EST064 Funeral bonds: An alternative to funeral insurance (350 words)

This short article explains what funeral bonds are, the benefits of investing in them, and how they are treated by Centrelink.

There are many alternatives to taking out a funeral insurance policy to pay for your last big expense in this world. One such alternative is a funeral bond.

These bonds are available from friendly societies, life insurance companies and some funeral directors. A funeral bond is like a managed fund except that it can only be paid out upon the death of the owner. You cannot access the money earlier. The upside is that like other managed investments, it earns interest until you need it.