Funeral Bond FAQs

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.

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 $15,000* (as at 1 July 2023) 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.

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.