Nobody ever wants to think about their death, but this is an inevitable part of life. When planning a funeral in Australia, you have several options to choose from. Regardless of whether you prefer a traditional service or direct burial, one thing is for sure—funerals are costly. With so many expenses involved in the process, funeral bonds in Australia serve as a great investment.
The burden of organizing funerals often goes to a person’s family or relatives when they pass away. However, you can avoid this by pre-planning your funeral. One way to do this will be through a funeral bond, which allows you to relieve your loved ones of the financial burdens.
What are Funeral Bonds?
Funeral bonds are managed investments that allow you to save up for funeral costs. They work like other investments in that you can pay a lump sum or regular instalments until you reach your bond value. Since funeral bonds are designed for funeral-related expenses, the money can only be withdrawn upon the account holder’s death.
Essentially, you can think of the funeral bond as an investment to hold your funeral savings. The funds cannot be touched until after death, so you avoid spending the money for other purposes. At the same time, it gives you bliss knowing that your loved ones will readily have the finances needed for your funeral.
Why Get a Funeral Bond in Australia?
Investing in funeral bonds in Australia comes with many advantages. Of course, the most apparent is that you can prepay your funeral costs and avoid leaving your loved ones with a substantial financial problem once you pass away. However, aside from this, here are other reasons why you should consider getting a funeral bond:
- Regulated Investment.
The Australian government regulates funeral bonds and the companies providing them, so you can ensure that your funds are secure.
- Grow Your Savings.
Funeral bonds are classified as an investment, which means you can grow your savings over time. The best thing about the bond is that they usually come with higher return rates than a regular savings account. Naturally, the rates will vary across providers, so make sure you compare plans before choosing one.
- Nominate a Funeral Director.
Another feature that funeral bonds offer is nominating a funeral director if you have a preferred one. However, you can swap this at any time.
- Pre-plan Your Funeral.
Investing in a funeral bond allows you to plan your funeral the way you want it. While the funeral bond only involves financial preparations, you can initiate conversations with family members about how you want them to proceed upon your death. It may not be the most comfortable topic, but it also helps to be open and transparent about your final wishes with them.
- Tax-paid Investment.
Funeral bonds are tax-paid investments, so any taxes earned from your income are already paid through the fund. You no longer need to include them in your annual tax return, which can be a massive weight off your shoulders.
Overall, funeral bonds are an excellent way to plan your funeral in Australia early—without necessarily diving into the specific preparations, which many find intimidating. If you are interested in this investment, you should start by researching funeral bond providers and looking through their products to find one that suits your needs the best.