Good Article about Pre-Need Problems

[cirext]

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Yes, wala nana. Stop selling na na. But ang return of investment sa mga planholders before, cge pa man. Wala man na wala ang Prudential Life. Hehehe! Mao man juy mahadlokan sa uban na ni sira daw. Hehehe! Cge pa ilang services pero wala na gi pa sell.

its good if that's the case...
to implement the commitments first..
when man sila mobalik, bac unyag mamatay ang company?
whats their new source of income now?

[cirext]

kanang Pre_need comprise for educational plans,life plans ug pension.

But kung mu sulti kag insurance, Insurance is a security to protect your assets and investments for today and for tommorow.

Assets:
1.) Car
2.) House
3.) You
4.) Business Establishments
5.) Your health

ok..thanks for enlightening

[lorenzoleo]

Ok Your welcome. I Hope that information is understandable for everyone.
I really know what is the mission of insurance companies.

Insurance Industry is a very broad industry, daghan kaayong klaseng insurance. Hehehe

- Health Insurance
- Life Insurance
> variable
> whole life
> term
> equity term
- Non-LifeInsurance
> fire
> motor
> building
> accident

etc. Hehehe! Nosebleed, dako kaayo ang scope.

[cirext]

On the 1st post of this thread bro can u summarize what the problem is?
Pasensya na ha.. i really don't like long readings

[lorenzoleo]

To make the story short.

One reason believe that many of the plans that many pre-need companies were selling products that are not ‘actuarially’ sound. According to Wikepedia.com, “Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in the insurance and finance industries.” Simply put, we can surmise that pre-need plans were lacking in actuarial studies which is probably a big reason why pre-need companies sold products that may be flawed by design.

Another probable reason is wrong investments by pre-need companies. Yields will always be a function of risks. I noticed many pre-need companies are heavily invested in real estate and other riskier and non-liquid investments. We all know what happened to the real estate industry… imagine a company that you invested in putting a bulk of their investments in real estate? When maturities fall due and you find your investments with minimal growth, or worse, illiquid, how will you meet your obligations? How do pre-need companies really invest their funds? We only hear about their trust funds but what are in those trust funds? It have been great if these companies are wholly transparent with what they do with their planholders monies. By contrast, life insurance companies are heavily invested in bonds, mostly treasuries.

Flawed design & poor investment decisions are a reflection of management competence. Not all pre-need companies are in trouble although there are just very few of them that are ‘strong and stable;. When you look at this ‘strong and stable’ pre-need companies, you will see that they employ prudent investment strategies, ‘actuarially sound’ and probably employ competent management teams. Sadly put, the majority of the players in this industry are in catatonic state leaving their planholders shake their heads in disbelief and grief.

[lorenzoleo]

Kung naay gusto mu kuha ug educational plan sa ilang mga anak karon, it is better to put that long term savings in an insurance industry or in a mutual fund. Me personally, wala jud ko ni butang ug pre-need.
Kung naay juy tao gusto mu butang ug pre-need see to it, mangutana jud mog maayo sa inyong broker.

[cirext]

if u were them, where would u invest & y?
(heheh ms gay question ni bro,,hehehh)

[lorenzoleo]

Hehehe! Insurance, bonds and mutual fund. Diha ra akong long term vehicles. Kung short term, mag business. At least people know how to save the right way aside from time deposits.

Insurance, bonds and mutual funds are highly regulated by the government.
It is the safest place to put long term investments.

Please don't put your savings in the piggy banks. Hehehe! Let your money circulate in the economy. Especially in our country.

[noliverh]

to make the story short, we should not lay our money on the banks as our long term investments? anha jud sa mga mutual funds and bonds? tinood ba bro?

[lorenzoleo]

to make the story short, we should not lay our money on the banks as our long term investments? anha jud sa mga mutual funds and bonds? tinood ba bro?

Ok ra man sad sa bank, pero ang problema karon ang inflation. Hehehe! Importante lang daghan kag gi butangan na basket, dili ra sa usa ka basket.