01
Why people join them
A funeral is one of the largest and least predictable costs a family faces, and it usually has to be paid within days. A burial society spreads that cost: many members pay a small amount every month so that the family of whoever suffers a loss receives help quickly.
Societies are often organised around a church, a workplace, a home village or a group of people from the same area living in a city.
02
Two common models
Before joining, find out which model the society uses, because they behave very differently.
- Pooled fund — members pay a fixed monthly premium into one fund, and the society pays an agreed amount out of it when a covered death happens. The fund must be large enough to pay several claims close together.
- Contribution on demand — there is no large fund; when a death happens, every member is asked to contribute an agreed amount within a few days. Cheaper month to month, but less predictable for members.
03
Waiting periods and who is covered
Most societies have a waiting period — commonly several months — before a new member can claim. It stops people joining only when a relative is already very ill, which would be unfair to everyone who has paid for years.
Be clear about who is covered: just the member, or a spouse, children and parents too? Is there an age limit? Each extra person usually means a higher premium.
04
Beneficiaries and claims
Every member should name who receives the payout, and update it when life changes. Agree what proof is needed for a claim — usually a death certificate or burial order — and how quickly the society commits to pay.
05
Records that keep a society honest
Burial societies run for years, so records matter more than in almost any other club. Members should be able to see what they have paid, what the fund holds and every payout that has been made.
- A dated record of every premium paid, per member.
- A record of every claim and payout, with the reason.
- Regular statements shared with all members, not only the committee.
- At least two people who must agree before money leaves the fund.
06
Burial societies on Money Club
A burial society club type is coming soon on Money Club. It is not available today, and we will not take premiums until it is. If you run a society and want to hear when it launches, contact us.
Put it into practice
Run your club with every dollar on record.
Rotating clubs are live today, with contributions and payouts moving through Safely wallets in US dollars.