A celebration of your life can be expensive once you factor in burial or cremation fees, floral arrangements, funeral vehicles, clergy or celebrants, burial plot or cremation placement, wake expenses, music or organist’s fees. For many people, saving for these expenses in instalments over time is far more manageable than paying for the costs in one lump sum.
What is a Funeral Bond?
A funeral bond is a specially designed financial product to save for your future funeral costs, which can include floral arrangements, funeral vehicles, burial plot or cremation placement, and more. Saving for your funeral costs can ease the financial burden on your loved ones.
There are many benefits to a funeral bond:
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1. A tax paid investment
Tax on the income earned on your investment is paid within the Fund, you do not need to declare any income earned on your investment.
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2. Set aside savings for your funeral
Your savings are specifically set aside to cover your funeral costs and can only be accessed at the time of death.
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3. Maximise your pension
Funeral costs you pay up to $14,000 (as at 1 July 2022) do not count in your assets test for payments from Services Australia (i.e. Age Pension, Carer Payment or Disability Support Pension).
What can a funeral bond help you achieve?
A funeral bond is specifically designed to contribute towards your future funeral costs. It allows you to:
Why choose a Funeral Bond with Foresters Financial?
Choose a funeral bond with Foresters Financial for quality service and peace of mind, all while creating positive impact for Australian communities.
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Create positive impact in your community
Foresters Financial is committed to delivering lasting, positive change through our responsible investments.
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Committed support and service
With over 170 years’ experience in supporting people in their time of need, our friendly Australian-based service team is here for you every step of the way. Accepted claims are generally paid within 24 hours, either to your estate or your Nominated Funeral Director.
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Add our optional Away From Home cover for greater piece of mind
Get peace of mind knowing that transportation costs up to $3,000 are covered if you pass away while travelling more than 100km away from home, within Australia. Find out more.
Why choose a Funeral Bond with Foresters Financial?
Choose a funeral bond with Foresters Financial for quality service and peace of mind, all while creating positive impact for Australian communities.
-
Committed support and service
With over 170 years’ experience in supporting people in their time of need, our friendly Australian-based service team is here for you every step of the way. Accepted claims are generally paid within 24 hours, either to your estate or your Nominated Funeral Director.
-
Create positive impact in your community
Foresters Financial is committed to delivering lasting, positive change through our responsible investments.
-
Add our optional Away From Home cover for greater piece of mind
Get peace of mind knowing that transportation costs up to $3,000 are covered if you pass away while travelling more than 100km away from home, within Australia. Find out more.
Which investment option is right for you?
Our Funeral Bond has three simple investment options to make it easier for you to choose the right investment option to suit your goals. Each option has a unique risk profile and investment strategy. Please note, we recommend seeking professional advice regarding your individual circumstances and whether the investment option(s) are appropriate for you.
Our investment options:
Download the Investment Options and Asset Allocation extract, from our 1 July 2022 Product Disclosure Statement.
Unit Pricing
From 1 July 2022 we commenced daily unit pricing. Pricing is updated regularly – click here to download the most recent price.
For historical weekly unit pricing data, prior to 1 July 2022, click here to download.
Capital Guaranteed Performance
| Total Return |
Funeral Benefit Fund Taxable (after 1 Feb 2011) |
Funeral Benefit Fund Taxable (after 31 Dec 2002) CLOSED |
Funeral Benefit Fund Exempt (before 1 Jan 2003) CLOSED |
|---|---|---|---|
| 2018 | 1.14% | 1.14% | 0.90% |
| 2019 | 1.71% | 0.71% | 1.60% |
| 2020 | 1.00% | 1.00% | 0.40% |
| 2021 | 1.14% | 0.57% | 0.75% |
| 2022 | 1.00% | 0.50% | 0.35% |
| 2023 | 1.07% | 0.50% | 1.20% |
| 2024 | 1.50% | 0.50% | 0.75% |
Notes:
The Total Return is the sum of the bonus rate allocated and the tax benefit.
Past performance should not be taken as a guide to future performance.
Fees and Costs
View the Fees and Costs extract from our Product Disclosure Statement, from our 1 July 2022 Product Disclosure Statement.
Frequently asked questions
For more information, or to find the answers to other questions you might have, please download the PDS or view our additional FAQs.
Frequently asked questions
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Foresters Financial is a proud Australian member-owned investment and insurance financial services organisation with over 170 years of putting our members financial security first. Originating from a concern about the lack of financial and social support in times of extreme hardship, the Ancient Order of Foresters was established in Victoria in 1849. Foresters Financial is registered under the Life Insurance Act 1995 (Cth) and regulated by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC). Foresters Financial is registered as a public company limited by guarantee under the Corporations Act 2001 (Cth) and holds an Australian Financial Services Licence which authorises it to deal in, and provide general financial product advice on, a broad range of investment products.
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Funds held in the Foresters Funeral Benefit Fund may only be invested in a manner as specified in the Fund Rules and the Life Insurance Act 1995. Foresters Financial is also regulated by the Australian Prudential Regulation Authority (‘APRA’).
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The Capital Guaranteed option may declare an annual bonus each year as of June 30. The bonus is based on the investment earnings of the Fund, less income tax calculated at the corporate rate of 30%, management fees, fees and any other required transfers to statutory reserves. The Appointed Actuary makes a recommendation as to the annual bonus, which is subject to approval by the Board of Foresters Financial. Once allocated, bonuses form part of your capital guaranteed investment and contributes to increased future bonuses.
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If you change your mind for any reason, simply provide written notice of your intention to cancel your application and return your Certificate of Membership of Foresters Financial within 30 days from the date of issue or such other period permitted by relevant legislation.
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There is no limit to how much you may invest in a Funeral Bond. The amount should be reasonably commensurate to defray the costs of your funeral.
Funeral costs you set aside in the Bond up to $14,000* (as at 1 July 2022) do not count in your assets test for payments from Services Australia (i.e. Age Pension, Carer Payment or Disability Support Pension). If you do not receive benefits, this threshold does not apply.
* This limit is indexed on July 1st each year.
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In the event of your death, and dependant upon the beneficiary option you have selected, then upon receipt of satisfactory documentation your investment can be paid to either your legal personal representative (usually your executor) or the funeral bond Investor or your nominated funeral director to be applied towards your funeral expenses in such manner as considered appropriate.
Helpful resources for the Foresters Funeral Bond
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