Introduction: The Hidden Risk of Cash-Only Funeral Funds
Burial societies and stokvels play an important role in helping communities bury loved ones with dignity. But relying only on cash-based contributions and payouts can leave families exposed when they need help most.
In this article, we unpack the difference between cash-only burial society funds and regulated group funeral cover, and why it’s time to move toward secure, reliable financial protection.
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What Is Regulated Group Funeral Cover?
Regulated funeral cover is offered by licensed financial service providers like insurers or underwriters.
Key features include:
- Underwritten by licensed providers (like OMART)
- Protected by financial regulation (FSCA)
- Fixed payouts within a set timeframe (e.g. 24-48 hours after claim)
- Clearly defined rules, terms, and limits
- Tailored for groups like stokvels or societies
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The Problem with Cash-Only Burial Funds
While informal burial funds are based on good intentions, they come with major risks:
| RISK | WHY IT MATTERS |
| Delayed Payouts | If members haven't contributed or the account is short, payouts get delayed |
| Fraud or Mismanagement | Cash handling increases risk of theft or loss |
| Lack of Structure | No formal claim process = confusion during a crisis |
| No Regulation | No legal protection for members if something goes wrong |
3. Why Regulated Funeral Cover Is Better for Your Members
✅ Fast, Guaranteed Payouts
Most insurers pay within 24–48 hours of a valid claim, so families aren’t left waiting.
✅ Peace of Mind for Members
Members know exactly how much they’re covered for and what benefits they’ll get.
✅ Financial Discipline
Fixed monthly premiums help societies budget and avoid unexpected shortfalls.
✅ Legal Protection
Members are protected under South African law. There’s a formal complaints process if anything goes wrong.
4. How to Transition Your Society to Regulated Cover
- Speak to your members about the risks of informal cash-only systems
- Get a group funeral quote based on your membership size
- Choose a reputable provider, like Meerkat, underwritten by OMART
- Onboard members with clear communication and consent
- Set up simple debit orders or monthly collections to fund the policy
Conclusion: Protect Your Legacy
Burial societies and stokvels are built on trust and tradition. But when it comes to funerals, families deserve certainty, not stress.
By choosing regulated funeral cover, your society can offer real protection, faster payouts, and greater dignity to every member, without the risk of running out of cash.
Thinking of switching to regulated group cover?
Talk to Meerkat today for a simple, affordable group funeral plan, backed by a trusted provider and tailored to burial societies.
