Sav­ing for fu­ner­als

Mandla Khu­malo helps you plan a dig­ni­fied fu­neral for your loved one

Move! Stokvel - - Contents -

IN as much as stokvel groups fo­cus on var­i­ous goals such as in­vest­ments and sav­ings – death is in­evitable. And prepa­ra­tion for a de­cent send-off for loved ones is im­per­a­tive.

Fail­ure to do so could put the stokvels un­der pres­sure to sup­port the be­reaved mem­ber’s fam­ily. Andile Mazwai, the CEO of the Na­tional Stokvel As­so­ci­a­tion of South Africa, says in a case where the stokvel doesn't have burial in­sur­ance, it is forced to tap into its sav­ings.


“Burial so­ci­eties are stokvels that save money for fu­ner­als,” says Andile.“they col­lect monthly pre­mi­ums from mem­bers and of­fer fu­neral cover in re­turn. Even stokvels that are not burial so­ci­eties will use some of their sav­ings to as­sist in the fu­neral.”

Stokvel groups that do not save for fu­ner­als could be neg­a­tively af­fected on their sav­ings, re­sult­ing in the di­ver­sion of funds ear­marked for other things.

This could also strain re­sources as prices go up every­day and con­sumers are forced to dig deep into their pock­ets.

It is best for so­ci­eties to take our fu­neral cover for their mem­bers through a well-known and trusted in­sur­ance provider.


Ex­perts warn that there are un­scrupu­lous prac­tices within the fu­neral in­sur­ance in­dus­try and stokvel groups should ap­proach rep­utable ser­vice providers to

avoid los­ing their money to bo­gus schemes. They need to choose a ser­vice provider they can trust be­cause among the many play­ers in fu­neral in­sur­ance in­dus­try, you still get some that do not have the best in­ter­ests of the con­sumer at heart.

Stokvel groups also need to pay at­ten­tion when tak­ing out fu­neral cov­ers to avoid dis­ap­point­ment at a time when they need to claim.

Mem­bers need to bear in mind that they are re­quired to pro­vide ac­cu­rate in­for­ma­tion to en­sure that the provider per­forms a proper and fair risk as­sess­ment. This will also as­sist when mem­bers need to claim ben­e­fits at the time of death.


Some­times peo­ple do not have ad­e­quate fu­neral cover and when they have to ar­range a fu­neral, the amount in­sured is barely enough for a cof­fin and in this case, a fu­neral stokvel is help­ful.

“Peo­ple of­ten for­get that the ef­fects of in­fla­tion also play a role in the pro­vi­sion of es­sen­tial ser­vices such as buri­als and cre­ma­tions,” cau­tions AVBOB’S as­sis­tant gen­eral man­ager of sales and op­er­a­tions, Nakedi Pi­lane.

She adds that more of­ten than not, fam­i­lies re­quest add-ons for the burial so hav­ing ad­di­tional fu­neral money com­ing from a stokvel could as­sist in cov­er­ing this cost. Most com­mon ad­dons re­quested by fam­i­lies are a pho­tog­ra­pher, tents, videos, sound sys­tem, gravesite re­fresh­ments, tomb­stones and em­balm­ing to men­tion a few.


Over the years, fu­neral cov­ers have evolved to­wards cash pay­outs as op­posed to the stan­dard ar­range­ments of sup­ply­ing the fam­ily with a cas­ket and other small items.

This is help­ful as the cash op­tion al­lows fam­i­lies more flex­i­bil­ity on what they can do with the money that has been paid out.

De­pend­ing on the cover amount, if fam­i­lies spend wisely, the funds could even cover some ex­penses be­yond the fu­neral.

How­ever, if the money is not used wisely, it could run out be­fore the fam­ily pays for some of the im­por­tant things.

Peo­ple should ap­proach rep­utable ser­vice providers to avoid los­ing their money to bo­gus schemes

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