Cebu pre-need firm offers cash advances to clients
By Minerva BC Newman
Cebu City (7 December) -- A pre-need firm in Cebu decided to offer cash advances to its clients to give its open-ended educational plan holders "peace of mind."
Pet Plans chairman, Rev. Edmundo Martinez, in a statement said, "they want to give their plan holders, a fair return of investments and security of their benefits today, rather than upon maturity of their plan or at a later date." Martinez added, the board of Pet Plans is fully committed to meet the challenges of the pre-need industry.
Erwin Llanera of Pet Plan Cebu said, 20 of their 121 plan holders in Cebu City have already availed of the cash advance benefits. Pet Plans officials wanted to set an example of a responsible solution that gives advanced cash benefits to its open-ended education plan holders.
Lorenzo Ocampo, Pet Plans president and chief executive said, Pet Plans is the first company that stopped selling open-ended education plans after the geregulation of tuition in 1992. The decision limited the firm's exposure to open-ended plans to only four percent and, at the same time, helped secure the viability of its fixed value plans, Ocampo added.
The Securities and Exchange Commission already prohibited another pre-need firm College Assurance Plan (CAP) from selling plans after mounting complaints by its plan holders who had either received bad checks or did not get benefits at all. (PIA-Cebu) [top]