Unsure of the Insurers; The Declining Pre-need Industry

[jpdm]

Tsk,tsk,...

Philippine Star

Pre-need sales tumble 21%

By Zinnia B. Dela Peña
Updated December 05, 2008 12:00 AM

Sales of the country’s pre-need companies fell 20.8 percent in the first 10 months of the year, mirroring the still weakened confidence of investors in the battered pre-need industry.Data from the Securities and Exchange Commission’s Non-Traditional Securities Department showed pre-need sales reached P12.71 billion from January to October this year, from P16.05 billion a year ago.The number of plans sold, however, rose 7.07 percent to 204,227 from 190,746.

Sales of pension plans, accounting for the bulk of total sales, dropped 35.48 percent to P6.12 billion from P9.48 billion as the number of plans sold declined 32 percent.


Education plans suffered the biggest drop in sales from P3.3 billion to P1.59 billion. A total of 9,290 units were sold, down 56.2 percent from the year earlier level of 21,698.


Sales of life plans, on the other hand grew 53.09 percent to P5 billion from P3.26 billion as the number of units sold increased 60.85 percent.
Initial collections, the first payment made by the planholder upon purchase of a plan depending on his or her mode of payment, amounted to P1.27 billion or 26 percent lower than the previous year’s P1.73 billion.
In October alone, pre-need sales hit P989.775 million, a decrease of 21 percent from sales in October 2007.


Pre-need plans are contracts which provide for the performance of future services or the payment of future monetary considerations at the time of actual need for which planholders pay in cash or installment at stated prices, with or without interest or insurance coverage and includes life, pension, education and interment.

[tidus1203]

Opinyon ko lang ito so no offense to others especially those involved in pre-need. Pero in most cases pre-need is so not worth it na rin these days. Dati ok sya, pero nowadays ang baba ng return halos talo pa ng inflation. Might as well ilagay mo na lang sa bond fund ang pan education ng anak mo kaysa ibiggay mo sa pre-need.

[uls]

gone are the days when u leave your money with someone and years later you have one huge pile of money

[tidus1203]

That is true uls. We are always the best guardian of our money. Everyone else just wants commissions and profit sharing.

[[archie]]

yep its true that if you know investments... better to hold on to your money na lang and invest if you have knowledge on where to invest it.

pre-need are bulit naman for those people that knows only bank savings as a investment vehicle kaya offer sila higher than what banks can offer.

my 2 cents.

[uls]

people trust the system too much

Walang ibang tao mas may malasakit sa iyong pera kundi ang iyong sarili

don't expect other people to have malasakit on your hard earned money

if they lose it, it doesnt hurt them

i don't even trust the people managing the SSS trust fund but i still give my monthly contribution

the SSS probably wouldnt exist anymore by the time i retire hehe

insurance companies, pre need companies, financial institutions, etc...

they come and go

there is no sure thing

[batangmahal]

Opinyon ko lang ito so no offense to others especially those involved in pre-need. Pero in most cases pre-need is so not worth it na rin these days. Dati ok sya, pero nowadays ang baba ng return halos talo pa ng inflation. Might as well ilagay mo na lang sa bond fund ang pan education ng anak mo kaysa ibiggay mo sa pre-need.

i totally agree on this one!

[tidus1203]

people trust the system too much

Walang ibang tao mas may malasakit sa iyong pera kundi ang iyong sarili

don't expect other people to have malasakit on your hard earned money

if they lose it, it doesnt hurt them

i don't even trust the people managing the SSS trust fund but i still give my monthly contribution

the SSS probably wouldnt exist anymore by the time i retire hehe

insurance companies, pre need companies, financial institutions, etc...

they come and go

there is no sure thing

SSS is such a pain, mandatory loss of money ang tawag ko dyan eh Factoring inflation later on when you get into your golden years sigurado talong talo ka sa contribution mo VS makukuha mo by then. Of all the people, governments are the most inept in managing money too much beareaucracies and too much red tape.

[gonzo]

Please enlighten me medyo mahina tayo sa financial analysis ehh, if I have a educ plan that will be in use in 10 years time pa (1st year college anak ko nun) what is my guarantee na my educ plan provider is still around after 10 years?.. its like giving a false sense of security.. remember CAP? is there a government agency that regulate this?.. then why Pacific plans?

I just withdraw the educ plan of my son sa Pacific plan.. it may not be the best decision since I loss some interest and benefit that I will get after 10 year.. wheww... but I lost trust sa educational plan ....especially eto nanaman ngayon may crises nanaman.. I may loss some money but I still get my principal than having false sense of security at the end of the day wala pala akong ma aasahan.. and who Im going to blame?...Gobyerno by not protecting me?.. wala namng ganun diba?... my brother in law may 3 children puro naka CAP naawa ako sa mga anak kasi di lahat naka pag aral... Please enlighten me if I am wrong in withdrawing my sons educ plan... thanks

Looks like I did the right decision withdrawing my educ plan last year

[4JGtootsie]

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