A study on the Philippine pre-need industry

Date of Publication

1994

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Abstract/Summary

The pre-need industry stands firm as it grows through times of crises in the country, specifically, economic and political instabilities, and financial distress, both local and international. The industry is experiencing continuous growth, since it counters inflation and instability, which provides security for the people.Due to the growing complexity of people's needs, the pre-need concept came about. The pre-need concept answers to specific needs of individuals, that is, memorial, pension and educational needs. The group featured five pre-need companies offering plans for these needs, namely, College Assurance Plans, Inc., Comprehensive Annuity Plans and Pension Corporation Pacific Plans, Inc. Philam Plans, Inc. and, Prudentialife Education Plan, Inc. The plans are offered in a wide variety of packages wherein each individual can choose from, depending on their preferences and capabilities.In the case of memorial plans, demand for memorial plans increase because people saw the practical reasons for availing such plans for a need that is surely to happen. Filipinos have always beared in their minds the importance of education. In fact, majority of the country's population are literate. Our country produce highly skilled men and women. However, many of our countrymen are seeking for greener pastures in other developing countries. Thus, education is a traditional stepping stone for Filipino families for a good and better life. For pension plans, after retiring from long years of hard work, retirees are faced with financial difficulties. Hence, pension plans are means of being able to still support themselves after loosing the earning capacity which may be due to old age and physical disabilities.The study uncovered the following highlights about the pre-need industry:A company wanting to sell pre-need plans must be duly licensed and registered with the Securities and Exchange Commission. Sales associates who are representing a company to sell pre-need plans must likewise be licensed. It is important for a pre-need company to always keep their sales associates motivated because they are the only advertising medium that a pre-need can utilize which is directly linked with sales. Also, another important component of pre-need operations is the trust fund. It is considered as the heart and soul of a pre-need company because it is where the company source the money due to their planholders.Top management is responsible for the over-all management of the company. The performance of the employees is somehow a reflection of the management's ability to lead, control and organize a company. Thus, the success of the company depends on good management efforts and skills.The pre-need industry contributes to the society and economy as a whole. The responsibility that it undertakes for the society is to provide security through its products. For the economy, however, the pre-need industry quantifies its contribution through stimulation of savings/investments, employment generation and capital generation for government projects.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU06596

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

162 numb. leaves

Keywords

Insurance companies; Insurance, Business; Industry and state; Capital market; Instalment contracts; Company insurance

This document is currently not available here.

Share

COinS