Funeral insurance: How do they work?

Funeral insurance can cost you a lot more than the benefit your family will receive. And if you stop making repayments, you lose what you’ve already paid.

A funeral insurance policy gives your family a lump sum payment to pay for funeral expenses when you die.

You pay monthly or fortnightly premiums (ongoing payments) for a fixed amount of cover. Usually you can choose from $5,000 to $15,000 cover, which will be paid to your family when you die.

You are not saving for funeral costs with funeral insurance. You are buying insurance to meet those costs at some future date. You keep paying for funeral insurance until you die.

Not all funeral insurance plans are the same. Shop around and compare funeral insurance quotes before you sign.


Have you considered a funeral bond?

A Funeral Bond such as Sureplan Gold may be a better way to help your family pay for your funeral.



Sureplan Friendly Society Ltd (Sureplan) is an Australian-owned, specialist funeral fund provider with over 80 years of experience in funeral fund management.

At Sureplan, we understand that the loss of a loved one can cause enormous grief for the family and friends left behind.

With Sureplan funeral bonds, you can ensure financial hardship doesn’t also follow for your family. Because Sureplan is an experienced, member-owned funeral fund provider, you can trust that funeral expenses will be paid promptly and without fuss.



Why consider Sureplan Gold

Sureplan Gold has some important benefits for anyone considering commencing a funeral bond policy:



You can contribute up to $13,500 (as at 1/7/2021) without it being subject to the Centrelink or Department of Veterans’ Affairs Income and Assets Test – this is very relevant for retirees who are either receiving a part pension or who are just outside the pension entitlement threshold.



When entering an aged care facility an investment in Sureplan Gold may reduce your assessable assets and, therefore, reduce your accommodation costs. Sureplan recommends you receive independent financial advice prior to making a decision to invest in Sureplan Gold for this purpose.



Sureplan Gold only invests in government bonds, highly rated corporate bonds (senior debt instruments issued by the major Australian corporates and banks) and cash.



A bonus may be allocated to your policy annually. The allocation of bonuses is not guaranteed, and past performance is not necessarily a reliable indicator of future performance.



Any bonuses credited to your Sureplan Gold bond will not be required to be included as income for taxation purposes. Unless you assign your Sureplan Gold bond to a funeral director or cemetery/crematorium business, the accumulated bonuses paid as part of your funeral benefit will be treated as income in your estate.



Sureplan Gold has no entry, contribution or exit fees. However, if you die within 12 months of commencing your account any bonuses credited will be reversed.



Sureplan guarantees to pay the funeral benefit within 1 working day of receiving verification of your death from an independent source. If you die within 12 months of joining, any bonus previously allocated to your policy will not be paid.

Decisions to acquire or invest in Sureplan Gold should only be made after considering the information contained in the current Product Disclosure Statement (PDS). Applications to invest will only be accepted if made on an application form which is available on request. To obtain a copy of the current PDS and application form, please phone 1800 817 105 or download from


CASE STUDY: Bruce decides to buy a funeral bond

When Bruce decided to retire at 65, he wanted to get his finances in order. Apart from sorting out his will, he wanted to make arrangements to pay for his funeral.

Bruce decided to buy a Sureplan Gold funeral bond with some of his retirement savings. He knew the investment would grow over time. If he lived, for example, another 15 years, the bond can be claimed and put towards the cost of his funeral. He felt satisfied that he had sorted out his funeral costs and his family wouldn’t have to worry.



Do I have to Nominate a Funeral Director?

No! If you assign your policy you transfer ownership to the assignee. You have the option of simply appointing a family member (or your funeral director) as your nominee if you wish. Upon your death, Sureplan will pay the total of your policy funeral benefit to your nominee on behalf of your estate.

This can give your family greater control.

If a family member is the nominee they can use the money to get quotes before selecting a funeral director. Any money left over will be paid to your Estate to share with your beneficiaries.

Mayfair Funerals, Perth Western Australia



DISCLAIMER: Funeral Bonds advertised by eziFunerals are provided by Sureplan. Users of this site are subject to eziFunerals privacy policy and terms and conditions. eziFunerals may receive an advertising fee from Sureplan Ltd.


About eziFunerals

eziFunerals supports individuals and families cope with end of life decisions, death and funerals. We are an independent, Australian-owned and operated company. We are not part of any other funeral company.

Our member Funeral Directors operate in Sydney, Melbourne, Brisbane, Perth, Adelaide and Australia wide. They are chosen for their knowledge, quality, service, personalisation and experience. They go above and beyond, and will take the time to support the family.

For more information or to make contact with a trusted Independent funeral director, call eziFunerals on 1300 236 402 or visit