What is the difference between a PRE-NEED Company and an INSURANCE Company

[jobhim23]

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i agree with the thread setter.

every person can't afford not to have life insurance. this is the foundation of any financial planning.

however, insurance products are of different types. depending on its purpose. but its main function is NOT INSURE THE PERSON. but HIS INCOME.

[lorenzoleo]

i agree with the thread setter.

every person can't afford not to have life insurance. this is the foundation of any financial planning.

however, insurance products are of different types. depending on its purpose. but its main function is NOT INSURE THE PERSON. but HIS INCOME.

. Income Replacement.

[jobhim23]

simple mathematics:

kun imong monthly expenses 50k and ang imong life insurance 200k,
then kahibaw naka nga on the 5th month, pasmo na imong pamilya.

undang skwela mga bata.
...abroad si mrs ibilin mga anak sa paryente.
mas lisod kun naa utang bayranan.

[JamesCo]

IMG is not a Life Insurance Company right? It's not on Insurance Commission List. http://www.insurance.gov.ph/_@dmin/u...panies2011.pdf

[jobhim23]

IMG is not a Life Insurance Company right? It's not on Insurance Commission List. http://www.insurance.gov.ph/_@dmin/u...panies2011.pdf

right

it's not even a pre-need company

they are just brokers. in other words, third party sellers. not even agents.

the good thing is they tech people on financial literacy.

bad thing is, they ask you to sign up and earn in a multi-level marketing structure.

[lodyl]

i UP ta ni bi para daghan ang ma aware...

[makie]

The risk associated with pre-need companies are very high. There's no regulating body to check it. And for everybody's information, pre-need companies only exist in the Philippines (ngilngig gyud ning mga Pinoy = result, bagsak). AFAIK, pre-need companies give "guaranteed" returns. For example, CAP before guaranteed that they'll pay every policyholder's tuition fee no matter what the cost. The result? Since there's no governing body to oversee what CAP is doing with all the money, CAP invested it in properties which are not very liquid. CAP weren't able to dispose their properties that fast and also weren't able to cope up with the rising tuition fees.

As a general rule, never invest in pre-need companies/plans. Instead, get a life insurance for protection, health insurance and HMO for health purposes/concerns, save at least 3 months income in bank account/s, and invest in liquid securities for future goals (college education of children, retirement, etc.). That's financial planning at its simplest.

[BatmanBeyond]

Pre-need Companies in the Philippines Now under Insurance Commission


Pre-need companies in the Philippines are now under the supervision of the Insurance Commission.

The pre-need law was passed in December 2009 and the implementing rules and regulations (IRR) were signed in March 2010.

Visit the website of the Insurance Commission at insurance.gov.ph, and you will see the pre-need code and the IRR already published on the site.

You will also see the list of the 23 pre-need firms under Directory of the IC home page. However, the list on the IC was still the list previously prepared by the SEC.

The list includes the 23 pre-need firms that were licensed to sell pre-need plans as of December 2009:

Abundance Providers and Entrepreneurs Corporation (APEC) (formerly Pacific Plans)
AMA Plans
Ayala Plans
Caritas Financial Plans
CityPlans
Cocoplans
Danvil Plans (formerly Berkley International Plans)
Destiny Financial Plans
Eternal Plans
First Country Plans
First Union Plans
Grayline Plans
Himlayang Pilipino Plans
Loyola Plans Consolidated
Manulife Financial Plans
Mercantile Careplans
Paz Memorial Services
Philplans First (formerly Philam Plans)
Provident International Plans
St. Peter Life Plan
Sun Life Financial Plans
Transnational Plans
Trusteeship Plans

The only two changes from the May 2009 list are:

the addition of APEC to the list
change of name of Philam Plans to Philplans

For those who have complaints, inquiries or claims, you can address them to:

Public Assistance & Information Division

523-8461 to 70 local 102, 103, 105

pubassist@insurance.gov.ph

Pre-need Firms in the Philippines Now under the Insurance Commission | Working Pinoy

[annabelle]

Like! Everybody should be aware of the difference. This is a great topic...Thumbs up to you thread setter! Find a trusted Insurance agent now and invest.