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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.
… 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.
The COTA Funeral Bond is favourably treated by Centrelink with contributions up to $13,250 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 $13,250 (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 $38.25 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 $13,250.
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 contact us on 1300 1300 50 to request a no obligation mailed information pack before you make your investment decision.