PEP Coalition

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Pre-need sales continue sliding

June 6, 2009

MANILA – Pre-need firms continued to see their revenues slide in the first quarter despite selling more plans, data from the Securities and Exchange Commission (SEC) showed.

Revenues fell by almost a fifth to P3.2 billion, even as the number of plans sold rose to 62,882 from 53,825 in the same period last year.

The public continued to stay away from education and pension plans, preferring life plans, whose sales jumped by almost half to P2.03 billion in peso terms and by more than two-fifths to 52,173 in terms of plans sold.

Sales of pension plans, which face competition from other investment products, continued to decline, as well as of education plans, which carry the stigma of failed pre-need companies unable to pay clients.

The number of pension plans sold dropped by almost a third to 9,442, and sales, by more than half to P1.05 billion. Education plans fared worse with the number of plans sold reduced by more than half to 1,267, and sales, by more than three-fifths to P173.19 million.

Pre-need sales have been falling since January 2008.

Caesar T. Michelena, president of the Philippine Federation of Pre-need Companies, explained that customers nowadays prefer to buy more but cheaper plans.

Mr. Michelena, who also heads Cocoplans, Inc., said life plans continue to register growth because of the active effort of companies to market these products and customers’ negative perception of education and pension plans.

“We are still looking at growth but maybe not as substantial because of the economic conditions,” he said.

On Monday, the SEC ordered pre-need companies to avail the services of independent auditors that would review whether they are managing their trust funds according to its standards or not. The auditors would submit their findings on July 15.

Mr. Michelena, however, does not see this having an effect on the industry’s performance.

“It’s really more of administrative requirement… It would have no major impact overall,” he said, pointing out that pre-need companies already employ external auditors to verify the valuation of their trust fund assets.

Pre-need companies now number 22 from 24, after the regulator revoked the license of one firm to sell plans and suspended another due to financial difficulties. — Don Gil K. Carreon

as of 06/06/2009 2:26 AM


June 6, 2009 - Posted by | International Newspapers/Web News |


  1. ano na po kaya ang update about sa mga bumagsak na pre-need companies like Permanent Plans?

    Comment by pEDo | December 3, 2009

  2. Pre-need plans na ang version ng pyramid scam for this decade.

    Flawed talaga and pre-need plan model. Even worse, reactive and regulations in place. Hindi pro-active. The SEC was late in suspending PrudentialLife Plans, Inc. license to sell pre-need plans.

    If you read the SEC Order dated 20 April 2009 cancelling the license of PrudentialLife Plans you’ll come across the fact that based on the Acturial Valuation Report dated 31 March 2008 the company has Php 3, 641,624,725.00 deficiency in its trust fund.

    How on earth will PrudentialLife make up for that amount of deficiency? On top of that, they can’t sell pre-need plans anymore.

    It’s anybody’s guess how PrudentialLife will be able to recover. Heck, Lazarus came back from the dead…maybe PrudentialLife too! I think not.

    PrudentialLife is still liquid…But don’t look beyond 2014. The company itself admitted that their “Trust Fund has sufficient liquid assets to service the obligations of the company to its planholders for the next five (5) years.”

    That means for those waiting to benefit from their pre-need plans with PrudentialLife Plans, Inc., it is only good up to 2014. Beyond that, a rehabilitation plan is the brightest scenario. Worse comes to worst…BANKRUPTCY!

    Comment by Preneed Plan Holder | December 8, 2009

  3. Good Pm po sa inyo…alam kopo kayo lang po ang makakatulong sa akin…Wala po akong ibang naisip kundi kau..Kc po naging biktima po ako ng PHILAM Plans matagal ko po itong tinago ,dahil hindi ko po alam kung anu po ang dapat kung gawin…
    last 2008 po may tumawag po sken philam plans na nagsasabing may free accidental insurance daw ako at kailangan kailangan po ako pumunta sa office nila sa makati.Di na po ako ngatubili at nagpunta po ako,pero ang sabi sken magdala daw po ako id,credit card o checking account..pagdating ko po tatlo po ang humarap saken at mahabang usapan.. hanggang sa napapayag po ako kumuha ng bagong preneed insurance, bago ko nakuha ang free accidental po…Hidi ko po alm kung tama dhil ang galing po nila tlaga makipagusap at napaoo nila ako napapirma na po ako sa isa pang pre need na inaalok nila bago ko po nakuha ang free accidental insurance…umuwi po ako na tulala at di napagplanuhan ang pagkuha…gusto ko pong bawiin ang pagpirma ko pero hindi na daw puede,maari po sana tulungan nyo po ako kung anu po ang ggawin ko po…ilan beses po ako humingi ng tulong sa knilang office at cnabi ko po ang nangyri pero hindi na daw puede…Sana po matulungan nyo po ako…

    Comment by rowena facunla | March 22, 2010

  4. Updates?well, ang alam ko CAP is still open and despite the fact that mahirap na for them to repay customers, they still strive to pay people.

    It takes time because ofcourse, it’s hard especially because they are following a court mandate of how they should pay people.

    Some people think that CAP is bankrupt, which is not the case. I found out that CAP is paying here is a site and an article about it.

    hope it helps enlighten people.

    Comment by Nanny Mcphee | October 7, 2010

  5. Hi Everyone!

    We are able to make the tagalog version of “The Truth About CAP”

    Please visit

    You can leave questions, comments or suggestions if you must.

    Comment by Maria Ann | November 11, 2010

  6. new news from CAP Philippines,

    * Valiente, Aidan – 62-96-01-01-A00505
    * Angeles, John Paul – 60-74-72-01-A05617
    * Capistrano, Julius – 01-19-28-01-002021
    * Sia, Ansley – 60-76-07-01-A1694
    * Lobramonte Jr., Crisanto – 77-74-51-01-H0258
    * Carait Jr., William – 60-74-10-01-A1419
    * Nabor, Rafael – 21-02-31-01-00208 – P100,000.00
    * Bondoc, Rebecca – 57-74-38-01-A0665 – P100,000.00
    * Barrion, Juanita – 57-82-14-01-00001 – P200,000.00
    These are responses to the following SFA numbers!

    Comment by MARIA ANN | January 10, 2011

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