Financial Planning has become an important process for many and can assist in creating a sense of security for the future. During this process it is sometimes recommended that a ‘Funeral Bond’ or ‘Prepaid Funeral Plan’ be organised to assist in maximising Centrelink entitlements. These two terms describe the two main products available today which are both accepted by Centrelink. They are often seen as being the same but they are very different in how they work.
Fixed Price Funerals or Funeral Bonds, what is the best option for you?
Since 1925, Tuckers Funeral and Bereavement Service has been providing information to the Geelong and wider Community through personalised obligation free appointments and speaking engagements.
“…when entering into a funeral plan it is important to know the difference between the two main products available today. Gaining the right information maximises the opportunity for the consumer to achieve the best financial and emotional outcome says Alyson Burchell (Funeral Director at Tuckers Funeral and Bereavement Service).
Some Facts – Fixed Price Funerals & Funeral Bonds
• A ‘Fixed Price Funeral’ will lock in funeral costs at today’s prices – if the funeral arrangements are not added to, there are no future costs. A contract records what has been paid for and there is no limit to how much you spend on the funeral. Centrelink doesn’t require an annual review of the contract.
• A Funeral Bond currently allows you to invest up to $13,250. There is no agreement or guarantee your funeral is covered. Centrelink’s web page states that your bond must be assigned to a funeral director. Centrelink will require regular updates of your bond.
• Both products have no age limit or time restriction on them and are invested independent of the Funeral Director.
For more information about any of the topics covered in this story, or to book an appointment or presentation with your community organisation contact Tuckers Funeral and Bereavement Service on 5221 4788