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:

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.

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.

3. Maximise your pension

Funeral costs you pay up to $13,500 (as at 1 July 2021) do not count in your assets test for payments from Services Australia (i.e. Age Pension, Carer Payment or Disability Support Pension).

Watch: What is a Funeral Bond?

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:
  • Three generations of females on a Couch

    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.

  • Placeholder image

    A funeral bond investment is specifically designed to contribute towards your future funeral expenses. There are special measures in place to ensure that the money you save is only used for your funeral service, easing the financial burden for loved ones and giving you peace of mind.

  • Grandma hugging child at kitchen table

    A funeral bond up to $13,500 (as at 1 July 2021, indexed annually) does 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:
  • Placeholder image

    A funeral bond investment is specifically designed to contribute towards your future funeral expenses. There are special measures in place to ensure that the money you save is only used for your funeral service, easing the financial burden for loved ones and giving you peace of mind.

  • Three generations of females on a Couch

    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.

  • Grandma hugging child at kitchen table

    A funeral bond up to $13,500 (as at 1 July 2021, indexed annually) does not count in your assets test for payments from Services Australia (i.e. Age Pension, Carer Payment or Disability Support Pension).

For more information on how the Foresters Funeral Bond can support you and your loved ones, take the first step towards peace of mind by applying now.

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.
  • Create positive impact in your community

    Foresters Financial is committed to delivering lasting, positive change through our responsible investments.

  • 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.

  • 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 Funeral Bond 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.

Choose from our 3 investing options:

Capital Guaranteed

The investment objective is to return better than the Reserve Bank of Australia (RBA) cash rate by investing in mainly cash and fixed interest type investments that are low risk in order to support the capital guarantee. The investment strategy of the Fund is to invest in a diverse range of mainly cash and fixed interest assets with a low risk profile in order to provide a stable and consistent return to guarantee the capital.
Risk Level: Low
Low High
Type of Investment Allowable Range
Minimum Maximum
Fixed Interest Investments 0% 95%
Cash Investments 0% 100%
Mortgage Backed Investments 0% 5%
Australian Shares 0% 5%
Mortgages and Advances 0% 10%

Sustainable

The investment objective is to return CPI +2% over the long-term with an allocation to growth assets (40%) and weighted towards defensive assets (60%). The investment strategy of the Fund is to invest in a diverse range of defensive and growth assets with a low to medium risk profile; and in entities and/or investments that have high Environmental, Social and Governance (ESG) performance by: excluding entities and/or investments that are exposed to activities that carry significant negative ESG risks, particularly related to the environment; excluding entities and/or investments with business activities that are not social responsible investments; and targeting entities and/or investments with high ESG ratings, particularly related to the environment - as outlined in the Society’s policy on responsible investments.
Risk Level: Low to Medium
Low High
Type of Investment Allowable range
Minimum Maximum
Defensive Assets
Cash investments 0% 60%
Fixed Interest investments 20% 60%
Total Defensive Assets 40% 60%
Growth Assets
Equity 20% 50%
Property 0% 20%
Alternatives 0% 10%
Total Growth Assets 40% 60%

Growth

The investment strategy for this unit-linked investment option is to invest in a diverse range of defensive and growth assets with a medium risk profile. The investment objective is to return CPI +3% over the long-term with an allocation to defensive assets (40%) and weighted towards growth assets (60%).
Risk Level: Medium
Low High
Type of Investment Allowable range
Minimum Maximum
Defensive Assets
Cash investments 0% 40%
Fixed Interest investments 10% 40%
Total Defensive Assets 20% 40%
Growth Assets
Equity 30% 70%
Property 0% 30%
Alternatives 0% 15%
Total Growth Assets 60% 80%

Capital Guaranteed Investment Performance
(Financial Year Ended June 30th 2020)
Bonus Rate² Tax Benefit³ Total Return⁴
Declared Bonus¹ 0.70% 0.30% 1.00%

Capital Guaranteed Investment Performance 2 Years 3 Years 5 Years
Performance History (total return) 1.36% 1.29% 1.56%

1. The declared bonus rate applies to the Foresters Funeral Benefit Fund.
2. The Bonus Rate is calculated after deduction of ongoing management fees, expenses, taxes and any other required transfers of statutory reserves. Once the bonus rate has been allocated it forms part of the capital guarantee.
3. The Tax Benefit is a non-guaranteed maturity bonus that Foresters expect to pay as part of the funeral benefit
4. 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 other costs

The table below shows fees and other costs that you may be charged. These fees and other costs may be deducted from your account balance, the returns on your investment or the Funds’ assets as a whole. You should read all the information about fees and costs because it is important to understand their impact on your investment.

Types of fee or cost Amount How and when paid
Transaction Costs
Establishment Fee
The fee to set up your initial investment Nil Not applicable
Contribution Fee
The fee on each amount contributed to your investment Nil Not applicable
Commission Nil Not applicable
Exit Fee
The fee when the total investment is payable Nil Not applicable
Switching Fee¹
The fee for changing investment options Nil Not applicable
Management Costs
Management Fee
To cover the cost of administering the Fund. The Management Fee may vary from time to time in accordance with the Benefit Fund Rules. Marketing assistance may be provided to funeral directors from Foresters Financial’s management fees. No commission payments are paid. Additionally, if you select a unit-linked investment option a proportion of the management fee will be donated to the Foresters Financial Community Grants Account, helping enrich the communities in which we belong. 1.40% Annual fee of 1.40% charged on the average balance of the Funeral Benefit Capital Guaranteed Fund; Funeral Benefit Sustainable Fund; and Funeral Benefit Growth Fund net assets. The Management Fee is calculated and deducted on a monthly basis and is inclusive of GST (as applicable) less any input tax credits (including approximate reduced input tax credits) that we in the underlying investment options may be entitled to claim.

1. Your investment may incur transaction costs (buy/sell spread) which will be taken into account in the entry and exit price

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

  • 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.

  • 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’).

  • 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.

  • 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.

  • Where the Bond is unassigned either in single or joint names or in the situation where you have nominated a preferred funeral director, you can currently invest up to a maximum of $13,500*. Additional contributions over $13,500* may be made (if applicable) to cover the Away From Home Cover premium. * This limit is indexed on July 1st each year.

  • 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.