What happens if the cost of your funeral is less than you have accumulated in your funeral bond?

When consumers meet with a funeral director to put some plans together for their funeral, many will want to put some money aside to help meet its cost. As funeral directors are unable to hold the money themselves (unless they operate a trust fund) they will suggest that the money is invested in a funeral bond. When completing the funeral bond application, the consumer will need to appoint a nominee – the nominee receives the funeral benefit payment on behalf of the consumer’s estate when they die. On many occasions the consumer will appoint the funeral director as nominee.

One question that is often asked is what happens if the funeral director, or any nominee, receives the funeral benefit and it is more than the cost of the funeral? The answer is that, under the provision of sub-section 211 (4) of the Life Insurance Act 1995, the residual amount must be paid to the estate of the deceased member.

Sureplan Gold is a funeral bond issued by Sureplan Friendly Society Ltd.  When a Sureplan Gold member dies, to ensure their wishes are observed, the nominee is advised in writing that “their obligation is to use the money in due course of administration and specifically for the purpose of paying funeral expenses”.