Pre-need firm set to beef up education plans

Pre-need firm PhilPlans Inc. of the Tanco Group has filed applications with the Insurance Commission to launch three new education plans in a bid to capitalize on a market that has recovered from the stigma of unfulfilled commitments and unpaid claims.

According to PhilPlans president and chief executive Monico Jacob, the company’s education plan, branded Prodigy, has been selling well these past months—an indication that people have started to trust pre-need firms again with their children’s future education needs.

“We want to help bring back interest in education plans. Filipinos really want to go to school, and education plans are a way to allow them to do so,” he told the Inquirer.

Holders of PhilPlans education plans have nothing to worry about as the company has a trust fund base of close to P36 billion—half of the industry total of more than P70 billion, Jacob said.

According to the company’s official website, more than 80 percent of PhilPlans’ trust fund was placed in “highly liquid investments,” including government securities and short-term deposits. These investments are all professionally managed.

The company last year paid more than P2 billion in benefits to its plan holders, with education plans accounting for P680 million.

PhilPlans’ pension plans and life plans are also selling “very well,” Jacob said.

PhilPlans currently has more than 300,000 plan holders. It has been under the Tanco Group since October 2009, following its acquisition from the Philippine American Life and General Insurance Co.