Adding some style to death
As of today, Australians can invest up to $10,250 into a funeral bond, which is the first indexed increase since new tax laws came into effect on January 1 this year.
That move doubled the amount an individual could invest in a funeral bond from $5,000 to $10,000.
Lifeplan Funds Management general manager of strategic development Matt Walsh said the increase would allow people to tailor their funerals with more diverse and unusual services.
“Funerals have always been very personal events, but more people are taking the time to play an integral role in planning their own funeral arrangements,” he said.
“From our experience, people want services that reflect specific aspects of their lives and personal tastes that remind their friends and family of who they were in life.”
Walsh said a typical funeral will cost about $8,000 but people do spend up to $50,000 for an extravagant service.
Lifeplan has two funeral bonds. A Prepaid Funeral Plan enables investors to fix the cost of the funeral and a Funeral Bond allows clients to contribute over a period of time to meet funeral expenses.
“For many people, taking care of the financial side of their own funeral is paramount,” Walsh said.
“They don’t want to leave the cost of their funeral with their loved ones — and we understand that entirely.”
He said using a funeral bond allows the investor to have control over funeral plans.
“Choosing what you want means knowing that all the details have been carefully considered and planned according to your wishes,” Walsh said.
“Nothing is left to chance — least of all the rising costs of funerals into the future.”
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