What is a FUNERAL BOND?


A funeral bond is a specialized investment product that enables you to put money aside to meet future funeral expenses. Most have a ‘cooling off’ period of two weeks where your money may be withdrawn without any loss, but after that the bond is only payable to the person/organization you nominate upon your death. Most bonds are sold by funeral directors, who then send the investment moneys on to an organization who manages the funds.

Why invest in a bond?

Many of us have felt the emotional impact that losing a loved one can have. Likewise, many of us have also felt the financial impact. Funeral expenses can now run into thousands of dollars, adding unnecessary stress on your loved ones during this already difficult time.

Most of us plan ahead. We plan for holidays, marriages, the future education of our children, and of course for retirement. Dying is as much a part of life as being born, but most of us avoid funeral planning. Why? Because most of us spend little time thinking of our death.

There are many advantages in planning ahead:-

• Your own peace of mind knowing that you have faced this issue with responsibility, and that your family will be spared additional stress when they are grieving your passing.

• Your family, like most others, may have difficulty in finding sufficient funds within a few days to pay for your funeral.

• Pension concessions – up to $10,250 invested in a funeral bond is currently exempt from the Pension assets test and income test.

With a funeral bond, you can ensure that your funeral expenses are at least partially- and possibly fully covered. It provides you and your family with a sense of security, knowing that your needs and those of your family will be looked after.

If you are interested in investing in a funeral bond, contact your local funeral director who will be happy to discuss the matter with you.