Funeral Bonds
If you’d like to sort out your funeral in advance, and take some of the decisions and cost off your family’s plate, a funeral bond is worth knowing about.
Planning your funeral
None of us know when, but we do know it’ll happen. Planning ahead means you get to decide what you want and write it down, so the people you leave behind aren’t left guessing at a time when they’re grieving.
Some things you might think about:
- Cremation or burial: which would you prefer?
- Coffin or casket: a Daisybox, woven wicker or something else?
- Service: a funeral with your person present, a memorial after the cremation, or nothing at all?
- Location: under a tree, in a park, beside a river, at your favourite club… wherever means something to you.
- Transport: a van, a ute, a motorcycle and sidecar?
These are your choices. Your funeral doesn’t have to look like anyone else’s.
Funeral bonds vs funeral insurance
Once you’ve worked out what you want, you can choose to pay for it in advance with a pre-paid funeral contract and a funeral bond. That’s a very different thing to funeral insurance.
Funeral insurance sells you on what ‘could’ happen. But death isn’t a ‘could’, it’s a ‘will’. You pay premiums week after week, and if you stop paying, you can lose your cover. Over the last few years I’ve met plenty of people with funeral insurance, and only a few have paid in less than their family will get back. One couple had spent close to $40,000 between them for a $17,000 payout each. It makes me sad and mad.
A funeral bond is a fixed amount, held as a capital-guaranteed investment. You can pay it as a lump sum or in instalments, and once it’s paid, that’s it. No ongoing premiums. Your funeral is planned, paid for and secured at today’s prices, however far away it is.
Our funeral bonds are held with Australian Unity. Because a bond can affect things like means-tested pensions, it’s worth talking it through with a financial adviser or Centrelink first.
What can be pre-planned?
Pretty much anything we’d normally arrange: a simple direct cremation, a burial, a funeral or memorial service, your choice of coffin or casket and anything else that matters to you. If you already have a burial plot, we’ll work with that. If not, the cemetery side can be included too.
What if I change my mind?
Pre-paid funeral contracts in Queensland have a cooling-off period. Your contract explains how cancellations work, including any cancellation fee, so please read it carefully before you sign.
What happens to the money?
The money is held by Australian Unity, not by us. If Rest couldn’t provide the funeral as agreed, the funds would still be available for your funeral elsewhere, subject to the terms of the contract. Either way, your family won’t have to rely on remembering what you wanted or finding the money when the time comes.
Do you even need one?
Honestly, not always. If there’s money in your bank account when you die, your bank will usually pay funeral expenses directly when they receive the invoice. A bond is one option, and it’s worth weighing up against your own situation.
And planning ahead doesn’t mean deciding every detail today. It can be as simple as starting a conversation about what matters to you. If you’d like to talk it through, get in touch. No assumptions, no pressure.