A Venture by Ferns N Petals
Plan Ahead: The Concept of Funeral Bonds
05 October, 2020(0)Commentsuser

A Funeral Bond is a specialized investment for your future funeral expenses. A life insurance company or a friendly society will allow you to keep aside money for this specific time. It is similar to a trust account, which accumulates bonuses and becomes payable at the time of demise. The benefits can only be used for funeral expenses. 


Some of the features of funeral bonds are –

  • Money Should be held in an independently managed funeral fund.
  • The interest must re-invested into the capital.
  • The funds can be accessed only after the demise and can be used just for funeral expenses.
  • The funeral bond is not an assessable asset if you have assigned the fund to a funeral director for a fully prepaid funeral service and have a contract. 
  • You can contribute either by lump sum or monthly payments till you reach the selected value of the bond.


Some of the benefits of Funeral Bonds are –

  • You can start with small amounts and then make regular payments to suit your budget and circumstances.
  • This will save your family from distress in the future at an emotional time. You can also nominate a funeral service company and direct payments directly to them.
  • A funeral bond will relieve your family from the financial burden.
  • This will ensure your exact wishes are known.


Incase funeral costs are more or less than the investment, the company can issue an account or a refund for the balance. Another important thing to remember is that you may not be entitled to a refund if you decide to discontinue the bond.


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