When entering Aged Care, the level of any Government financial support is determined by a means-tested assessment – in other words an Income and Assets Test. Therefore, the reduction of assessable assets can help to qualify and/or increase the level of Government assistance.

There are only a few ways that assessable assets can be reduced. One way is to contribute funds to a funeral bond such as Sureplan Gold, and providing the maximum allowable amount (currently $15,500) is not breached, it may be treated as an Exempt Asset i.e. not assessed as an asset by Centrelink.

Even if a member contributes the full allowable amount of $15,500 to Sureplan Gold and the cost of their funeral is less than this, no funds are “lost”. This is because when a member dies, the total accumulated amount of the member’s Sureplan Gold policy is paid to the nominee appointed by the member, who, after using the proceeds of the funeral benefit received to pay for the member’s funeral expenses, must transfer any residual amount to the member’s estate.

Sureplan recommends that someone considering an investment in Sureplan Gold should obtain financial advice.