Funeral Bond

The KeyInvest Funeral Bond is a simple financial solution to meet future funeral expenses. Investors have the choice in the underlying investment options to invest in either the Capital Guaranteed or diversified (unitised) Investment options.

A real benefit of forward planning this way is to alleviate or remove the financial burden and stress on loved ones at the time of the Investor’s passing. An investment in a Funeral Bond may also assist Investor/s eligibility for a higher rate of Centrelink/DVA pension (due to the Federal Government’s classification of a Funeral Bond as a sole purpose investment.)

Tax Benefits

  • Growth earnings of the Funeral Bond are internally taxed at a maximum of 30% and
  • the earnings do not form part of annual (assessable) taxable income.

Pension Benefits

Currently an individual investor can contribute up to $13,500* in a KeyInvest Funeral Bond and this amount is exempt from the age pension Income Test, Assets Test and deeming provisions. This may result in an increase of up to $1,053 in extra pension for an individual or for couples (double that amount) and a total increase of up to $2,106 when separate policies are taken out. To qualify, there are certain Centrelink conditions, so investors may either enquire directly with Centrelink or contact one of our helpful KeyInvest Client Services Representatives.

*(indexed annually by Government)

Additional advantages of using the KeyInvest Funeral Bond

  • If peace of mind is important to the Investor, then the advantage of choosing the Capital Guaranteed investment option is that the guarantee ensures the monies invested are protected from any market fluctuations over time
  • There are no restrictions on applying due to the age or health of the Investor
  • No contribution limitations, although the amount of the investment should not exceed future anticipated funeral costs
  • Individual or joint ownership is permitted
  • Regular savings plans are available
  • The Funeral Bond is a tax paid investment – so there is nothing to report to the ATO whilst invested (if lodging an annual tax return)
  • There is no requirement to nominate a Funeral Director when setting up a policy.

Investment Options

  • Capital Guaranteed Fund (APIR IOF0073AU)
  • Conservative Index Fund (APIR IOF5736AU)
  • Balanced Index Fund (APIR IOF4575AU)
  • Growth Index Fund (APIR IOF3293AU)

The KeyInvest Funeral Bond Capital Guaranteed option is managed by Janus Henderson (Henderson Group PLC) and the KeyInvest Funeral Bond diverse unitised options are managed by Vanguard (The Vanguard Group) on behalf of KeyInvest.

Payment of Benefits

It is important to note that current legislation does not permit Funds set aside in a Funeral Bond, to be released until evidence of a funeral has taken place ensuring the investment’s intended purpose is fulfilled.

When KeyInvest receives a claim on a funeral policy, the objective is to expedite the process as quickly as possible. To do this, it will be necessary for the Investor’s family or representative/s to provide all necessary documentation (including an invoice from the Funeral Director) to KeyInvest. Once received, payment of the claim may be made within 7 business days directly to the Funeral Director with any surplus funds being paid to the investor’s estate.

For more information, contact a Financial Adviser or KeyInvest on 1300 658 904.

KeyInvest is a trading name of KeyInvest Ltd ABN 74 087 649 474 AFSL 240667. KeyInvest is not authorised to carry on business in any country other than Australia. The information contained in this website is directed to and available for Australian residents only. Copyright © KeyInvest 2017 unless otherwise noted.

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