Informal Micro-Finance Schemes: the case of funeral insurance in South Africa

Based on a study carried out in the Grahamstown township, this paper examines the means available for obtaining the cash required to finance a funeral. It compares and evaluates four types of funeral insurance providers: formal assistance insurers, formal friendly societies and informal non-profit and for-profit insurers. It finally explores reasons why consumers prefer informal insurers and draws lessons for the formal insurance sector.