Unsure of the Insurers; The Declining Pre-need Industry

**Horsepower** · February 14th, 2009 01:18 PM

The safest thing to do these days is keep your money AWAY from institutions such as insurance/pre-need.

you can buy a land for example, then sell it later on when you'll be needing the money.

**4JGtootsie** · February 14th, 2009 02:27 PM

Ask ko lang about manulife kasi may plan ako sa kanila.

**uls** · February 14th, 2009 02:37 PM

only company insiders can know early if a company is in trouble

usually by the time the govt, the media, and the public knows about it, it's too late na

**Horsepower** · February 14th, 2009 06:42 PM

4JG: Media too silent about Manulife. Might be a sign of an impending trouble.

You might wanna consider taking your money back - while you still can.

**chua_riwap** · February 14th, 2009 08:55 PM

Sabi - sabi, 4 pa raw ang mga "naghihingalo" na. Isa rito yung Pryce. Sino naman yung 3?

Sa akin naman sa Cocolife.

**Horsepower** · February 14th, 2009 09:43 PM

nakakatawa nga yung Pryce, ang binibigay LPG! hahahaha

**chua_riwap** · February 16th, 2009 01:48 AM

^^ Eto na yun HP........

Cash nila nasa P100K + na lang?

http://www.philstar.com/Article.aspx...bCategoryId=68

16 Feb 2009

Pre-need planholders get LPG, memorial lots!

MANILA, Philippines - Cash-strapped pre-need firm Pryce Plans Inc. has opted to fulfill its obligation to plan holders by paying them in kind – specifically, through medicines, cooking gas and memorial lots.

Pryce Plans Inc. is hardly able to pay its obligations to plan holders in cash because its trust fund is illiquid, according to the Securities and Exchange Commission (SEC).

Based on data obtained from SEC, Pryce Plans Inc. has a trust deficiency of P56.17 million.

Reports submitted by Pryce Plans’ trustee banks to the SEC showed that the ailing pre-need company had reserves of only P113.23 million, short of the required 20 percent reserve of P168.4 million. These reserves comprised investments in the stock market and cash amounting to only P106,839 which is just 0.01 percent of the firm’s total trust fund.

As of end-December 2008, Pryce Plans had a total trust fund equity of P845 million, P591 million of which is for educational plans while P256 million is for pension plans.

The payment-in-kind scheme includes cooking gas from a sister company Pryce Gases Inc., medicine from another sister company and memorial lots.

Pryce Plans blamed the non-renewal by the SEC of its license to sell pre-need plans and the negative publicity involving the collapse of two of the industry’s major players – College Assurance Plans and Pacific Plans, for the deterioration in its cashflow generation.

As of end last year, Pryce Plans had assets of P1.28 billion as against total liabilities of P974.56 million. From P1.87 billion in 2004, its assets have been depleted by 31.7 percent.

Aside from Pryce Plans, three more pre-need firms are believed to be on the brink of collapse due to a funding shortfall.

The Federation of Pre-Need Plan Companies has asked the SEC to relax its capital and trust fund build-up requirements to ensure its survival amid a deepening global financial turmoil.

For this year, the SEC has licensed 24 pre-need companies, namely Ama Plans, Ayala Plans, Caritas Financial, Citiplans, Cocoplans, Danvil Plans, Destiny Financial Plans, Eternal Plans, First Country Plans, First Union Plans, Greyline Plans, and Himlayang Pilipino Plans, Loyola Plans Consolidated, Manulife, Mercantile, Paz Memorial Service, Permanent Plans, Philam Plans, Provident Plans International, Prudential Plans, St. Peter Life Plans, Sunlife Financial Plans, Transnational Plans, and Trusteeship Plans. -

**Galactus** · February 16th, 2009 09:28 AM

Originally Posted by 4JGtootsie

Ask ko lang about manulife kasi may plan ako sa kanila.

I have 2 policies with Manulife: Pension and Life.

As of now, I'm pretty confident. It's one of the biggest insurance companies in North America and while I haven't reviewed their financials, it seems they're not affected. From what I know, conservative kasi ang management nila and outlook.

I received a pro-forma letter signed by the company President recently, assuring their planholders of their stability. Kahit naman magkaroon ng problema (kung sakali) yung parent firm sa Canada, mukhang matatag naman yung local subsidiary nila. So, no worries for me at the moment.

**tidus1203** · February 16th, 2009 11:10 AM

Originally Posted by uls

only company insiders can know early if a company is in trouble

usually by the time the govt, the media, and the public knows about it, it's too late na

True! Let me reiterate what uls said previously. Ikaw lang may malasakit sa pera mo! IKAW LANG at WALA NG IBA! They are there to rake in commissions, sales, interest margins, and to hell with your money! Basta ako I never put money to pre-need and all that thingamajig, I invest my own money!

**4JGtootsie** · February 16th, 2009 02:54 PM

Originally Posted by Galactus

I have 2 policies with Manulife: Pension and Life.

As of now, I'm pretty confident. It's one of the biggest insurance companies in North America and while I haven't reviewed their financials, it seems they're not affected. From what I know, conservative kasi ang management nila and outlook.

I received a pro-forma letter signed by the company President recently, assuring their planholders of their stability. Kahit naman magkaroon ng problema (kung sakali) yung parent firm sa Canada, mukhang matatag naman yung local subsidiary nila. So, no worries for me at the moment.

Nakahinga na ako!

I know most investments have risks but being conservative makes a big difference. Im crossing my fingers.