|
|
Have your questions answered to help you make an informed choice. Click on the area that concerns you for a list of questions.
- For answers about funeral planning generally...
- What is the difference between a prepaid funeral plan and a funeral bond?
A prepaid funeral is where you choose a Funeral Director, determine your requirements, agree on cost and enter into a formal agreement by paying for your funeral in advance.
A funeral bond allows you to invest up to $11,750, to contribute towards the cost of a funeral.
- What are the factors affecting the cost of a funeral?
When working out the cost of a funeral, various factors need to be considered and important decisions made. Click here to read more about the cost of a funeral.
- What is a Travel Protection Plan and why would I need it?
In planning your funeral requirements, you may also consider a Travel Protection Plan. This is a benefit payable if death occurs while travelling in Australia more than 70kms away from your funeral home and your normal place of residence is within 70kms of your funeral home. This also requires that you had not been holidaying or living away from your normal place of residence for a total of two or more months in the preceding twelve months (excluding any period in hospital).
- Which is more common, a burial or cremation?
Currently a cremation tends to be more popular (55% versus 45% for a burial). In areas where cremation facilities are common this percentage can be as high as 75%. Irrespective of what others might choose, you need to feel comfortable with your decision. A Funeral Director can help guide you in making this choice.
- Who is legally responsible for arranging a burial or cremation?
Legal responsibility rests with the Executor appointed under the Will of the deceased. You should make sure your Executor is familiar with and agreeable to carrying out your wishes, and is also aware of the details of your prepaid funeral plan contract or funeral bond.
- What if there is no Will?
If a person dies without a valid Will, usually the next of kin will have the right to apply to act as administrator of the estate and complete the funeral arrangements on your behalf.
- For answers about a prepaid funeral plan...
- How much money can I invest in a prepaid funeral plan?
The amount of money is determined directly by the costs associated with providing you with your funeral arrangements by a Funeral Director. Basically, the cost of your specified funeral determines the amount you invest. There is no limit.
- Who do I see if I am interested in organising a prepaid funeral plan?
Simply contact us and we will provide you with a list of participating Funeral Directors in your area.
- What happens if the Funeral Director I selected for my prepaid funeral ceases to operate?
In the event this occurs, you can select an alternative Funeral Director. The funds invested are held independently of the Funeral Director in a capital guaranteed investment and will still be available to meet funeral costs.
- Who has a record of my prepaid arrangements?
A copy of your contract, which details your arrangements at a fixed price (the contract), is held by yourself and the Funeral Director. It is important that you communicate to your family and friends that you have made these arrangements in advance.
- How is my prepaid funeral plan carried out?
A family member or personal representative simply contacts your chosen Funeral Director and the arrangements, as detailed in your contract, are carried out. Once the Funeral Director provides evidence to Funeral Plan Management (FPM) that the complete service has occurred, FPM will then pay the Funeral Director.
- I would like to arrange a memorial, can my prepaid funeral plan include this?
Yes. A memorial can also be pre-arranged. The type of memorial offered varies between cemeteries and crematoria and this is an aspect that you can research and determine as part of your prepaid plan.
- What if I change residence?
Generally your contract will specify the terms regarding interstate transfers and your Funeral Director can help ensure that any new arrangements suit both you and your family.
- What if I change my mind about a prepaid funeral plan?
A prepaid funeral plan is a legally binding contract so you need to make sure you understand the terms and conditions before you sign.
A prepaid funeral plan incorporates a "cooling off" period. It is during this time that you can cancel your contract and receive a refund of your investment. Please refer to our Disclosure Document for specific details about the cooling off period.
- Can I alter the terms of my prepaid funeral plan?
Yes, but it is subject to the agreement of your Funeral Director. Please remember however that if you alter your original agreement you may incur additional costs.
- For answers about a Funeral Bond...
- How much money can I invest in a funeral bond?
The maximum you can invest is $11,750, either as a single lump sum or as regular contributions.
- Who do I go to if I am interested in setting up a funeral bond?
Simply contact us and we will provide you with a list of participating Funeral Directors in your area.
- Can I turn my funeral bond into a prepaid funeral plan?
Yes, with the assistance of your chosen participating Funeral Director. They can organise for your funeral bond to be used in conjunction with a prepaid funeral plan.
- How will a funeral bond affect my social security entitlements?
A funeral bond investment up to $11,750 is exempt from Centrelink and Department of Veterans Affairs Income and Assets Test. Therefore, it will not be deemed part of your assets and can help maximise your pension entitlements, depending on your circumstances. More information can be found in the FuneralPlan Bond Disclosure Document.
- What if I change residence?
- What if I change my mind about a funeral bond?
A funeral bond is an investment owned by you. It incorporates a "cooling off" period during which time you can withdraw your money. Specific details about the cooling off period can be found in the Disclosure Document.
- Are my contributions tax deductible?
No, contributions may not be claimed as a tax deduction.
- Who holds my money? Is it safe?
Your money is held in a Friendly Society Capital Guaranteed Funeral Benefit Fund which is regulated by the Corporations Act 2001 and the Life Insurance Act 1995.
- Can I access my money in the funeral bond before I die?
No. You can only access your money during the cooling off period. Specific details about the cooling off period can be found in the Disclosure Document.
- My partner and I want to take out a joint bond. Is this possible?
Yes. Two people can own a funeral bond with a maximum limit of $11,750. If one of the joint owners dies then the surviving owner can elect to use the funds to pay for the funeral service.
If the surviving owner does not use the funds to pay for the funeral service then the ownership of the bond reverts to the surviving joint owner to pay for their funeral service. Should you wish to invest more than $11,750, you can take out individual bonds.
We hope you have found the answer to your question, if not, please contact us or Freecall in Australia 1800 804 731.
We invite you to download our Disclosure Documents or contact us for a free brochure.
The information provided on this site is not a personal security recommendation.
|
|
