Compare the Best Funeral Bonds in Australia

What is a Funeral Bond?

A funeral bond is a special investment designed to help cover your funeral costs. The money you contribute grows over time and can only be used for funeral expenses.

Why Choose a Funeral Bond?

✅ Helps relieve financial burden on family

✅ Invested funds grow over time

✅ Can be exempt from assets tests for pensioners

✅ Flexible contribution options

This comparison guide focuses on five top providers—Foresters Financial, Australian Unity (FuneralPlan Bond), Generation Life (FuneralBond), Sureplan Gold, and Guardian Plan—evaluating their features, costs, investment options, and suitability, particularly for consumers who may prioritise cultural sensitivity and affordability.

Comparing the Best Funeral Bond Providers in Australia

1. Foresters Financial

• Overview: A member-owned organization offering tailored funeral bonds with a focus on flexibility and additional benefits.
• Key Features:
  • Five investment options: Capital Guaranteed, Conservative, Balanced, Growth, High Growth.
  • Optional “Away From Home Cover” ($120 one-time fee) for up to $3,000 in transport costs if death occurs over 100km from home.
  • No age or health restrictions; funds exempt from Centrelink assets test up to $15,500 (as of July 2024).
• Cost: Minimum $500 initial investment; no ongoing fees disclosed.
• Cultural Fit: Flexible nomination of funeral directors suits most families coordinating across regions or countries.
• Pros: Diverse risk options, travel protection, member-focused ethos.
• Cons: Higher-risk options may not suit conservative savers.
• Best For: Chinese consumers seeking customizable investments and travel coverage.

2. Australian Unity (FuneralPlan Bond)

• Overview: Managed by Lifeplan Australia (a subsidiary of Australian Unity), a trusted name with over 170,000 clients since 1984.
• Key Features:
  • Three options: Capital Guaranteed, Conservative, Moderate.
  • Tax-free annual bonuses; fast payout (2-7 days) with documentation.
  • No investment limit if means test doesn’t apply; exempt up to $15,500.
• Cost: Minimum $500; no entry/exit fees for Capital Guaranteed option.
• Cultural Fit: Assignable to any funeral director, supporting cultural preferences for specific rituals.
• Pros: Strong reputation, guaranteed option, quick claims process.
• Cons: Fewer investment choices; moderate risk may fluctuate.
• Best For: Families valuing security and a proven track record.

3. Generation Life (FuneralBond)

• Overview: A straightforward, tax-effective bond designed for simplicity and pension benefits.
• Key Features:
  • Single balanced investment option (30% max tax rate, paid by fund).
  • Regular savings plans available; transferable to any funeral director.
  • No age/health checks; exempt up to $15,500.
• Cost: Minimum $1,000 lump sum or $100 monthly; no withdrawal fees (funds locked until death).
• Cultural Fit: Flexible director choice aligns with cultural needs for tailored services.
• Pros: Tax simplicity, compounding growth, easy setup.
• Cons: Single investment option limits risk customization.
• Best For: Savers wanting a hassle-free, pension-friendly solution.

4. Sureplan Gold

• Overview: A conservative bond from a mutual insurer, prioritizing safety and steady returns since 1998.
• Key Features:
  • Invests in government/corporate bonds and cash; annual bonuses (not guaranteed).
  • Lump sum or $50+ regular deposits; exempt up to $15,500.
  • Benefits for aged care or asset-tested pensioners.
• Cost: No minimum disclosed; low entry barrier with small deposits.
• Cultural Fit: Simple structure suits most families focused on affordability and tradition over extravagance.
• Pros: Low risk, inflation-matching returns, pension advantages.
• Cons: Bonuses not guaranteed; less flexibility in investment style.
• Best For: Risk-averse planners seeking reliability.

5. Guardian Plan

• Overview: Backed by InvoCare, integrating bonds with prepaid funeral planning across 240+ locations.
• Key Features:
  • Capital-guaranteed bond; funds assignable to InvoCare funeral homes.
  • Flexible payments (lump sum or installments); exempt up to $15,500.
  • Locks in costs at today’s prices when paired with prepaid plans.
• Cost: Minimum varies by plan; typically $5,000+ for prepaid integration.
• Cultural Fit: InvoCare’s network includes directors familiar with cultural customs.
• Pros: Nationwide reach, cost certainty, trusted brand.
• Cons: Tied to InvoCare network; higher entry cost.
• Best For: Chinese families wanting integrated planning with cultural expertise.

Comparison Table

Key Considerations for Consumers

• Cultural Flexibility: Guardian Plan and Foresters Financial excel with networks or options supporting Chinese rituals (e.g., Taoist ceremonies, joss paper).
• Cost Efficiency: Sureplan Gold and Generation Life offer low-entry or regular savings, aligning with “thick care, thin funerals” values.
• Accessibility: Australian Unity and Guardian Plan provide robust support, while eziFunerals (not a bond provider but relevant) enhances director choice.
• Growth Potential: Foresters’ varied options and Australian Unity’s bonuses cater to long-term planning.

Which Bond Provider is Best?

• For Flexibility: Foresters Financial (diverse options, travel cover).
• For Reputation: Australian Unity (proven stability, quick claims).
• For Simplicity: Generation Life (easy, tax-effective).
• For Safety: Sureplan Gold (low risk, steady returns).
• For Integration: Guardian Plan (nationwide, prepaid synergy).

Why Nominate eziFunerals as Your Funeral Provider?

• Independence & Control Over Your Funeral Choices: Most funeral bonds require you to nominate a funeral director, so you lose flexibility in choosing services that align with your preferences and budget.
• Don’t Lock Out Your Family: By nominating eziFunerals, your family isn’t locked into a single funeral director, giving them the freedom to choose the best service at the right price.
• Less Stress for Your Loved Ones: By nominating eziFunerals, your family has a trusted guide to navigate the funeral process.
• Avoid Overpriced Funeral Costs: By nominating eziFunerals, you ensure that your funds are used wisely and transparently, without excessive markups or emotional pressure on your family to spend more than necessary.
• Simple & Secure Funeral Planning: By nominating eziFunerals, you also gain access to an easy-to-use online funeral planning platform.
• 100% Australian-Owned & Trusted by Families: eziFunerals is a 100% Australian-owned service that works for families not big funeral corporations.

FAQs

Q: Are funeral bonds safe?

A: Yes, they are held by reputable institutions and regulated by financial authorities.

Q: Can I access my money before I pass away?

A: No, funeral bonds are designed exclusively for funeral expenses.

Q: Do funeral bonds affect my pension?

A: In most cases, funeral bonds are exempt from pension assets tests.

Q: How can I find out if my parents had a funeral bond?

A: eziFunerals offers a tracing service for lost of missing funeral bonds.

Final Thoughts

Choosing the best funeral bond provider hinges on your goals. Foresters Financial offers the most flexibility, Australian Unity blends trust with efficiency, Generation Life simplifies saving, Sureplan Gold prioritizes security, and Guardian Plan ties into a broad funeral network. Providers with director flexibility (e.g., Guardian, Foresters) and affordability (e.g., Sureplan, Generation) stand out, ensuring cultural traditions are honored without financial strain. Review Product Disclosure Statements and consult a financial advisor to align your choice with your needs.

Note: Costs and thresholds reflect July 2024 data