What is a funeral plan?

A pre-paid funeral plan, is  choosing and effectively paying for your funeral in advance, providing financially for  funeral expenses you have carefully  considered and ,arranged in advance. The type and style of funeral you want is set out in a contract and paid for at an agreed price . the cost of the funeral  generally  is a fixed  guaranteed cost that ensure no further rises  are required in the future.

Important to note that  a funeral plan  is considered assigned to the funeral Director  and  is exempt from deeming threshold rules and is not considered an asset. 

The Funeral plan  Allowable Limit as at 1 July 2014 is $12,000 and is indexed in line with CPI  increases every new financial year. Funeral Plans are  exempt from assets test and deeming provisions of the income test, provided your investment does not exceed the applicable ‘exempt funeral investment threshold’.

Lastly and most importantly:

  • It gives instruction to your family about the funeral  you want exactly.
  • Provides for the full funeral costs regardless of the date of death.
  • You can choose the type of funeral you want ensuring your wishes are carried out correctly assisting your loved ones with a plan of what things should acre if your where to die.
  • Using a funeral plan creating Exemption  from Centre link assets test and deeming rules. May help qualify for age pension or part pension.
  • Funeral plans are sound financial planning tools that protect your family by fixing the price of your funeral, allowing flexible payment terms, maximizing your pension entitlements and setting a cap on the cost of your funeral.