I've seen an uptake in demand for funeral bonds in my six years with Australian Friendly Society. A combination of factors is currently driving demand, specifically Australia’s ageing population, along with financial planners reviewing client portfolios towards the end of the financial year.

We are seeing solid growth in the number of direct customers making enquiries about funeral bonds, along with steady demand through our distribution network, where over the past two years we have seen new business more than triple. Financial planners are also referring clients, particularly towards the end of the financial year as there can be significant financial planning advantages associated with investing in funeral bonds.

Investments of up to $12,250 (indexed effective July 1 each year) are currently exempt from Centrelink and the Department of Veterans’ Affairs Income and Assets Tests, which means there can be important taxation and pension considerations, depending on the circumstances of a particular client.

Given that nearly half of all Australians don’t have a valid Will, it’s safe to say that funerals are a topic that most people don’t like to think about either, but it is also an area where a little preparation now can mean peace of mind for loved ones during those difficult times later.

Many older people like to make sure that those left behind don’t have the additional stress of having to find the money for a funeral, particularly if a death is sudden or unexpected. For them it’s simply a practical decision intended to make their passing easier for those left behind.

The Bendigo Funeral Bond offered by AFS is a capital-guaranteed savings and investment plan that solely accumulates funds towards the cost of your funeral expenses. The true value of pre-planning for funeral expenses shouldn’t be underestimated, particularly in a nation with a growing population of grey nomads with a well-earned reputation for travelling far and wide.

Imagine a son getting a phone call notifying him that his mother who was holidaying on Magnetic Island, Queensland or Broome, Western Australia had passed away during the night. After scrambling to get his mother transported back to her hometown of Melbourne, he was going through his mother’s paperwork when he discovered that not only did she have a Funeral Bond through AFS but that she had also taken out transport insurance to the value of three thousand dollars.

Travelling around Australia in retirement has become a cultural phenomenon. There are over half a million caravans, motorhomes and camper-trailers registered in Australia - with Queensland and Western Australia among the favourite ‘Grey Nomad’ destinations.

With around three million caravanning journeys undertaken each year, the reality is that not everybody makes it home again and the cost of repatriating the deceased back from the Kimberley or Far North Queensland can be significant, so it’s worth considering options such as transport insurance.

It’s also worth noting that there are some very important differences between a capital guaranteed funeral bond and a funeral insurance plan, which may require premiums to be paid up to date in order to receive payment. Exploring and understanding these differences with a financial planner could be a very worthwhile exercise.