More than 11.5m South Africans are members of roughly 800,000 stokvel groups. About 25% of these groups are burial societies, and most of them are self-underwritten. While stokvels are an excellent way to save together and help each other during times of need, they can run into problems.

Money issues can render groups unable to pay out the benefits they promise. That means members may not receive the funds they need to cover loved ones’ funerals. Choosing the right partner for your stokvel is the best protection against this.

Mizi Mtshali, CEO of National Stokvel Association of SA (Nasasa) Financial Services, notes that to make sure that your burial society pays out what it promises, it is important for the stokvel you join to be underwritten. The burial society should have a bigger organisation backing it, by taking on its liability and guaranteeing payment in case of loss. This is achieved through a group insurance policy with a trustworthy institution.

Sanlam and Nasasa launched Nasasa Financial Services in October 2019 to cater to the financial services needs of stokvel groups and members. Nasasa has been in existence for more than 30 years, offering regulatory protection and benefits to its members. Sanlam is more than 101 years old and a leading insurer in SA. The partnership between these trusted organisations delivers a superior service at the best price.

Mtshali says: “Every year we see an increasing number of deregistered groups. This is because they simply run out of money and are unable to pay out their claims. Before the group officially closes, members frequently try to offer donations to try to cover a burial, but by then it is too late, and the group is in severe trouble.

“The purpose of our Nasasa funeral scheme for stokvels is to keep groups going for future generations by guaranteeing these payouts. If your group is covered by Nasasa Financial Services, you can trust that your benefit will be discharged.”

Nasasa Financial Services is not only available to burial societies, but to all types of stokvels, from grocery and savings clubs to investment and business stokvels. Mtshali says: “No matter what your group purpose, should a member pass away, families often look to that member’s stokvel groups to contribute towards the funeral. As a result, we see all types of groups taking cover for their immediate members as well as immediate and extended family.”

Nasasa Financial Services is licensed as a juristic representative of Sanlam developing markets, with a long-term plan to become a financial services provider.  

Nasasa Financial Services will distribute tailor-made products nationally via its distribution force. Sanlam as underwriter, through Nasasa Financial Services, will initially offer group-based funeral benefits, tailored to each individual type of stokvel.

Products are competitively priced and start at R15 per person. Once the stokvel has selected its option, the stokvel will pay one premium for the whole group. For burial stokvels, Sanlam has designed a full product, covering up to nine family members and all products have been created in partnership with Nasasa.

Currently, the product offering includes:

• principal member-only funeral benefit;
• an immediate family funeral benefit;
• a principal member plus up to nine dependants funeral benefit; and
• grocery and airtime cash benefits.

This article was paid for by Sanlam Sky.