Selling educational plan, life plan and all other pre-need plans is about to end because of the controversies they are facing nowadays.
I could be a victim of the CAP educational plan if not for my mathematical prowess. My friend asked me to join CAP in the early 90s just after my son was born. He gave me all the documents to fill up. But after computation, I found out that the money that I will get just in time for my son's college education will be less than the amount that I will get if I deposited the same amount in a bank. Also during that time, you could not withdraw your money just before maturity. If your son cannot use the plan, you cannot get the cash but instead assign the benefit to next of kin's children.
I pity my friend after the collapsed of CAP because he got 3 plans for his 3 children. I do not know how much he recovered.
NOW, Legacy and other pre-need companies are tumbling one by one. This is because of the loss of confidence and trust by the public. It will be difficult for similar business to thrive in this time of uncertainties unless businessmen created a different approach. Like banks, premiums of subscribers of pre-need plans must be insured with PDIC. Subscribers can withdraw anytime they want. Trust funds must be mandatory. Corrupt SEC Commissioner involved must be put to jail.
This day, the actors in this fiasco are Mayor Celso Delos Angeles, SEC Commissioner Jesus Martinez and Senator Mar Roxas.
