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Poll: Confidence in Pre-Need Plans and Pre-Need Companies Print E-mail
Written by Pinoy Entrepreneur, on 06-02-2009

My wife asked if it's time to withdraw from our pre-need plan as a result of the recent barrage of news about the problems faced by pre-need companies. This is not the first time that pre-need companies are in the hot seat. Years back, the College Assurance Plan (CAP) and Pacific Plans, Inc. (PPI) suffered a financial problem which prompted them to seek shelter under the rules on corporate rehabilitation. Lately, member-companies of the Legacy Group (Legacy Consolidated Plans, Scholarship Plan Philippines, All Asia Plans) closed shop. First, let's define some concepts.

A "pre-need company" is any corporation registered with the Securities and Exchange Commission (SEC) and authorized/licensed to sell or offer for sale pre-need plans. "Pre-need plans," on the other hand, are contracts which provide for the performance of future service/s or payment of future monetary consideration at the time of actual need, payable either in cash or installment by planholders. It includes life, pension, education and interment plans. Pre-need companies are under the SEC (in contrast, insurance companies are under the Insurance Commission).
 
According to GMA News: "Pre-need companies will need more time to raise money to pay for plan holders’ claims after suffering from falling asset prices as a result of the slowing global economy." The Federation of Pre-need Companies of the Philippines assured investors to prevent massive withdrawals (see BusinessWorld news and Inquirer news). SEC Chair Fe Barin, who is under fire lately, also expressed her hope for the pre-need industry to recover.
 
Indeed, the recent developments no doubt affect the level of confidence of planholders and the public. This brings us to our poll -- what's your level of confidence in pre-need companies?
 
Update: The poll ran from 6 February 2009 to 7 April 2009, with a total of 153 votes cast: High -- 11 votes (7.2%); Neutral -- 17 votes (11.1%); Very High -- 18 votes (11.8%); Low -- 38 votes (24.8%); Very Low -- 69 votes (45.1%).
 
Published in : Topics, Polls

Users' Comments (4)
Posted by gail, on 05-08-2009,
our family is also in dilemma to back-out or not for our plans, but when my friend told me that even his xxxx HMO card is in the state of like the LEGACY, and he cannot use it anymore unless he waits for the refund of all the medical fee he will use, his still in a limbo "what if the company cannot stand up anymore" what will happened to me if im in the hospital and i cannot use my HMO card? etc etc,  
 
guys better save is in the bank rather to take a gamble with this companies. Waste of hard earned money. Sorry for being practical
 

Posted by alext, on 13-04-2009,
It seems our financial expert is no expert at all and she loves fairytale story and it goes like this:  
 
"SEC Chair Fe Barin, who is under fire lately, also expressed her hope for the pre-need industry to recover." (3rd paragraph)  
 
She used the word "HOPE" meaning no guarantee whatsoever...  
"BAHALA NA" is the best replacement for that keyword.  
 
Let's HOPE this story may not to end as another blockbuster fairytale story again! 
 
BAHALA NA!
 

Posted by NEED YOU HELP, on 05-04-2009,
i have a question. i lost my cerficifate of full payment. which i need to get my money back at cap. how or what are the processes i need to make so have a copy of certificate of full payment.
 

Posted by gerardo, on 03-04-2009,
pre need plans in this country have to be really evaluated.the fear of the plansholders will always be there base in the recent incidents happened and the involvement of well known people are very alarming.the umbrella of their protection is wide whereas the planholders is to narrow.myself as an ocw is very much concerned about this since i'm most of the time out of the country and i dont want to be caught flatfooted when this thing happen to my policy and i hope that people who have these kind of business must show some updated transparency of the company position in the market.
 

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