Unsure of the Insurers; The Declining Pre-need Industry

[True Faith]

Another old article identifying the other pre-need companies under rehabilitation....

GMA News Online 04/30/2008 | 02:34 AM

MANILA, Philippines - A lingering crisis of confidence as well as competition from other investment products continue to batter the pre-need industry, whose sales plunged by over a quarter in the first quarter.

The industry was wracked by controversy a few years ago, when several pre-need firms, facing liquidity problems, could not service the maturing plans of clients.

These clients were holding mostly educational plans.

The firms involved were forced to apply for corporate rehabilitation. They included the biggest, such as Professional Financial Plans, formerly TPG Corp.; College Assurance Plan Philippines, Inc.; Platinum Plans Philippines, Inc.; and Pacific Plans, Inc.

- R.A.M. Rubio, BusinessWorld

[uls]

since you guys are really good at looking for articles...

pls look for articles re investment losses of insurance, pre need companies...

include also foreign investment losses of GSIS...

and while you're at it, pls research losses of local mutual funds...

and pls tell us why Prudentialife cut pension plan benefits from 12% to 6% P.A.

[[archie]]

i agree that pinoys are having doubts on philam life because of the AIG thing but remember that philam is a subsidiary of AIG and will not influence the performance of the local philam.

kaya for sale ang philam kasi kailangan na ng pera ng AIG to pay some of its debts pero the financial stability of philam remains to be strong. i have no doubt that it can still cover the plans that they sold.

sa mga nagpanic surrender ng plans nila, magsisisi yun sa dulo kasi mas kikita ang pre-need company if they surrender their plans.

[jpdm]

i agree that pinoys are having doubts on philam life because of the AIG thing but remember that philam is a subsidiary of AIG and will not influence the performance of the local philam.

kaya for sale ang philam kasi kailangan na ng pera ng AIG to pay some of its debts pero the financial stability of philam remains to be strong. i have no doubt that it can still cover the plans that they sold.

sa mga nagpanic surrender ng plans nila, magsisisi yun sa dulo kasi mas kikita ang pre-need company if they surrender their plans.

Agree here. Better to hold on to their plans...

But I hope a good company will buy philam...

[jpdm]

Manila Times
October 31, 2008

Philam Unit to Form

... Cuisia assures the public that the American Insurance Group (AIG), Philamlife’s parent company, has required that buyers of Philamlife and its other life companies have top rated brand name, must be financially strong and strategically fit for insurance business.

‘I am confident that if the new owner meets these three criteria and they will be able to continue Philamlife’s legacy,” he said.


Big corporations Ayala Corp., Metrobank Group and the Yuchengco’s Grepalife had expressed serious intentions to acquire Philamlife.
-- Maricel E. Burgonio

Goodnews for the planholders of philam

[True Faith]

I read the newspapers yesterday, Philam is finalizing its list of buyers...

Speaking of pre-need, especialy educ plan, with the rising costs of education--with the way things are going---in the next few years we will see a 70thousand pesos tuition for schools like Ateneo, DLSU and UA&P.

Even UST is getting expensive.

In other words, can the preneed industry adjust to this and offer a more stable and realistic educ plans...

[[archie]]

I read the newspapers yesterday, Philam is finalizing its list of buyers...

Speaking of pre-need, especialy educ plan, with the rising costs of education--with the way things are going---in the next few years we will see a 70thousand pesos tuition for schools like Ateneo, DLSU and UA&P.

Even UST is getting expensive.

In other words, can the preneed industry adjust to this and offer a more stable and realistic educ plans...

well, if you have the financial capabilities, you can get as much coverage as you want. but if not, long term payments with long maturity is your choice.

thats why its best to get plans as early as possible to make make payments much lighter but have the full coverage. agents over estimate the cost of education when you need it kaya more or less safe from yearly tuition increases.

[tidus1203]

There is no low risk investments (you don't want high risk investments for pre-needs) that can cope up with the inflation of educational costs. Ang sagot IMO have just 1 kid instead of 2, have 2 instead of 3

[[archie]]

There is no low risk investments (you don't want high risk investments for pre-needs) that can cope up with the inflation of educational costs. Ang sagot IMO have just 1 kid instead of 2, have 2 instead of 3

:bwahaha: tama!

[uls]

haha

or

go make a ton of money so u don't have to depend on any pre need