Funeral Bond

funeral bond

Make it a celebration of your life

By planning ahead with a Manchester Unity Funeral Bond, you can be assured of the funeral you want, without leaving your family with the financial burden.

You can provide for your funeral expenses simply by investing in a Manchester Unity Funeral Bond. You can also use your Funeral Bond to pre-arrange expenses with a Nominated Funeral Director, which allows you to plan all aspects of your funeral in advance, at an agreed price.

You can start with a minimum initial Bond purchase of $500, while the maximum contribution for persons, other than pensioners who have not completed the Nomination of a Funeral Director, is $10,750.

Features

Capital Secure

Funeral Bonds are deposited into the Manchester Unity Blue Chip Funeral Fund, which is capital secure. Your money will grow, with bonuses allocated annually, and when the need arises your family can access funds without delay. It all comes down to peace of mind.

A Choice of Options

Use it as a Funeral Bond to simply place some funds aside to pay funeral expenses; or use it to pre-arrange funeral expenses by completing the Nomination of a Funeral Director section on the application form in conjunction with a pre-arranged funeral agreement.

Funeral Expenses

Benefits from the fund can only be applied to approved funeral expenses, including:

• Cemetery fee (Burial)
• Crematorium fee (Cremation)
• Transportation to the funeral parlour
• Transportation to the place or country of origin for burial
• Funeral director’s service fee
• Preparation of the body
• Coffin or casket
• Hearse and mourning vehicles
• Clergy offering
• Statutory certificates
• Death notices
• Floral wreathes

Annual Bonuses

Annual bonuses are allocated based on the performance of the Fund. Bonuses are allocated according to the value of each member’s bondholding.

Can I surrender my funeral bond?

No, your funeral bond cannot be surrendered. The benefits from the Funeral Bond can only be used for the payment of Funeral and Funeral related expenses.

Payment of proceeds

Proceeds are paid promptly on receipt of an itemised account and a certified copy of the medical certificate or death certificate. Upon receipt of these documents we will pay the Bond benefits as directed. 

Social Security Benefits

Income and Assets Test exemptions for people receiving full or part means-tested pensions from Centrelink or the Department of Veterans Affairs (DVA).

14 day trial period

You have a 14 day trial period in which Funeral Bond purchases can be refunded.

Taxation

Where a Nomination of Funeral Director has not been made - the residual amount (if any) remaining after the funeral expenses have been met will be subject to tax in the hands of the estate of the funeral bond holder.

Where a Nomination of Funeral Director has been made - Investment income will be subject to tax instead in the hands of the funeral director, in the year benefit entitlements are paid.

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What fees apply to the Bond?
 

Entry Fee

There is an entry fee of 4% of the value of each Bond purchase. The fee is payable in addition to the Bond purchase value.

Annual Fees

An annual management fee is deducted from the total Fund assets prior to the declaration and allocation of the annual bonus. These fees are not deducted from individual members’ accounts. The annual management fee is 0.5%, ie. one half of one per cent, of the Fund balance at the previous 30 June plus 0.5% of the Fund balance at the current 30 June.

Fund Manager’s Fees

An amount of up to 0.021% of the Fund balance may be deducted at the end of each month, to cover the costs of managing the investments of the Fund. This deduction is also taken from the total Fund balance and not from individual members’ accounts.

Withdrawal Fees

No withdrawal fees are payable when the benefit from your Bond is paid to your estate or to a nominated Funeral Director.

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Applying for a Funeral Bond

Simply complete the application form included in the Information Brochure. You can either download an Information Brochure from the link below, or contact us.

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Download an Information Brochure [275KB PDF]