I bought a pension plan from Philam about six years ago and finished paying for it August of 2007. Recently, I received a letter offering me an enhanced availment benefit which allows me to cash in earlier than the maturity date. The offer is I’ll make about Php85,000 out of Php650,000 I paid.

Now that there are talks that Philam is selling the company, should I pull out my money?

I read that AIG is the parent company of Philam which means AIG may sell Philam due to its financial woes. One of the interested parties is the Yuchengcos, who if I’m not mistaken are behind the CAP scheme.

Please enlighten me.

Thanks

I just happened to find this blog and came across the entry sent by marlene, on Oct. 9th.

Just a bit of info: the Yuchengcos has nothing to do with CAP but the Sobrepenas. The former owns/controls GREPALIFE, MALAYAN, PACIFIC PLANS, RCBC, RCBC Savings and a lot more companies.

I was never a firm believer in pre-need firms ever since I was burned with CAP. You are better off saving your money and investing it in mutual funds for the long term since you can liquidate it whenever you want.

Marlene,

Allow me to give some points to your querry. there is no reason to panic. Your investment with Philamlife is safe and sound assured investment. The reason why these companies(CAP-pacific plans, legacy,TPg, Professionals, Petplans, Plantinum) closed shop is because they offered open ended plans or traditional plans which means these companies are going to pay the tuition fees of your child no matter how much is the tuition no matter what course by the time your child enters college.AT first it was okay, but in 1992 when the SEC deregulated the tuition fees of all schools and university in our country, the open ended has lost its ground. Schools now can increase their tuition fees no matter how much they want. As hight as 50, 40% yearly. unlike before 1992, schools are allowed to increase not greater than 5% every year. CAP, Pacific..etc should have stopped selling traditional plans by 1992. They insisted on selling until 2004. Their reason is they will not get bankrup because they are the no.1 pre need in the industry.
And so after how many years of false declaration of trust fund assets. The SEC declared CAP bankrupt in 2004.
Sad to say even the president of Philamlife is a victim of these traditional plans. However, Philamlife is a very stable company, most trusted and diversified liquid portfolio intact. They did not sell even a single traditional plan. They are the original in Fixed Value plan.
Yes it’s true, AIG owns Philam group of companies but the investments, trust fund assests stays in the Philippines. AIG is only selling the ownership. All the businesses stays here no matter who buys Philamlife, Philamplans.
It’s not true that Yuchengco group of companies is interested in Philamlife. They are trying to destroy Philam. they are trying to maligned the minds of the Pilipino people that Philam has joined the bandwagon of dissolved preneed companies.
Mr.Yuchengco is unethical kind of person. when the news erupted that Aig is selling Phiamlife, he was the first to show interest. How much can he afford to say that when his very own Pacific plans is bankrupt since 2006. My advise to Mr. Yuchengco is settle first his obligations to all pacific plans clients, pay their education as promised in the contract and afterwards he can talk of wanting to buy Philamlife.
Mr. Yuchengco has the money no doubt about that. He raked in millions or even billions of pesos from hard earned money of 35,000 Filipinos with open ended plans. Mr. Yuchengo is facing a class suit againts the parents of 35,000 education plans which they call themselves “Parents of broken dreams”.
After filing bankruptcy he changed the name of Pacific plans to Lifetime plansss.
if we’ll sit in a table, i will not run out of words. I have all the reasons to tell you why you should’nt pull your money out of Philamlife. You can ask SEC the governing body if how much is their declared Trust fund and if it’s really liquid. I assure you, they will tell you that you’re investment if safe. PHilamlife is most honest and most prudent and most compliant to company to SEC rules and regulations.
The reason why nobody is buying Philamlife up to now because the value is so high. Philamlife is valued at 2.5BU$. Whoever buys this company will be the top spot in the industry.
If i were you, just leave your money at Philamlife and when maturity arrives, I assure you, Philamlife will stand and deliver the promises.
Panatag ka with Philam.

Hi Julia, it seems that you are well informed. I jsut want to ask you a favor, if you know anything abouyt LIFETIME plans, you are right, my pension plan was Pacific Plan before but due to the bankruptcy, it was later changed to LIFETIME plan explaining to us that they want the pension be separated from the educational plan, do you think we have a future here in pensionplan? I am a poor OFW, who just wanted to have a good future, something that is not extravagant but just a comfortable one. I am worrying about the hard earned money. Please, if you have any information onthis, and how you can help me (if any).thanks a lot!

hi. i’m an ofw invested my money in educational plan from pacific plan. since pacific plan was sold to other company, can i get my full amount invested when my plan mature. if the new company close before the maturity of my plan, can i still get my full amount of money invested. please help me what to do

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