Capital Guaranteed Funeral Bonds are the safest and most secure way to invest money paid for a Prepaid Funeral. Capital Guaranteed Funeral Bonds guarantee that the balance of money invested and interest earned cannot go backwards regardless of investment performance.
We value the trust our clients place in our prepaid funerals and have taken care to choose the most safe and secure investment option for prepaid money. Capital Guaranteed Funeral Bonds are the funeral bond option with the least risk.
Investment in Capital Guaranteed Funeral Bonds ensure that the money paid for a prepaid funeral will be available when a funeral service is needed.
Our Prepaid Funerals
We are specialists in arranging and managing prepaid funerals. We have supported people to pre-plan burial and cremation services for over 30 years with our personalized service.
Our Funeral Consultants offer sit down appointments to discuss and organize prepaid funerals in the comfort of your home or at one of our office spaces.
At the time a prepaid funeral service is required we reliably honor all that has been included in a Prepaid Funeral Agreement. This is regardless of any increases in pricing for funeral related products and services over time, or the performance of investments associated Funeral Bonds.
Our company has been growing steadily for over 30 years. There is no reason to expect that will cease trading. In the unlikely event that this did occur, money invested Capital Guaranteed Funeral Bonds and any interest earned would become available for funeral costs when the money is needed. The funeral bonds are held in the name of the person that the funeral are for.
Our prepaid funerals provide peace of mind for people from all walks of life and their families.
Management of Prepaid Funeral Funds
It is with good reason that we are asked about the management of the money paid for a prepaid funeral. We consider our investment approach to be in the best interest of our clients.
In accordance with the Funerals Act 2006 (VIC) most money paid for a Prepaid Funeral is invested in a Funeral Bond held with a Friendly Society. The amount invested is after deductions of any fees payable to cemeteries, G.S.T. and our prepaid administration fee. Money is held in the same name of the person named on our Prepaid Funeral Agreement.
We choose to invest money with KeyInvest, is a member-owned mutual friendly society. They have been operating since 1878 and have recently taken on the management of Australian Friendly Society Funeral Bonds. KeyInvest are regulated by both APRA and ASIC.
Capital Guaranteed Funeral Bonds are the funeral bond option we choose to invest in. These are the least risky of the different Funeral Bond options. The investment focus of Capital Guaranteed Funeral Bonds is on the preservation, protection and stability of capital.
Unlike other Funeral Bonds, the money paid into Capital Guaranteed Funeral Bonds and any interest earned is guaranteed. The balance cannot go backwards regardless of any fluctuations in investment markets.
How KeyInvest provides Capital Guaranteed Funeral Bond security
- Funeral Bond investments are held separately from other KeyInvest assets
- Funeral Bond funds are not available to be used for any other purpose
- Funds are invested into conservative and defensive assets
- More than the minimum requirement of $10M is held to underpin the Capital Guarantee
- Any investment losses year to year are covered by an additional surplus fund held by KeyInvest
- Investments are managed by qualified investment professionals governed by an investment mandate and guidelines
- KeyInvest reports quarterley to APRA
- Capital Guaranteed funds will be available to be taken over by another provider in the unlikely event that KeyInvest ceases operating
Helpful to know
- Funds held in a Funeral Bond are held in the same name of the person recorded on the Prepaid Funeral Agreement with us
- When a Funeral Bond has been established, the funds held cannot be released or withdrawn prior to the death of the person insured.
- Funds invested in the Capital Guaranteed Fund must remain in this investment option for the life of the Funeral Bond
Centrelink & Department of Veteran’s Affairs Benefits
Money held in Funeral Bonds is currently classed as an exempt asset under the Assets and Income tests applied by Centrelink and the Department of Veteran’s Affairs (DVA) for the purpose of entitlement eligibility (conditions apply).
Additionally, people holding a prepaid funeral may be eligible for higher entitlements or access to other Government means tested benefits (threshold applies).
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