1. What makes a pre-need plan a better investment?

First, you get more than other investments.

If you go to a Bank and deposit, it will earn you between 1 - 3%. If you put a larger amount then maybe the Bank will give you a higher interest rate. But this will not be fixed over the life of the investment. With pre-need, your investment will earn from 6 - 7% and these higher earnings are guaranteed over the life of your investment.

Secondly, you don't have to die to get the protection offered by other investments although in case there is premature death, you will get the same protection as though you are insured.

2. How is my investment protected from possible company bankruptcy or other financial problems?

The investment is deposited into a trust fund and managed by an independent, competent and credible trustee bank. The trust can only be withdrawn to pay maturing benefits.

In addition, all pre-need companies are mandated to have a minimum paid-up capital of One Hundred Million (100,000,000.00). This is towering compared to other industries.


3. What are the different pre-need plans in the market?

There are three Basic types of Pre-Need Plans: PENSION, EDUCATION, AND LIFE PLAN.

Pension Plan prepares you for your retirement years, where you can fully enjoy financial independence and self-reliance the way you want to spend your savings in your old age.

Education Plan lets you invest for the education of your children in the future. This comes in two (2) types:

a. Traditional - covers the entire cost of your child's tuition fees
b. Fixed Value - Specifies certain amount allotted for the child's matriculation fees.

Life Plan prepares your family in case the planholder passes away. This comes in two (2) types:

a. Open-ended Life Plan - Considered a hedge against inflation as it guarantees memorial services regardless of cost
b. Fixed Value Life Plan - Assures payment of the money's fixed amount to take care of the planholder's memorial services.

4. Is it safe to pay my dues through an agent or should I personally transact payments with the company?

You can do both. It is safe to pay through an agent as long as you are issued an official receipt.

5. What if I fail to pay my dues on time or halfway through my subscription plan, I decide to stop my payment? Will I run the risk of losing my plan and all the money I have paid up or will my prior payments be reimbursed?

For plans not paid on time, you are given sixty days (60) grace period to settle your account. If the sixty days (60) grace period has lapsed, your account will be considered a lapsed plan. When your plan lapses and that anything happen to the planholder, the beneficiary will not receive anything.
The planholder is again given two years (2) to reactivate his account by means of updating or redating. Updating is paying all amount due plus interest accrued on the plan. The maturity date of the plan will still be the same. By redating, you will only pay the amount that corresponds to the installment due but the maturity date will be extended.

If the planholder decides to stop payment, he will receive a specific amount as specified in the contract.

6. What if something happens to my child or he decides to drop out of school before availing of the entire education plan, what happens to the plan?

For fixed value plans, the planholder can still get the remaining educational and post availment benefits.

For traditional plans, the remaining unpaid benefits can be converted into cash.

7. Will my child still be able to avail of his education plan even if I was unable to complete the payment due to permanent disability or death?

Yes, the plan is considered fully paid in case the planholder dies even before completing payment, he can still avail of the benefits.

8. Who will avail of my plan benefits in the event of my early death and I had no beneficiaries listed in my plan?

Benefits will go to the planholder's estate. However, most companies require a beneficiary.