Pre-paid Funerals and Funeral Bonds
In short, your choices are:
- prearrange your funeral in Brisbane without paying anything at this time; or
- prearrange and prepay your funeral saving family members the worry; or
- join a funeral bond or insurance plan to cover your funeral expenses.
First Forest recommends investing in a Funeral Bond. A Funeral Bond is different to insurance. It is like a separate bank account where you contribute as much as you feel comfortable into a safe and secure fund.
The money even earns some yearly interest (approx 3%), but it always remains your money and can only be used for funeral expenses. In addition, the Federal Government allows every Australian to invest up to $12,000 (which is way more than most of us would need to cover funeral expenses) and this money is currently exempt from the Centrelink Assets Assessment Test. If there are excess funds after the funeral account is paid, First Forest forwards these back to the Estate of the deceased.
Having researched most products available, First Forest recommends Sureplan Funeral Bond. Sureplan started amidst the old PMG (you may remember the Postmaster General) and now run a reputable and professional financial service specialising in funeral bonds. For those under 55 years of age, they also have an attractive insurance product. Download the Sureplan 2014 brochure here.