Reynolds Funerals understands that arranging a funeral bond offers families peace of mind to know that their affairs are in order and that their personal wishes will be met when the time comes. It is also important to know the specific features of a funeral bond before deciding if this type of investment is right for you. We hope that this Funeral Bond Fact Check clearly helps you to see how this type of investment offers financial security and flexibility.
The key points to remember about a Funeral Bond are:
- It is capital guaranteed so you never get back less than what you pay in plus vested bonus.
- The funds invested must be used to contribute towards funeral costs.
- It can be invested in joint names.
- No medical or age limits apply.
- Any excess in the funeral bond after the funeral is paid is returned to the Estate.
- Funeral costs at the time of death apply.
- As little as $25 per month can be invested.
- Up to $12,500 can be invested and this amount is deemed exempt from the assets test.
The key benefits of a Funeral Bond are:
- It helps to relieve the financial burden of the person’s family/Estate when the time comes.
- It earns interest vested annually which grows the investment. However, the interest accrued in a pre-paid funeral plan is received by the Funeral Director.
- Unlike a pre-paid funeral plan, the money in a funeral bond is fully portable. The funeral bond holder is not locked into using one Funeral Director.
- No entry fee or exit fee.
- No initial upfront payment required. A pre-paid funeral plan on the other hand is subject to GST and this has to be paid upfront to the Australian Tax Office.
- The investment is capital guaranteed.
- The funeral bond holder can choose whether or not they wish to pre-arrange their funeral with a Funeral Director.
Reynolds Funerals can help you to invest your funds securely in a funeral bond with Foresters Friendly Society. We can also arrange for your specific requirements to be set out in a funeral pre-arrangement booklet which can be kept with your important documents. Call us on 03 9579 2020 to make an appointment. Alternatively, you are welcome to book an appointment online on the ‘Planning Ahead page’ of our website.
