The benefits of funeral bonds
By George Inggs
A funeral bond is really like a bank account. It attracts interest annually (3% in 2013 / 2014) which flows back into the bond and goes toward keeping up with the inevitable rises in funeral costs. The difference is that once the 30 day “cooling off” period has expired you cannot access your money. It must be used by the nominated person for the purpose of the funeral.
You can contribute amounts either as a lump sum, by regular payments or by ad hoc deposits. At the time Traditional Funerals apply to the fund manager (Sureplan Friendly Society) for this money (provided we are the nominated funeral director) and it is normally paid within 24 hours.
The two reasons most people opt for a funeral bond are:
- Your family don’t have the added stress of the financial burden at the time of your death
- It is exempt from the Income and Assets test for Centrelink and Veterans Affairs (providing you have not exceeded the maximum eligible investment threshold of $12000)
At Traditional Funerals, we also guarantee that should there be a surplus of funds to those required for the funeral costs, these additional funds will be returned to your estate. (This is our policy, but not necessarily the policy of most funeral directors).
So for all intents and purposes, the Funeral Bond is a simple, straight forward and effective way to plan for your future.
The pre-arrangement team at Traditional Funeral will be happy to meet with you and complete the documentation, and if you want they can provided a funeral estimate so you have some idea of how much is needed. We can be contacted by phone on 07 3888 6633, email at firstname.lastname@example.org or via our contact form.