When you’ve been socking away money religiously to pay for an education or pension plan, sacrificing personal comfort and doing away with little treats in the process, and you find that dream of security snatched away by a corporate failure, you don’t just hurt. You are likely to lose belief in the system. You are likely to blame everyone you can think of—the government, the agent, the company. You may even lose belief in yourself and in the very basic principle of preparing well for the future.
I have learned to live with my investment mistakes, but it hasn’t been a walk in the park. I have decided that there’s nothing else to do but learn from it and start over.
If I had known some of the things I know now, I would have handled the situation in a more mature way. I would have been more empowered and less freaked out! So, here’s a quick guide for those who find themselves victimized by failures of pre-need plans:
- Once the closure of a pre-need company you have invested in is made public, make sure that you go to the website of the Securities and Exchange Commission regularly to stay on top of any announcements. Do I need to emphasize that you should constantly check the business pages of INQUIRER.net?
- Check your documents and make sure they are in order. Getting your money back will depend in large part on whether your documents are intact. You will need to secure the copy of the plan contract, the certificate of full payment if you have already paid in full. If you haven’t, you need to make sure that the official receipts of your payments are still with you.
- In the case of planholders of Legacy Consolidated Plans, Inc., Scholarship Plan Phils. Inc., and All Asia Plans Corp., you need to file on or before March 31, 2009 a sworn complaint. This will increase your chances of getting back your money, so do this as soon as possible.
- You also need to present your updated and complete mailing address and contact numbers. Go to the Non-traditional Securities and Instruments Department of the SEC. In Ortigas, the landline is 584-6058 and the head of the department is Director Jose Aquino.
- What can you expect? Once the courts have approved the dissolution of the company, the SEC will appoint a liquidator and it is with this company that you will claim what is due you under your policy contract.
Any update for The Professional Group (TPG)? I already paid my pension plan in full and also obtained my certificate of full payment. I cant find any update on the web regarding their office and operation. This was the same company managed by the Colaycos right? Hope to find some update on the issue..
Salve,
Any update for The Professional Group (TPG)? I already paid my pension plan in full and also obtained my certificate of full payment. I cant find any update on the web regarding their office and operation. This was the same company managed by the Colaycos right? Hope to find some update on the issue..
I emphatise with you all who have had harrowing emotion caused by Preneed sales agents and their sponsors, a.k.a. SCAM ARTISTS.
My cousin has had double whammy "'carga de conciencia" over this Preneed scam. Through her persuasion the mother's hard earned savings of sixty thousand pesos were exchanged for a lot of promises that became house of cards, nightmares too for her every now and then.
What pains her the most now is the fact that she was also a victim and was a willing participant while bogus operation of this Preneed scams progress.
Gone was the sixty thousand pesos the mother entrusted to her but the guilt deeply itched into her persona can not be erase for as long she lives, she said.
Someone said," experience is the worst teacher, it gives test before the lesson."
So, remember: Caveat emptor, always.
Keep the faith.
"kaya ako, hinding hindi ako kukuha nyan! iipunin ko na lang sa ilalim ng unan ang pera ko! kahit walang interes...
NO COMMENT AKO JAN.. HEHEHE
Salve,
My CAP Pension Plan was matured last May 2007 but till now I did not recieved yet the payment. Do I have still the chance that I can get the money back. Need your advise please on what steps that I have to do.
It gives us hope that in the end the hard-earned we paid will eventually be recouped through tuition payments CAP promised in the contract.
That is right, pre-need in our country is not an honest industry and nowhere can you find accountability. Sorry state indeed.
Company CEOs and Presidents should be jailed for any failures these companies have, they have been entrusted with money in good faith and in good faith must return it.
We have a long way to go
I don't understand why people need to put money into that plan when they can save the money for themselves, For their children education. Its safer that way, Don't you agree!
Hi Salve,
I have education and life insurance policies with Manulife.
