Also, since I'm in the insurance / pre-need industry, I think it's my duty to share these concepts / news regarding pre-need companies...

Pre-need companies offer 3 main products:(1) Educational Plan; (2) Pension Plan and (3) Life Plan or Memorial Plan. Educational Plans are usually classified into two: (1) Traditional Eductaion Plans - the ones in troule today and (2) Fixed Vakued Educational Plans.

Traditional Educational Plans – Upon maturity, a pre-need firm pays the tuition of a beneficiary regardless of amount (checks are paid to the school)

Fix Valued Educational Plans - Upon maturity, a pre-need firm pays the beneficiary an agreed amount (checks are paid to the plan holder, not to the school) 

So, kung traditional and plan ninyo, there's a chance na may problem, pero not necessarily applicable for all.  May ok pa naman.  Kung fixed value, probably walang problem.  Also President Arroyo mentioned some efforts to save the pre-need industry.. Let's pray, makaahon pa ito...

Anyway, here are some articles you might want to know... baka kasi bumubili na kayo and medto delikado yung company na kausap ninyo:

Pre-need’s Dilemma (by Mary Ann Reyes, Hidden Agenda, April 25, 2005, Philippine Star)

“After 1992 when tuition fee increases were deregulated, many pre-need firms stopped selling open ended (traditional) and instead offered fixed value plans but some continued to do so. For instance, CAP continued to sell open-ended plans from 1992 to 2002 despite the tuition fee increase deregulation… There is rumor in the pre-need industry that Platinum is next… Platinum is dead not dying… There are also rumors that Prudential is next in line but we have yet to confirm the reports. Not all is lost for the pre-need industry however. There are companies that have invested their planholders’ money wisely and have trust fund surpluses…I heard that some of the healthier companies that have put more of the money on trust funds and less on commissions and other expenses are Philam and Loyola… At least 70 percent of the pre-need firms are safe…” 

Philippine Star (page B-8, 5/7/2005)

“… the Securities and Exchange Commission disclosed earlier that it has been monitoring the operation of 12 pre-need firms that have offered traditional educational plans to prevent more industry players from ending up like CAP’s and PPI’s situation. Besides the troubled CAP and Pacific Plans, the other pre-need firms being monitored by SEC are: 

Eduplan Philippines, Inc.,

Eternal Plans, Inc.,

Legacy Consolidated Plans, Inc.,

PET Plans, Inc.,

Platinum Plans Philippines, Inc.,

Pryce Plans, Inc.,

TPG Corp.,

Trusteeship Plans, Inc., and

Scholarship Plans Phils., Inc.”

 


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