Funeral prepaid bonds in Australia are a way to save for funeral expenses, ensuring you don't burden your loved ones financially after your death. They are essentially a specialized investment where the benefits can only be used for funeral costs. These bonds are exempt from the Centrelink Income and Assets Test, offering a tax-effective way to save.
FUNERA PTY LTD do not offer “Prepaid Bonds” or “Prepaid Funeral Plans”
Key Features of Funeral Bonds:
Purpose: To accumulate funds specifically for funeral expenses, which can be used for a variety of costs, including the funeral itself, cremation, burial, and other related expenses. Investment: Bonds are a type of investment, often offered by funeral directors, friendly societies, or life insurance companies. Flexibility: Many bonds allow you to choose a funeral director, or your family can choose one after your passing. Exempt from Centrelink Tests: Funeral bonds, like prepaid funeral plans, are not subject to the Age Pension's assets test, meaning they won't affect your pension entitlement if you invest up to the allowable limit. No Early Withdrawal: The money in a funeral bond can only be accessed after the death of the nominated person, ensuring it's used for the intended purpose. Tax-Effective: Investment earnings and bonuses are typically exempt from personal income tax. No Age or Health Restrictions: Unlike funeral insurance, there are generally no age or health restrictions for investing in a funeral bond. Different Options: You can find funeral bonds that offer regular savings plans or allow you to choose from a range of investment options. Can be Jointly Owned: Funeral bonds can be in your own name, jointly with a partner (where the benefit is paid upon the death of the first owner), or assigned to a funeral director. Optional Extras: Some bonds offer optional extras, such as "Away From Home Cover" to protect against transportation costs if you pass away while travelling.Benefits of Funeral Bonds:
Peace of Mind: Knowing your funeral expenses are covered can be a source of comfort for you and your family. Financial Security: Reduces the financial burden on your family at a difficult time. Inflation Protection: The investment element of a funeral bond can help keep pace with rising funeral costs.Where to Find Funeral Bonds:
Funeral Directors, Friendly Societies, Life Insurance Companies, and Financial Advisers.FUNERA PTY LTD do not offer “Prepaid Bonds” or “Prepaid Funeral Plans”