When I took the policies with Manulife several years ago, I did not find any "red" flags with the company.
But in this time of economic crisis, we never know. What are your opinions with Manulife? Are they a stable enough company? Thanks!
To Slimshady,
FYI on April 28, 2004 Manulife Financial Corporation and John Hancock Financial Services, Inc. (including its Canadian sudsidiary Maritime Life) completed the merger into one company under the name Manulife Financial. Joahn Hancock is now a wholly owned subsidiary of Manulife Financial.
For further information about Manulife Financial and John Hancock's history and corporate governance you log on at Manulife.com
I wish Manulife good luck in their pursuit to acquire Philamlife Insurance.
Salina,
Plans like this are needed because with the way costs rise every year, simply "saving" is no longer viable. With the cost of education going up by double digits almost every year, how can you save when most deposit products only offer 5% interest at most? Furthermore, with the small amount you get from SSS and the lack of affordable health care, pension plans are also a good idea.
The idea behind these plans are good. It is in the execution that the problem lies. For example, commissions and other incentives given to agents (Rolex watches, trips abroad) increase the operating expenses of the companies. Consequently, the cash left after paying for all of those, has to earn a higher rate of return just to meet the promised returns. Also, the strict sales quotas that are sometimes required means that agents are placed in a tough spot of possibly selling to people who really aren't suited for the product just to meet quotas.
In all, times like these shouldn't scare us from investing or planning our financial future. Rather, it serves as a pretty pointed lesson on the need to continually educate ourselves and to always remember that, at the end of the day, we should be the ones to handle and protect our money and not rely on some other entity whose primary purpose is to earn huge profits using our money.
Can the writer advise me how can I file a complaint against Legacy Pension Plan? I now reside outside the country. Thank you for the helpful information.
Espie, you may want to read the article on our website "When banks, preneed firms fold" which I also wrote. It has the details on what to do and when the deadline is. Here's the link:
http://business.inquirer.net/money/personalfinance/view/20090125-185496/When-banks-preneed-firms-fold
Because you live outside the country, find someone who can constantly follow-up with the Securities and Exchange Commission. Prepare all the documentary requirements and make sure you also have a Special Power of Attorney. You may want to call Jose Aquino's office at the SEC for more information relevant to your particular situation. The number is 584-6058. Good luck and let us know how it goes.
slimshady, there has been no reports at all of Manulife having any financial problems. I checked with the Insurance Commission: it is in the top 10. Please understand, however, that you still have to do your own due diligence in things like this. Good luck!
Sonny, I suggest you check with the office of CAP where you live. They have paid out some beneficiaries last year. You might not get the amount stipulated in the original contract, though. Good luck.
Any news on Philam? I have an education plan which will be fully paid by Dec of this year (college plan for my 4 year old boy-we will be in our 50's when he enters college and might be out of work by that time). My husband also has a pension plan which will be fully paid in 2 years. We temporarily stopped paying our monthly amortization for both after news broke that Philamlife will be sold. We are confused whether to continue or stop with all these pre-need failures. Hope to hear your advice.
The Government should help thru bailout the pre-need educational plan because these are related to the education of the benefeciaries and the Government is partly to be blaimed because of the following reasons:
1. They never consulted all parties and consider the consequences after they liberalized or deregularized tuition fees. For your information they changed the rules on tuion fee increases from controlled to free for all rate of increase. and the problem on open-ended plan comes out.
2. After all of this problem in the year 2005 CAP pre-need problems, the New Pre-need Act is still pending in Congress as of now. Three years and nothing happened.
