We often forget that it’s the little things we do over time that make a difference.
This series of $10 tips give some simple ideas which you can use to improve your financial affairs for the cost of only two cups of coffee a week.
[heading]Tip 16: Consider Funeral Bonds[/heading]
Do you like the idea of setting funds aside to cover your funeral and maybe getting an increase to your age pension for doing so?
Unlike funeral insurance for which you pay a monthly premium and receive a lump sum at death, a funeral bond is an investment where you set your own fund aside, which is returned with interest to your estate to pay for your funeral upon your death.
Funeral bonds can be purchased with a lump sum or may be accumulated through a regular savings plan.
Importantly, the funds allocated to a funeral bond may be exempt under the Centrelink Asset Test, which means that if you invest $10 per week into a funeral bond, in 12 months’ time you will have reduced your assessable assets by $520. This may increase your age pension benefit.
How does it work?
Funeral bonds are investments specifically designed to set funds aside to cover your funeral expenses. Centrelink exempts certain funeral bonds, which means that you may receive a $1.50 p.f. increase for every $1,000 reduction in your assessable assets.
What do I need to do?
To test if a funeral bond is appropriate for you, give Debbie a call on (02) 4941 6000 to arrange an appointment.