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:
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).
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:
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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.
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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.
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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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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.
Capital Guaranteed Performance
Capital Guaranteed Investment Performance
(Financial Year Ended June 30th 2021)Bonus Rate² Tax Benefit³ Total Return⁴ Declared Bonus¹ 0.80% 0.34% 1.14% Capital Guaranteed Investment Performance 2 Years 3 Years 5 Years Performance History (total return) 1.07% 1.29% 1.39% Unit Pricing Performance
Date Sustainable Growth High Growth 12 November 2021 $1.008588 $1.014234 $1.024838 5 November 2021 $1.009795 $1.013547 $1.023197 29 October 2021 $0.996769 $0.997281 $1.004602 22 October 2021 $0.998865 $1.001736 $1.006199 15 October 2021 $0.994762 $0.997541 $0.998647 8 October 2021 $0.991603 $0.996143 $0.996827 1 October 2021 $0.988214 $0.993280 $0.991354 24 September 2021 $1.002495 $1.005866 $1.007350 17 September 2021 $1.006995 $1.011120 $1.013850 10 September 2021 $1.006003 $1.009427 $1.012060 3 September 2021 $1.009361 $1.012040 $1.016406 27 August 2021 $1.006836 $1.011620 $1.015221 20 August 2021 $1.006440 $1.011492 $1.014548 13 August 2021 $1.003951 $1.007227 $1.009556 6 August 2021 $1.002308 $1.003638 $1.007386 30 July 2021 $0.997050 $0.998435 $0.998772 23 July 2021 $1.000000 $1.000000 $1.000000 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. 1.50% Annual fee of 1.50% charged on the average balance of the Funeral Benefit Capital Guaranteed Fund net assets. Marketing assistance may be provided to funeral directors from Foresters Financial’s management fees. No commission payments are paid. 1.40% Annual fee of 1.40% charged on the average balance of the Funeral Benefit Sustainable Fund and Funeral Benefit Growth Fund net assets. 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. 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
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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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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.
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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.
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Helpful resources for the Foresters Funeral Bond
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You can find additional resources in our Forms and Documents
