FUNERAL INDUSTRY AND FUNERAL INSURANCE

SOME have referred this as rating among the oldest industries even earlier on before it would stand on its own.

Also, within the majority of the black population we have always had stokvels, burial societies and even funds where the system is run by local chiefs in villages. The practice in all these mentioned group schemes are almost identical.

In burial societies and village schemes, members are required to contribute a set amount regularly. They are also allowed to enlist a number of family members who will most likely be covered.

Going forward members have to abide by the rules and regulations governing the group, the main important one being to ensure that they do not default on the subscriptions. Once a member defaults then the member runs the risk of getting the benefits should death struck.

In villages, rulers were forced to come up with such funeral services after having noted the level of suffering once deaths strikes. Most of those families live in abject poverty and from hand to mouth to a point where there is no way they can successfully run a funeral.

As time went on the cost of funerals have sky-rocketed and families now choose to spend more when bidding farewell to loved ones. People even go out of their way to borrow large sums of money that they will spend on one day. These they claim is to give the dearly departed a dignified send-off.

Of course there are the unscrupulous lot who will always take advantage of the situation.

These are those who, in the name of caring and the love of family will add members so they could gain more money in the event of a death. They will perhaps only contribute a tenth of the pay-out they would have received from the insurance while pocketing the bulk.

One observer recently said that people appear to be investing more in death than in life. The observer argues that the communities and people are prepared to invest into death and are prepared to put everything on hold while trying to save towards death. “Unfortunately the majority of our people do not earn enough to invest in life living from hand to mouth,” said the observer.

The funeral services in South Africa is a thriving one and its revenue generation to the country is estimated at close to R10Billion annually. We have role players ranging from formal as well as from informal sectors.

There are many established organisations in South Africa with AVBOB, established 99 years ago and has since grown into a billion rand Burial Society rendering services of the highest quality to the full spectrum of Society in Southern Africa.

AVBOB provides a complete, one-stop Funeral Insurance and Funeral Service solution. With AVBOB, you get many free funeral services if you use them to arrange the burial for you. You get a free basic funeral of up to R11 000* over and above your cash pay-out. Benefits include the use of a modern hearse, tents, grave site, transportation of deceased use of mortuary, etc.