deteriorating condition of pre-need plans in the philippines
February 24, 2009 12:53am CST
My in-laws are victims of this untimely worsening condition in the pre-need industry. Two of my wife's sisters almost didn't make it through college. How come this things are happening when there are agencies in our government that requlates the industry. Companies in the industry are blaming the world financial crisis, but even before the crisis took place, when the economy of the world are still stable, there are already pre-need companies gone bankrupt. Is this the result of poor business handling, government failure to do its job, unforseen circumstances in the economy or all of the above. No matter what are the reasons behind it, the one who are affected most are the parents who works so hard to raise up money to pay for the plan to ensure a good future for their children.
25 Feb 09
Yes I agree with you that pre need plans in the philippines is deteriorating.. Luckily its just a matter of luck. This was in the 80's shortly after I was married I bought an insurance plan with Insular for me and my wife after five years or so, I investigated the status of our plan and insular told me that our plan lapses for not payment of our dues, we told them that their agent who introduces us the plan is collecting our yearly contribution and showed them their reciept. The agent was said to had been long dismissed from their company due to wrong doings, and our money is gone. It seems like a connivance since these people should notify us before our insurance is to lapse but never it happenned from their side. Since the argument is like chasing water under the brigde, we keep quiet and never trust this insurances again. I happen to transfer to a conglomerate company and insurances is one of their businesses, there i bought educ plan for my 4 children , i already uses one, i am collecting again next week for tuition this coming school year. also i will be collecting my retirement plan next month and the company is still okay. just by luck. LOL
24 Feb 09
It is really sad, many of our parents are really trying their best to invest for the sake of the future of their children. It is not proper to give all bad credits in the world financial crisis, they had to pay for all those people who really pays for that plan. I think some companies blame the global financial crisis but the truth is they are already been bankrupt. I'm really hoping that it will not happen again.
24 Feb 09
I guess its has put a bad light to these pre-need companies that they promise so many things to their clients and continued to sell their plans despite the warnings from SEC about them. I think we should stop this industry as this does not help anyone at all.