What is a Prepaid Funeral Plan?

When arranging a funeral for a loved one, there are so many questions that need to be answered, which can be emotionally and financially stressful. Burial or cremation? What music to play? Where should the ceremony be held? What flowers should be on display?

With a prepaid funeral plan, you can provide clear answers for all of these questions and protect your family against inheriting the costs associated with a funeral.

A prepaid funeral plan provides the security of a contract between you and your funeral director that specifies the details of your funeral service, at a fixed cost. By locking in at today’s prices, you know how much you need to pay now without further costs in the future.

There are many benefits to a prepaid funeral plan:

1. Your funeral costs are locked in

Having a funeral contract with your funeral director means you are able to lock in your agreed funeral service at today’s prices. The investment proceeds can only be used for your funeral costs.

2. Financially protect your loved ones

Setting aside funds for your funeral will remove the financial burden for loved ones and give you peace of mind.

3. Maximise your pension

Funeral costs you pay in advance normally 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 Prepaid Funeral Plan?

What can a prepaid funeral plan help you achieve?

A prepaid funeral plan will assist you in arranging and paying for your funeral in advance. Please note a prepaid funeral plan must be made in conjunction with a prepaid funeral contract, which is a formal agreement with your nominated funeral director.
  • Older couple in greenery

    Plan your funeral the way you want to be remembered secured by a contract with your preferred funeral director. You can pre-plan things like floral arrangements, music, funeral vehicles, burial plot or cremation placement, and more.

  • Placeholder image

    Let a funeral expert guide you through the decisions you need to plan your funeral your way, making the process easier for you and your loved ones.

  • Older couple in front of lake

    By paying for your agreed funeral contract now you are locking in today’s prices, saving you money in the future. A prepaid funeral plan takes away the financial burden for your loved ones.

  • Three male generations on a couch

    If you are receiving a part Age Pension, you can use the cost of your prepaid funeral plan to reduce your assets as part of the Services Australia assets test. Plus, there’s no limit to the amount you can invest in a Prepaid Funeral Plan.

What can a prepaid funeral plan help you achieve?

A prepaid funeral plan will assist you in arranging and paying for your funeral in advance. Please note a prepaid funeral plan must be made in conjunction with a prepaid funeral contract, which is a formal agreement with your nominated funeral director.
  • Placeholder image

    Let a funeral expert guide you through the decisions you need to plan your funeral your way, making the process easier for you and your loved ones.

  • Three male generations on a couch

    If you are receiving a part Age Pension, you can use the cost of your prepaid funeral plan to reduce your assets as part of the Services Australia assets test. Plus, there’s no limit to the amount you can invest in a Prepaid Funeral Plan.

  • Older couple in greenery

    Plan your funeral the way you want to be remembered secured by a contract with your preferred funeral director. You can pre-plan things like floral arrangements, music, funeral vehicles, burial plot or cremation placement, and more.

  • Older couple in front of lake

    By paying for your agreed funeral contract now you are locking in today’s prices, saving you money in the future. A prepaid funeral plan takes away the financial burden for your loved ones.

Ready to plan your funeral?

Why choose a Prepaid Funeral Plan with Foresters Financial?

Choose a Prepaid Funeral Plan with Foresters Financial for quality service and peace of mind, all while creating positive impact for Australian communities.
  • Enjoy 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.

  • Create positive impact in your community

    Foresters Financial products deliver lasting, sustainable change by helping to finance social and environmental initiatives in communities around Australia.

  • 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 Prepaid Funeral Plan with Foresters Financial?

Choose a Prepaid Funeral Plan 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 products deliver lasting, sustainable change by helping to finance social and environmental initiatives in communities around Australia.

  • Enjoy 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.

  • 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.

Prepaid investment options

Our Prepaid Funeral Plan has four simple investment options, each option having a unique risk profile and investment strategy.

Please note, we recommend seeking professional advice regarding your  circumstances and whether the investment option(s) are appropriate.

Our 4 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%

High 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 to high risk profile. The investment objective is to return CPI +4% over the long-term with an allocation to defensive assets (20%) and weighted towards growth assets (80%).
Risk Level: Medium to High
Low High
Type of Investment Allowable range
Minimum Maximum
Defensive Assets
Cash investments 0% 20%
Fixed Interest investments 0% 20%
Total Defensive Assets 0% 20%
Growth Assets
Equity 50% 90%
Property 0% 30%
Alternatives 0% 20%
Total Growth Assets 80% 100%

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’).

  • As you have entered into a prepaid funeral contract with a specific funeral firm, you are subject to the terms and conditions of that contract and as such, any changes to the contract, including altering your contracted funeral director, are subject to the specific contract conditions. As these can vary between firms, we suggest you discuss any changes and how they are to be made with your contracted funeral firm in the first instance.

  • No. Under current legislation there is no limit in the amount you can invest in our Prepaid Funeral Plan if your investment is made in conjunction with a prepaid funeral contract. The total amount will be exempt for the purposes of the assets test. For more information, please visit www.servicesaustralia.gov.au and seek specialist advice.

  • If your funeral director ceases to trade, the value of your Prepaid Funeral Plan is protected as the monies held in the Funeral Benefit Fund are in your name. There is also provision in the contract for the service to be conducted by another funeral director.
    Funds will only be released to pay for your funeral costs upon evidence that the service has been provided, and cannot be used for other purposes.