Are you a pre-need policy holder like educational plan, pension plan or memorial plan? Does the recent news on the Legacy Plans make you wide awake at night thinking that your policy might be in danger like the ones that folded?
Perhaps this news is perfect for you. At least you’ll have a picture if you’re pre-need plans are still safe . Philippine Star lists these Pre-Need Companies in the Philippines that maintains enough trust fund in case the unexpected happens.
Here it goes:
MANILA, Philippines – The Securities and Exchange Commission (SEC) is studying the possibility of requiring pre-need firms to beef up their trust fund deposits to further safeguard the interest of the investing public.
Sen. Mar Roxas earlier called on the SEC to increase pre-need firms’ deposit contributions to the trust fund from the current five percent to 70 percent to ensure payment of their obligations to planholders.
According to the SEC, most pre-need companies have willingly set their trust fund contribution rates higher than the required five-percent minimum for the first year.
SEC documents show that eight pre-need firms offering education plans have an average 25.17-percent contribution to trust funds in the first year and an average of 58.87 percent in the first five years. These companies are Cocoplans, Danvil Plans, Eternal Plans, Grayline Plans, Loyola Plans Consolidated, Philam Plans, Sun Life Financial Plans and Trusteeship Plans.
For pension plans, the average trust fund contributions of 16 firms amount to 21.77 percent for the first year and 59.18 percent for the first five years.
Firms with contributions higher than the minimum amount required are Ayala Plans, Caritas Financial Plans, CityPlans, Cocoplans, Danvil Plans, First Country Plan, First Union Plans, Grayline Plans, Loyola Plans, Mercantile Careplans, Permanent Plans, Philam Plans, Provident Plans, Sun Life, Transnational Plans and Trusteeship Plans.
Only six firms offering life plans have contributions above the minimum required, averaging 14.9 percent in the first year and 51.8 percent in the first five years.
From a surplus in 2007, the local pre-need industry has incurred a trust fund deficiency of P46.83 billion last year.
Industry data showed that the end 2007 surplus was based on an assumed yield of 12 percent on their trust funds. Trust funds of pre-need firms reached P74.66 billion as against liabilities of only P67.86 billion.
Roxas also asked the SEC to prohibit the use of trust funds by trustee banks to extend loans to a pre-need firm’s directors officers, stockholders and to invest in the pre-need company itself. — Zinnia dela Peña
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