Sureplan Family Fund
Sureplan Family Fund
Sureplan Family Fund is administered by Sureplan Friendly Society Ltd. It is a life insurance product under the The Life Insurance Act 1995 (Cth) and is prudentially regulated by the Australian Prudential Regulation Authority (APRA), It is not an accumulation product like Sureplan Gold, which is a funeral bond.
Anyone between the ages of 1 and 55 could apply for membership. See below for recruitment status*
With the commencement of a Sureplan Family Fund policy members are immediately covered for a funeral benefit that is payable upon their death. Premiums, preferably made by automatic direct debit, can be paid monthly, quarterly, six-monthly or annually.
There is no Surrender Value for benefits in the Fund and the benefit can only be paid on the death of a member. Under the Rules of the Fund, any member resigning for any reason shall have no claim on any payments made to the society.
How it works!
When joining, a member selects a benefit amount, and the premium payable is determined by the applicant’s age and the amount of benefit selected. The premiums are fixed (never increase) and are payable until age 60. The closer the applicant is to age 55 (the maximum joining age) and the closer the selected benefit is to $15,000 (the maximum benefit amount), the higher the premium. Three examples are provided below;
|
Age of Applicant |
Maximum Benefit Available $ |
Monthly Premium $ |
Total Premiums Payable $ |
|
25 |
14,860 |
12.87 |
5,405 |
|
40 |
14,940 |
29.67 |
7,121 |
|
55 |
14,976 |
148.72 |
8,923 |
The total premium amount can be easily calculated as the premium amount is fixed and payable only until age 60. As seen in the above examples, members pay substantially less in total premiums than their benefit amount.
Benefits of Sureplan Family Fund membership
Immediate cover – we will pay your nominee (on behalf of your estate) the benefit you have selected within 24 hours of being advised of your death, even if it is the day your membership is accepted, providing all pre-existing conditions have been declared.
Full cover – you are insured for accidental death and death from natural causes immediately, however you will not be covered for death by suicide within the first 24 months of membership,
Lifetime cover – even though you are required only to pay premiums until age 60 you are covered for the duration of your lifetime,
No premium increases – the amount of your premium payable will not change through the term of the policy unless you choose additional cover,
No hidden costs – there are no entry or exit fees.
*Capital Reserving Requirements
After members have turned 60 and are fully paid up, they pay no more premiums, and their cover remains for life. The rate of return that those premiums earn therefore has to be sufficient to grow, over the expected life of the policy, the total of premiums paid to at least equal the benefit promised. For many years prior to the recent increase in interest rates, premiums paid for new policies could not earn an adequate rate of return. The Board, following advice from the Appointed Actuary, took the difficult decision to limit recruitment in 2018/2019 and to suspend all recruitment of new members and the issuing of additional benefits in this Fund in 2019/2020. This decision is under constant review, particularly as interest rates normalise.
There is no risk to existing members as SFF is well capitalised and continues to meet all prudential capital requirements. The long-standing practice of retaining surpluses to ensure that SFF meets all reserving requirements has been critical during this continuing cycle of market volatility and increasing interest rates.
The maturity bonus, established in recognition of a member’s interest in the accruing surplus, was paid in 2023/2024 and will continue in 2024/2025 at the same rate. This bonus is included in the calculation of members’ benefits paid during the year.