What is the difference between a Pre-Arranged Funeral and a Funeral Bond?

A Pre-Arranged funeral is where you organise your funeral in advance. The type and style of funeral you want is documented in a contract and retained in our records. You do not need to pay anything, but you do need to be aware that the costs may rise over time

A Funeral Bond is where you invest funds into a Funeral Benefit Fund which are then used to cover the costs of funeral when needed. Any funds remaining after the funeral costs are deducted are returned to the estate, if there is a shortfall the remaining costs are covered by the Next of Kin / Estate. A funeral bond does not lock in prices at current day costs however it enables you to put aside funds which can go towards covering the costs of your funeral. You can also add additional funds to the Funeral Bond at any time up until the bond is redeemed.

Why invest in a Funeral Bond?

There are many benefits to investing in a Funeral Bond such as: –

• Investing in a Funeral Bond means that you are taking a pro-active step in ensuring the costs of your funeral are covered relieving your family of the financial burden.
• A funeral bond is exempt from the asset test provided it meets certain criteria
  • You hold no more that 2 funeral bonds
  • Your funeral bonds combined are under the Funeral Bond Threshold ($15,000 as at 1st July 2023)
  • You do not already have a pre-paid funeral
  • You have allocated your Funeral Bond to a Funeral Director
• Tax on the income earned on your investment is paid within the Fund. This ensures you do not need to declare any income earned on your investment.
• Your investment will be held independently with a government approved Friendly Society so your money is safe
• You can add additional funds at any time

What documents will I receive?

You will receive a contract which will outlines the investment made, you will also receive a copy of your Certificate of Membership which will confirm the investment with Foresters Financial.

What if I change my mind?

You have a 30-day period to consider your contract and change your mind if you wish. You may cancel your contract within the 30-day period by notifying Heritage & Heritage Funerals in writing. Your contract is cancelled, and you will receive a full refund.

 Can I redeem a Funeral Bond for money?

No once the funds are invested with the Friendly Society you cannot withdraw them or use them in any other way other than to pay for funeral expenses.

What happens if death occurs away from home?

For when you are temporarily away from home you can purchase a Travel Protection Plan as an addition to your Heritage & Heritage Funerals Funeral Bond. This covers the costs of transporting a deceased person back to our funeral home.

If you do not purchase the Travel Protection Plan and death occurs away from home your family will need to contact us and we will make the necessary arrangements for your safe transfer. These costs will then be part of the overall funeral costs towards which the Funeral Bond will be applied.

What happens if I move interstate?

If you move interstate you can change your nominated Funeral Director at any time by contacting Foresters Financial and completing a Change of Nominated Beneficiary Form.

Please note that the funds are required to stay in the secure investment you have arranged and can be accessed by the new funeral director at the time of the funeral.