3. SEC is not doing their job well.
In regards with the so called losses on investment due to US economic slowdown, or regarding the profit of 12% before down to 6% now due to Global financial crisis, is not an accepted argument. Global economic crisis has just happenned in the year 2008. Planholders money was invested long time ago, 5years installment and additional 10 years until maturity, but where is the profit since then. The annual profit that it generates for 15 years. They use our money. Don't blame the economic fiasco of 2008. There was money but where is it? They might use the money somewhere else. They need to be investigated. The owner of CAP is the owner of MRT in EDSA.The CAP has ceased and MRT was born. Where is the money? Pacific Plans of the Yochencos(The owner of RCBC) is gone and yet planning to buy PhilAm Life. Where is the money, including the profit for 15 years. Needs an answer.
Dear Planholders,
Its very important that we stay united in the battle for what we know is right, and the future of our children.
I was a Pacific Education Plan policyholder who invested 18 years ago because (1) I wanted to give my newborn son the perfect christmas gift and a good future (2) I wanted to show that I was a loving and responsible parent (3) I was made to believe that the company was stable because the agent was so proud of the track record of the Yuchengcos and how pro-people they were....
Boy was I wrong!!!! When the shit hit the fan, all that talked about goodwill got thrown out the window. When I went to their office nobody would entertain me. I got a chance to speak to that lady lawyer of theirs (who several years later hung herself) and was given an arrogant spray of legal gobbldygook...
To this day, am still hopeful that things may work out....but i have learned not to put my faith in supposedly upright and honorable businessmen (rizal must be turning in his grave).
So I say again, stay strong. Speak out and let the truth come out.
thank you for this info. I have mailed a letter to a Name of the President of Pryce Plans Inc. that appears in my Policy in this address(15th Floor Pryce Center
1179 Chino Roces Ave.,
Cor Bagtikan, Makati City) last november but until now, no reply from them.
Am outside of the country and its a bit expensive communicating by phone to Jenette Ramos. Is there a way to contact her by email? Will she entertain inquiries regarding Pryce Plans Inc. PPI offices in Visayas are now close and its hard to communicate with them already.
Yes, any news with Philam Group? I also have an educ plan for my daughter and this year is our last payment for the premium(P35K+ per annum). How about Insular Life, is this still going strong, I am also a planholder!
Before it was shown in TV Patrol that Pryce Plans Inc. is also on the verge of Colapse, I called up Ms Jenette Ramos in telephone number 584-6058, she give me three telephone numbers of Pryce Plans Inc. w/c is 844-7217,813-2109,897-5138; sad to say 844-7217 and 897-5138 is already out of reach. And when I call telephone number 813-2109 it is diverted/rerouted to Tel. No. 894-5901, I said to myself, how come I dialed 813-2109 and the who answered is customer Service of Intelicare. Maybe its already Intelicare and not Pryce Plans Inc. anymore?
Does anyone have personal knowledge of active Telephone Numbers for Pryce Plans Inc.? I wanted to communicate with PPI because next year my son will be in College already and in time that I need my Pre-Need for his College Tuition Fees.
Does any one have personal knowledge of active Telephone numbers of Pryce Plans Inc.? The one that given to me by Ms. Jenette Ramos of SEC are all not in service if not its with the other company already. Please share if you have PPI active numbers. Impossible that they dont have Telephone numbers when they are still operating. Thank you to whoever can give their number.
help. how can i have a copy of certificate of full payment? i lost mine.. huhu.. please help.
i paid cash for an educational plan from Platinum Plans. how can i get back my money? any news about them? platinum planholders, pls help.
I want to know if the Platinums Plans, Inc is still paying for the plan holders? If so may I know their contact nos and its address because my son is in 1st year college now so i need it for his tuition fees. Thank you
hay!!!!!!!!!! naku sa mga tumatawag sa PRYCE wala na po kayong matatawagan kahit anong TEL NO. na binibigay ng SEC. maliban siguro yong FAX No. nila
kung magsasadya naman po kayo sa kanilang office wala rin po kayong maapapala dahil puro pangako lang ang sasabihin sa inyo.
pag may naka line-up na check. na para sa inyo, di pa ninyo natatanggap mababwasan yon ng php2,000 bayad sa gamot na ibibigay sa inyo.
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