Burial Societies Overview

Last updated: January 10, 2026 · Burial Societies · 6 min read

Burial societies provide financial support to members and their families when someone passes away. This guide explains how burial societies work on Zeturi and what features are available.

What Is a Burial Society?

A burial society (also called burial stokvel or burial scheme) is a collective savings group where members pay regular premiums to build a fund that pays out when a member or their dependant passes away.

Key Characteristics

• Regular Premiums – Members pay monthly or quarterly
• Event-Triggered Payouts – Claims paid when someone passes away
• Family Coverage – Members can register dependants
• Reserve Fund – Collective fund for all claims
• Risk Pooling – Everyone contributes, those in need receive

How Burial Societies Work on Zeturi

1. Premium Management

Members pay regular premiums to maintain coverage:

• Flat rate or age-banded premiums
• Premium increases with number of dependants
• Automatic tracking of payments
• Arrears monitoring and reminders

2. Dependant Registration

Members register family members for coverage:

• Spouse, children, parents, siblings
• SA ID validation for accuracy
• Unlimited dependants (scheme rules may vary)
• Premium adjusts automatically

3. Claims Processing

When a member or dependant passes away:

• Submit claim with death certificate
• Admin reviews and approves
• Payout calculated based on scheme rules
• Payment made to beneficiary

4. Reserve Fund

Collective fund for financial stability:

• Built from member premiums
• Used to pay claims
• Target reserve: Usually 6 months of expected claims
• Health monitoring: Good (100% of target), Warning (50-99%), Critical (<50%)

Premium Models

While the sustainable flat-rate formula (mentioned in Common Questions) works for many, successful burial societies often use more specific models to manage risk and growth.

1. The "Age-Banded" Formula (The Actuarial Model)

Best for: Groups with a wide age range (18 to 80).

Instead of one price for everyone, you charge based on risk. Older members are statistically more likely to claim, so they pay more. This prevents "Adverse Selection" (where only high-risk members join because it's cheap).

Zeturi Fit: You can configure this in your scheme settings to automatically assign premiums based on date of birth.

2. The "Family Tier" Formula (The Household Model)

Best for: Community groups and Township societies.

This is a popular model in South Africa. Instead of pricing per person, you price perHousehold Structure. It simplifies collection (one payment per family).

• Single Member: R80
• Couple: R140 (Discounted)
• Family (Couple + 4 Kids): R180
• + Adding Gogo (Extended Family): +R100 extra

Why use this? It is easier to sell ("Cover your whole house for R180"). Note that you must charge a higher premium for extended family members (uncles/aunts) as they represent higher risk.

3. The "Target Reserve" Formula (The Growth Model)

Best for: New societies that need to build cash fast.

Here, you don't just calculate claims; you calculate a Target Bank Balance(e.g., "We want R100 000 in the bank by December").

Example Calculation: Claims Cost: R40 000/year Target Savings Goal: R50 000 (e.g., to buy equipment) Total Goal: R90 000 Premium = R90 000 ÷ (12 months × 50 members) = R150.00 pm

Why use this? It turns the burial society into an asset-builder. The extra money becomes "capital" to buy equipment or invest using the Investment Club features.

Summary Recommendation

• For family/church groups: Use Formula 2 (Family Tier). It fits the social structure best.
• For formal business/large groups: Use Formula 1 (Age-Banded). It protects the fund from risk.

Payout Models

Flat Payout

Fixed amount for all claims:

• Simple and predictable
• Same payout regardless of age
• Example: R15 000 per claim

Tiered Payout (Age Bands)

Payout varies by age of deceased:

• Higher payouts for older members
• Reflects higher funeral costs
• Example: R10k (child) to R25k (senior)

Percentage of Fund

Payout as percentage of reserve fund:

• Scales with fund size
• Example: 5% of reserve fund
• Less common, more complex

Key Features

Waiting Period

Protection against fraud:

• Typical: 3-6 months from joining
• Claims during waiting period may be rejected
• Admin can override for exceptional cases

Arrears Management

Tracking premium payments:

• Automatic calculation of expected vs paid
• Email reminders for members in arrears
• Claims may be affected by arrears
• Payment plans available

Document Management

Secure storage for claims:

• Death certificates
• ID documents
• Proof of relationship
• Bank details for payouts

Member Roles

Member

• Pay premiums
• Register dependants
• Submit claims
• View own records

Treasurer

• Record premium payments
• Review claims
• Manage reserve fund
• Send arrears reminders

Admin

• All treasurer permissions
• Approve/reject claims
• Configure scheme settings
• Manage members
• Export reports

Getting Started

As a New Member

1. Accept Invitation
   Click link in invitation email
2. Complete Profile
   Add your personal details
3. Register Dependants
   Add family members for coverage
4. Pay First Premium
   Make initial payment to activate coverage

As a Scheme Admin

1. Configure Settings
   Set premium amounts, payout model, waiting period
2. Invite Members
   Send invitations via email
3. Record Premiums
   Track payments as they come in
4. Process Claims
   Review and approve when submitted

Best Practices

• Register dependants immediately – Don't wait until needed
• Keep premiums current – Avoid arrears complications
• Set realistic premiums – Balance affordability and coverage
• Maintain reserve fund – Target 6 months of claims
• Document everything – Keep records of all claims
• Communicate clearly – Keep members informed of changes
• Review annually – Adjust premiums and payouts as needed

Common Questions

How much should premiums be?

While a simple calculation (Total Payouts ÷ Members) gives you a break-even premium, it assumes perfect conditions. We recommend considering a Sustainable Premium Strategyto help your society survive bad years.

This approach adds three critical safety layers:

• The "0.9" Rule (Non-Payment Factor): Never assume 100% of members will pay. Calculating for 90% ensures you aren't short on cash.
• Expenses: Cover bank fees, platform subscriptions (e.g., R149), and administration costs.
• Safety Margin: Add 10-20% on top to build a reserve fund for high-claim years (e.g., pandemics).

Real-World Example: The R20 000 Cover

For a society with 50 members offering R20 000 payouts (assuming 2 deaths/year):

1. Naive Formula (Dangerous)
R40 000 claims ÷ (12 × 50 members) = R66.67/month
Result: One extra death or non-paying member causes collapse.

2. Sustainable Formula (Recommended)
Risk Cost: R40 000 + R2 400 Expenses = R42 400
Paying Members: 50 × 0.9 = 45
Base Premium: R42 400 ÷ (12 × 45) = R78.51
With 20% Safety Margin: R78.51 × 1.2 = R94.21/month

The Strategy: Charge R94.21, not R66.67. The extra R27.54 builds your Reserve Fund in good years and saves the scheme in bad years.

Can I add dependants later?

Yes, you can add dependants anytime. Your premium will increase from the next payment cycle.

What if I can't pay my premium?

Contact your admin immediately. Some schemes offer payment plans or temporary relief. Extended non-payment may affect your coverage.

How long does claim approval take?

Typically 3-7 days for admin to review documents and approve. Payment usually within 1-2 days after approval.