with the Centrelink payment schedule.

1 July annual income reset

Your annual income is reset at the start of each Financial year, based on the unit price of your chosen investment option(s). Your annual income can rise and fall from one year to the next.