Good Article about Pre-Need Problems

[HenryLiwanag]

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Just to add, insurance is a protection of something, either a thing or a living thing. In which case, you can always compare Life Insurance to a pre-need.

Life insurance can be considered as income protection for the family just in case the bread winner dies.

Pre-need does the same, however the Governing body here in the Philippines is not the same. Life insurance is governed/controlled by the insurance commission while Pre-need is governed by SEC (Securities and Exchange Commission)

Its clearly stipulated in the laws under the insurance commission that any closure of any insurance company, the orphan accounts (the investor/the insured) will always have (step parents) another insurance company by way of purchase/ reinsurance (bidding among life insurance company) of the closed insurance company. So that the insured are still insured.

While with the SEC (it is where businesses are registered) if the pre need insurance dies, simply it dies since its like a "popcorn business" or a "sewing shop business" in short, no other pre need company is obliged to bid for such pre need company.

Great additional info. The long term solution on pre-need problem therefore lies on the government regulations, very enlightening

[lorenzoleo]

Just to add, insurance is a protection of something, either a thing or a living thing. In which case, you can always compare Life Insurance to a pre-need.

Life insurance can be considered as income protection for the family just in case the bread winner dies.

Pre-need does the same, however the Governing body here in the Philippines is not the same. Life insurance is governed/controlled by the insurance commission while Pre-need is governed by SEC (Securities and Exchange Commission)

Its clearly stipulated in the laws under the insurance commission that any closure of any insurance company, the orphan accounts (the investor/the insured) will always have (step parents) another insurance company by way of purchase/ reinsurance (bidding among life insurance company) of the closed insurance company. So that the insured are still insured.

While with the SEC (it is where businesses are registered) if the pre need insurance dies, simply it dies since its like a "popcorn business" or a "sewing shop business" in short, no other pre need company is obliged to bid for such pre need company.

That is why I didn't get any pre-need plans. I only get Health insurance, life insurance, and mutual funds as my long term protection and savings. Sometimes ang insurance kay maalaan ug pre-need in fact it is totally different from each other .

Mao na usahay ma daot lang sad ug apil ang ngan sa insurance kay maalaan man gud na pre-need. Hehehe! Mao na na dapat ma educate jud ang mga tao about aning mga butanga.