Professional Documents
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Investments in Memorial Lots and Life Plans: Polytechnic University of The Philippines
Investments in Memorial Lots and Life Plans: Polytechnic University of The Philippines
In Partial Fulfillment
Business Logic
by
2019
INTRODUCTION
Living in a country, Philippines, filled with beliefs and still find talking about death as
being morbid and unacceptable, pre-need memorial plan industries will most likely fail. But
despite how much we tried to run away with it, unfortunately death is one of the most inevitable
According to the Securities and Regulation Code of 2000, pre-need plans are contracts
which provide for the performance of future services or payment of future monetary
considerations at the tie of actual needs. And mostly people obtain a plan for the three major
reasons: to setup funds for their retirement (pension plan), to provide for the children’s college
funding (educational plan), and last is to have a worry-free funeral service upon death of a loved
one (memorial of life plans). These plans particularly appeal to Filipino individuals and families
mainly because they help prepare and mobilize savings early on, and thus, make it easier for
them to cope with the spiraling cost of living. Since the establishment of the first pre-need plans
in the Philippines in 1966, pre-need has grown into a multi-billion Peso industry and has
contributed significantly to the growth of Philippine’s financial sector. But despite all of these,
this industry is not safe from downfall. A number of factors have contributed to the deterioration
of the pre-need industry. But these pre-need plans are significantly safer now because of tighter
regulations and closer monitoring by the government that has been transferred from SEC to the
IC. Benefits from these plans have been safeguarded because of the signed law commonly
engage in these kind of plans for it will benefit not just the plan holders themselves but most
especially their loved ones who are the main reason why they are working restlessly for them to
have a better future. Living in these world where price increases almost every second, a best plan
to safeguard your money as well as your future is a must. These life plans are one of those must
have plan for it enables the plan holder to prepay future expected memorial needs at a cost that is
PROBLEMS
3. In availing one, will you take into account these following factors? why?
- Price
- Flexibility of payments
- Benefits or Package
2. To be able to know the reasons what made them avail life insurances/plans.
3. To be able to identify the factors that they consider before buying or investing in life
NULL HYPOTHESIS
It is not advisable for the people to invest in Memorial Lot and Life Plan Insurances.
DISCUSSION
The study sought to prove that it is really advisable for the people to invest in memorial
lots and life plans. In order to give verified data, the researcher interviewed an insurance agent
who is knowledgeable enough to give a statement or answers the questions with regards to the
topic and for the researcher to not be biased, she also had an interview to a life plan holder to be
their answers were the same, for future purposes but when the researcher asked the next question
their families became their common denominator. The first interviewee is a life plan holder and
as a young professional she said that she always manages her salary and put aside some amount
intended for her life plan and other insurances and when asked what made her avail that plans
despite her tight budget, she answered futuristically, she said that no one knows one’s lifespan
and accidents can happen in just a blink of an eye therefore having pre-need plans can secure her
loved ones. Also having a knowledge in some investments, because of the fact that she is
working as bank personnel, she replied that now is the best time to invest in such plans most
especially in memorial lot plans for land is one of the assets that appreciates overtime. Price
ranges of memorial lots today will be incomparable to its will-be priced after a year or so.
Another interviewee is a St. Peter Life’s insurance agent, a mother of three, said that as an
insurance agent she must also be an insurance holder, therefore she became one out of her
work’s policy only but as the time goes by she realized that as a mother, life plans are a must for
her to be not a burden to her will-be left family when something happens. She also clarified that
she’s not answering the researcher’s questions in a biased manner, she answered it not just an
insurance agent who needs to uplift her work but as a plan holder herself. When the researcher
further elaborated the questions and when asked about the factors that they consider in investing
in such life plans considering the tight competition of these industries they gave the researchers
some factors that they did considered before investing. The very first factor they considered is
the price. As an average earners, according to themselves, the price should be budget-friendly
but the benefits or the package of their plans must be worth it and reasonable enough which
brought the researcher to the other factor, the benefits included in the life plans. After
considering the price, they also mentioned the mode of payment. Some companies offer an
installment basis life plans whether annually, semi-annually, quarterly and even monthly for
those people who cannot pay in lump sum. Also as what the insurance agent interviewee
answered, the company where she is working provides a way wherein the agents themselves
collect the payment from the insurance holders without additional payment which makes it as
one of their business tactics because this can save their clients’ time and money. And the last
factor that they provided the researcher is the stability of the company where they are investing.
