Funeral bonds explained
Funeral bonds
What is a funeral bond?
A funeral bond is a dedicated investment used to set funds aside for future funeral costs. It allows you to contribute money over time, with the balance held in your name until it is needed.
Funeral bonds in Australia are commonly used by people who want financial preparation with flexibility, rather than committing to a fully prepaid funeral.
Who are funeral bonds suitable for?
Funeral bonds may suit people who:
- Want to prepare for funeral expenses without locking in details
- Prefer flexible contributions over time
- Are planning ahead but not ready for a prepaid funeral
- Want to keep financial arrangements simple
They are often used alongside a pre planned funeral, where wishes are recorded separately from financial arrangements.
Funeral bonds at H Parsons
At H Parsons, funeral bonds are facilitated through Foresters Financial, a trusted and regulated Australian provider. This structure ensures funds are managed in line with regulatory requirements and are available for funeral expenses when needed, while remaining in your name until that time. Independent financial advice should be considered, as individual circumstances vary.
Key benefits of a funeral bond
A funeral bond allows you to:
- Set funds aside for future funeral expenses
- Retain flexibility over how the funds are ultimately used
- Keep your legacy simple and tax‑smart
The bond accumulates over time and can be used toward funeral costs when required. This option suits people who want to plan financially with flexibility rather than locking into a fully prepaid funeral.
How funeral bonds and
prepaid funerals differ
Funeral bonds and prepaid funerals both help with future funeral costs,
but they work in different ways.
Some people start with a funeral bond and later transition to a prepaid funeral. Others keep these arrangements separate. Both approaches are valid and depend on personal preference.
Funeral bonds and Centrelink
Amounts invested in an eligible funeral bond are generally exempt from assets testing for certain government benefits, such as the Age Pension and aged care assessments, up to allowable limits.
Because Centrelink rules and entitlement assessments vary depending on individual circumstances, it is recommended that you confirm details with Services Australia or seek independent financial advice.
How funeral bonds work
step by step
Open a funeral bond through an approved provider
Make an initial investment and optional additional contributions
Funds accumulate over time in your name
The bond is applied toward funeral costs when required
This structure allows you to prepare at your own pace, without ongoing payment obligations.
Funeral bonds and funeral payment planning
Some people consider funeral bonds as part of broader funeral payment planning, alongside options such as prepaid funerals or payment plans.
A funeral bond does not require regular payments to remain active, and funds are not forfeited if contributions stop. This is different from some funeral insurance or payment‑based products.
Key takeaways about funeral bonds
- Funeral bonds allow you to set funds aside for funeral expenses
- Funeral bonds in Australia are held in your name
- They offer flexibility compared to prepaid funerals
- Eligible funeral bonds may be exempt from certain Centrelink asset tests
- H Parsons funeral bonds are facilitated through Foresters Financial
Frequently asked questions about funeral bonds
A funeral bond is an investment used to set funds aside for future funeral expenses, with flexibility over contributions and use.
Yes. Funeral bonds are available in Australia and must be offered through approved and regulated providers.
No. A funeral bond sets money aside only. A prepaid funeral includes paying in advance for specific funeral services.
Eligible funeral bonds are generally exempt from assets testing for certain government benefits, up to allowable limits. Individual circumstances vary.
Yes. Funeral bonds do not lock you into specific funeral arrangements.
The accumulated funds are applied toward funeral costs at the time they are required.
Speak with our team about
funeral bonds
If you would like to understand whether a funeral bond is suitable for your situation, our team can explain how funeral bonds work, how they compare to prepaid funerals, and how they fit with funeral pre planning.