Frugal Living

Salve at Money Smarts has made a couple of compelling entries about what to do when your pre-need company fails. Amidst numerous collapse of pre-need companies not only in the country, these kind of failure makes decision making regarding educational, health plans and the like more complicated.

So what should you do when your pre-need company fail?

1. As soon as the closure of the pre-need company has been made kown to the public, make sure you double check with the Securities and Exchange Commission for official announcements regarding your pre-need company.

2. Ensure your documents are in order. Locate all original documents and obtain copies of plan contract, certificate of full payment or receipts of payments you have made so far.

3. As per the advise of Money Smarts, planholders of Legacy Consolidated Plans, Inc., Scholarship Plan Phils. Inc., and All Asia Plans Corp., must file a sworn complaint on or before March 31, 2009 . This will increase your chances of getting back your money, so do this as soon as possible. I have yet to confirm if there are class action suit against these companies as of yet…

4. 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.

5. 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.

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Salve has a few parting notice to the plan holders of Pryce Plans and Collge Assurance Plans. In the case of Pryce Plans, the SEC said it has not been closed and should still be servicing clients. However, it is no longer allowed to sell new pre-need plans. Those who need assistance in having their plans serviced by the company may course their requests through the following address:

15th Floor Pryce Center
1179 Chino Roces Ave.,
Cor Bagtikan, Makati City

Or get in touch with Jenette Ramos (584-6058) of the SEC.

On the College Assurance Plan (CAP) closure, the company is currently under rehabilitation and the courts have appointed a receiver for the firm. As cautioned by Salve, these may not mean a complete refund of your policies as described in the original contract, but there is a chance you will get the money you have paid for so far.