Before engaging in such life plans they said that they did some background checking about the
company whether it is lawfully registered, other customers’ reviews and the current financial
Investing in memorial lots and life plans seem not a necessity from most perspectives, yet
ANALYSIS
Philippines, being ranked as one of the not-so safe country because of the President’s
scheme, many people died because of the all-around drug buy bust operation also known as
‘Oplan Tokhang’, resulting to many innocents’ lives being taken away. Some of these have
families already and therefore leaving their children behind without any aid will cause them to
suffer more plus the fact that their burial will also add to their distress. As the crime rate rapidly
rises and may look like as if deaths are common to the country, the right and proper life plans are
needed by each and every one of us to become ready whatever misfortunes may occur and to
lessen the burden it may bring to those family members that will be left behind.
Investing in life plans is one of the best investments one needs to have. It may seem like
an expense today but surely it can guarantee the plan holders’ families a better future. But before
engaging in such plans many factors should be considered for it to become a worth it investments
and meet the expectations of the plan holders on why they decided to invest in such. The first to
consider is its price, whether the whole deal is worth investing. Next is the flexibility of
payments. Since most of the workers are paid twice a month or every fifteen days or most
commonly known as “kinsenas - katapusan” and sometimes monthly, it is better if the life plans
that they offer can be paid in installment basis and much better if it is in compliance with their
compensation date. Lastly, it is a must for every investor especially the starting investors to
conduct a background check about the insurance companies where they will invest or plan to
invest.
Considering the not-enough salary of most workers, investing or buying life plans is a
difficult decision that should be well thought. Even after knowing the advantages it may bring
and securing the future when one breathes their last breath, some still do not have one because
their economic status/income does not permit them to do so as much as they want to, but proper
management of their resources is the only key because if not today when will you decide to save
for your future? today is the right time. Although no one wants to experience it but being rational
enough it may soon come pass all of us, and it is better to be prepared and ready than to be sorry.
CONCLUSION
In conclusion, through the research conducted, the researcher was able to drawn the
following conclusions:
First, the very reason why investing in life plans are advisable is because in this fast
paced world, no one knows what lies ahead or even tomorrow therefore being prepared or having
a back-up plan is the only key for our loved ones to secure a better future especially when it
comes to finances.
Second, investing properly will always results to a better future. As the time goes by,
prices increase rapidly making it harder for the poor people to avail something even if they need
it. Therefore, while the price is still not so high, it is the right time to avail such life plans.
Lastly, considering the factors and always putting in mind the advantages of planning for
the future will put our mind at peace because we know that when the inevitable happens, we will
no longer be a burden to them because all things are prepared ahead of it, so they do not need to
people to invest in memorial lots and life plans. For it is clearly seen that when one invests in
these plans it will never backfired them. As what the US former president Benjamin Franklin
said “In this world, nothing can be said to be certain, except death and taxes.” therefore investing
in life plans will always result to a better future and will never be put us in vain. In short
investments today guarantee us and those we left behind a slightly better future compared to
REFERENCES
Ropchan, J. (2019) Why do you need to invest in memorial plan? Retrieved from
www.funerallink.com.ph
Tabanag, A. (2019) The Importance of Investing in Memorial Lots in the Philippines retrieved
from www.negosentro.com.ph
Biolena, R. (2016) Memorial plan do’s and don’ts retrieved from www.rappler.com
Biolena, R. (2016) Memorial plans: Preparing for future today retrieved from www.rappler.com
Garcia, L. (2016) Preparation and planning are ways to a better future retrieved from
www.businessmirror.com.ph
Caliwan, C. (2019) Total crime volume down in 2019: PNP Retrieved from www.pna.gov.ph