Page 68 - Signature Funeral Directors Book for Adelaide 2017

Claiming a benefit payment Bonuses
Once funds have been deposited into your Bendigo
Funeral Bond they cannot be withdrawn prior to death
(with the exception of the 30 day cooling-off period, see Your annual bonus
below). If your Bond is not assigned to a funeral director, In determining whether or not to declare a bonus and
the Bond benefits will be paid to your estate following the bonus rate to be declared, Australian Friendly Society
your death. Alternatively, your estate can direct us to considers the investment returns achieved during the
pay the Bond benefits to your funeral director following year, as well as the advice of the Society's Actuary. The
your death. Any residual Bond benefits after paying the actual bonus declared is calculated after the deduction
funeral director will be paid to your estate. of Fund fees, charges (including tax) and any solvency
Benefits will be paid upon production of satisfactory reserves required by law. If a bonus is declared, it is
documentation that your funeral has been carried out. allocated to each member's account as at 30 June and
Benefits will usually be paid within seven days of receipt becomes part of the total investment for the calculation
of all necessary documentation. of future bonuses. The bonus is guaranteed once
declared.
Your executor or legal personal representative of your
estate should contact AFS Client Services to confirm the A statement showing your annual bonus and current
current documentation requirements. account balance will be sent to you after 30 June each
year, generally within three months. If you have assigned
How a benefit payment is calculated your Bond, the statement will be sent to your funeral
director.
Benefit payments are calculated using the member's
account balance as at the date of death, which You can obtain updated information about the
comprises contributions made by the member and all performance history of the Bendigo Funeral Bond by
declared and accumulated bonuses, together with any contacting AFS Client Services or visiting our website
final bonus. The final bonus is calculated by applying the www.australianfriendlysociety.com.au
interim bonus rate pro-rata, between the last declared
bonus and the date on which the benefit is paid. A Interim bonus rate
special termination bonus may also be paid at this time. An interim bonus rate is also declared. If a claim is made
during the following financial year, the interim bonus rate
Minimum age is applied from 1 July to the date on which the benefit is
paid.
Applications will not be accepted from or on behalf of
children under 10 years of age. Applicants aged 10 to
16 years must obtain the written consent of a parent or Termination bonus
legal guardian before being admitted as a member of The termination bonus is payable in addition to normal
the Fund. benefits at the date of death. It is set each year based
on the level of the retained surplus in the Fund following
Cooling-off period the declaration of bonus. Due to changes to the income
tax treatment of funeral policies issued from 1 January
A 30 day cooling-off period applies to initial contributions
made into the Bendigo Funeral Bond. During this period, 2003, the Society pays tax on income on those policies,
you have the right to cancel your Bond and have it repaid and expects to recover this tax when benefits are paid.
in full. This period starts from the earlier of: Tax so recovered will be included in the termination
bonus.
• the time you receive confirmation that your initial
contribution has been accepted; or Difference bonus
• five business days after your initial application
monies are received by the Society. If a claim is made after 30 June but before the annual
bonus rate is declared, the difference between the
The cooling-off period will end if you have exercised a interim bonus rate paid and the declared annual bonus
right in relation to the Bond, for example, an assignment rate will be paid to your estate or assigned funeral
or a claim. If you wish to cancel your Bond within the director, once calculated.
30 day cooling-off period, you will need to write to the
Society stating this intention. You will then be sent a Generally the difference bonus is paid in the month of
refund for the value of your Bond. October. Please note that past performance cannot be
taken as a guide to future returns. The future bonus
rates for the Fund are not guaranteed and may be subject
to fluctuations.
4 Bendigo Funeral Bond