FAQs
A funeral bond is a specialised investment which enables you to accumulate funds to meet future funeral expenses. An investment in a funeral bond is similar to a life insurance policy, whereby the benefit becomes payable on death. The benefits must be used to meet your funeral expenses. A funeral bond is an investment towards the cost of a funeral and by itself does not guarantee against rising funeral prices*.
*Source: Australian Funeral Directors Association.
Funeral insurance is not provided by FPM.
What is it?
Funeral insurance involves making a regular set weekly, fortnightly or monthly premium payment which is determined by the policy cover chosen.
The policy benefit is then generally paid in a lump sum to your beneficiary in the event of your death to provide a payment in respect of funeral costs.
What to be aware of:
- You may end up paying more in funeral insurance premiums than the actual value of your cover
- Failure to miss one premium payment can result in the insurance being cancelled and monies paid all forfeited
- In most instances you are unable to specify your preferred funeral director or funeral type.
Carefully read the relevant Product Disclosure Statement to ensure you understand all of the features, what will happen if you cancel your policy and how much you really will be paying.
Click here for a more detailed list of things to consider.
*Source: Australian Funeral Directors Association.
Contact us for a free brochure in which to record your preferred funeral arrangements.
You can invest any amount into your funeral bond. If you receive Centrelink benefits and wish this to be exempt from both assets test and deeming provisions of the income test, you cannot exceed the threshold, which is $13,500 for 2020/21 financial year. If you do not receive benefits, this threshold does not apply.
To make a claim you must:
- Download the Application for Funeral Benefit Fund form in the Forms section of our website, or call us on 1800 804 731 to be sent a copy.
- Complete the form and attach a Certified Copy of the full Death Certificate (issued by the office of Births, Deaths & Marriages). Also attach the invoice from the Funeral Director and the Receipt of payment.
- Post to Funeral Plan Management to GPO BOX 89, Adelaide SA 5001, email: funeral.plans@lifeplan.com.au, or fax to 1800 812 799.
- On receipt of all the correct required information, payment will be made by Funeral Plan Management within two business days.
What if I paid from my own pocket and want it reimbursed?
Funeral Plan Management will reimburse the amount on the receipt (or as much is stated in the policy) to the person requesting reimbursement, if the receipt states payment was received by a person of the same name.
What if the amount on the invoice is less than in the funds in the FuneralPlan Bond?
Funeral Plan Management will pay the amount due of the invoice to the funeral director and the difference to the Estate of the deceased.
What if the invoice is greater than the funds in the FuneralPlan Bond?
Funeral Plan Management can only pay as much as is in the Bond. For more information on this, please refer to the FuneralPlan Product Disclosure Statement.
If you receive a means-tested Government benefit and don't want this to affect your payments, the total amount you contribute should not exceed the 'exempt funeral investment threshold', which is $13,500 for 2020/21 financial year.
If you decide to enter into a pre-paid funeral contract with a funeral director, no maximum contribution applies.
There is a 'cooling off' period and during this time you can cancel your contract and get a refund of your investment. Please refer to our Product Disclosure Statement for specific details about the cooling off period. Funds can only be withdrawn for the purpose of meeting your funeral expenses.