Meerkat Blog: Funeral Cover, Debt Management, Savings, Credit Life Cover

Why Burial Societies Need Regulated Funeral Cover

Written by Meerkat | 18-Jul-2025 11:25:31

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.

  1. 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

  1. 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

  1. Speak to your members about the risks of informal cash-only systems
  2. Get a group funeral quote based on your membership size
  3. Choose a reputable provider, like Meerkat, underwritten by OMART
  4. Onboard members with clear communication and consent
  5. 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.

 

 
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