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All you need to know about funeral bonds

All you need to know about funeral bonds

After your passing, the last thing you’d want is to burden your loved ones with difficult decisions and financial stress. One proactive way to ease their burden is by investing in a funeral bond which enables you to set aside money specifically for covering funeral expenses. A funeral bond ensures that your final arrangements are taken care of without imposing financial strain on your family.

At Heritage Brothers Funeral Services, we offer funeral bonds that are designed to meet your individual needs. We’re also here to guide you through every important decision, ensuring all aspects are taken care of. 

What is a funeral bond 

A funeral bond is a tax paid investment to enable you to set aside money that can only be used to cover funeral costs. It involves making regular contributions or a lump sum payment into the bond, which is invested and grows over time. 

When the time comes, the funds from the funeral bond can be used to pay for funeral-related costs, such as burial or cremation, ceremony expenses, and other associated fees. Funeral bonds are often tax-effective and can provide peace of mind by ensuring that funds are available for funeral expenses when needed.

Benefits of a funeral bond

Not means tested

The income earned from your investment is not required to be declared for tax purposes.

An easy way to save for funeral costs

With the rising cost of living it can be hard to save for funeral costs. Funeral bond investment proceeds can only be released after your passing to pay for your funeral expenses. Any extra funds will be paid to your estate or to the investor if the bond was taken out by someone other than you. 

Maximise your pension

There is a Funeral Bond Allowable Limit. Funeral bonds up to $15,000 don’t count in your assets test for payments from Services Australia, including age pension, carer payment and disability support pension. 

Who can invest in a funeral bond? 

Single or joint policy

Funeral bonds can be in the name of one or two individuals. With a joint policy, upon the death of the first of the joint policy holders, the Total Investment Payable will be paid out in full to meet their funeral expenses. The surviving joint policy holder will then have to enter into a new Bond in order to meet their future funeral expenses.


You can take out a bond in your name, selecting another person as the life insured (family member or friend). 

Power of Attorney

If you’re appointed a Power of Attorney, you can take a bond on behalf of the donor – the person who has appointed the POA. 

Life Insured

This is the person who is being insured on the policy. If no Life Insured is selected then the life to be insured will default to the policy owner. An investor must select a different person to be the Life Insured otherwise they will become the Life Insured.

Beneficiary options

With funeral bonds you have the option to nominate or not to nominate a funeral director. If you have nominated a funeral director you can change this any time prior to your passing. If you haven’t nominated a funeral director it’s important to ensure your family are aware of your final wishes. 

How to invest in a funeral bond

Funeral bonds can be accepted as one-off or ongoing instalments, BPAY, deposit or Electronic Funds Transfer (EFT), direct debit from a bank account or a cheque. Cash isn’t accepted. The initial contribution is $100, 

At Heritage Brothers Funeral Services, we’re committed to providing compassionate and comprehensive funeral planning services. Contact us today to learn more about pre-paid funerals and how we can help you plan for the future with peace of mind.