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Funeral Bonds

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Don’t leave your family with the financial burden of paying for your funeral. Plan ahead with the COTA Funeral Bond and enjoy peace of mind knowing your family can focus on more important issues like paying tribute to your memory.

Reasons to choose COTA Funeral Bonds

  • removes the financial burden from your loved ones
  • a funeral BOND, not funeral insurance
  • no age or health restrictions
  • Individual or joint ownership is permitted
  • no contributions restriction
  • investments up to $12,500 usually exempt from the Centrelink Asset and Income tests meaning you may qualify for a higher pension

What is a Funeral Bond?

… and how is it different to funeral insurance? The COTA Funeral Bond is an investment designed to help meet your funeral expenses and you are guaranteed a payout when the time comes. With some funeral insurance plans, you can end up paying more in premiums than the value of the cover and if you cancel the insurance, you will end up with nothing. Funeral bonds are a safer and more cost-effective option for covering your funeral costs.

COTA Funeral Bond

features and benefits …

  • savingssavings plan
  • paidtax paid investment
  • padlockcapital guaranteed
  • fund-managementprofessional fund management
  • walletstart small
  • cashCentrelink benefits

Taxation benefits

The COTA Funeral Bond is favourably treated by Centrelink with contributions up to $12,500 generally exempt from the Assets and Income tests. As a result you may qualify for a higher Age or DVA pension. The potential pension benefits apply under current legislation that, up to $12,500 (indexed annually) is treated as an asset exempt from Centrelink’s income test, assets test and deeming provisions. This can result in an increased pension entitlement.

For couples it may be best to take out individual Funeral Bonds as both investments will be exempt from the income and assets test. This can result in an increase to your pension of $37.50 per fortnight for the couple. You can hold up to two Funeral Bonds, individually or jointly, and still qualify as an exempt asset for Centrelink purposes, so long as the combined original investment amount does not exceed $12,500.

How your COTA Funeral Bond will be paid

Benefits can be paid either to the estate or direct to a Funeral Director. Benefits can be paid quickly (normally within 10 working days) and there is no need to wait, for sometimes lengthy periods, for Grant of Probate. This can assist family in the quick payment of a funeral account – in some cases Funeral Directors may offer discounts for quick payment. Any surplus that remains after payment of the funeral account will be paid to the estate.

This information is provided as a summarised overview of the Funeral Bond product. Please read the full Disclosure Statement before you make your investment decision.

Find out more

Call our friendly staff on 1300 1300 50 and we will post you a no obligation information pack.

 

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