1.) What are pre-need plans?
14.)Where can I pay my Installment dues?
What are pre-need plans?
Pre-need plans are contracts that provide for the payment and/or performance of future services or monetary considerations at the time of actual need, payable in cash or installments by planholders at stated prices with or without interest and/or insurance coverage.
Operatively, Pre-need plans are SAVINGS and INVESTMENT programs, (and depending on the plan type, carries INSURANCE benefits) in preparation for CERTAIN FUTURE NEEDS.
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How does a pre-need plan differ from insurance?
There are three basic differences between a pre-need plan and insurance. They are as follows:
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Basically, the benefits of an insurance coverage are dependent on CONTINGENCY; meaning something has to happen, such as death, disability or dismemberment before a benefit can be availed of.
The benefits of a pre-need plan are GUARANTEED; in the amount and at the time these benefits are due. In a way, one does not need to die, get disabled or dismembered to enjoy the benefits.
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Insurance intends to serve a probable need that may arise from the occurrence of any particular event – death, disability or dismembermen.
Pre-need plans intend to serve a certain future need, such as education of children, retirement and death.
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Insurance provides cash benefits.
Pre-need plans provide services, though these are also convertible to cash.
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Why should I get a pre-need plan?
We do not know what lies ahead, but what we do know is that there are needs that will invariably come; - education of children, retirement, death.
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Education is still the passport to a better life; it is however, getting more expensive
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Filipinos are living longer. Quality of life needs not suffer upon retirement.
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We all deserve a dignified "despedida" however, the cost of Memorial Services is getting higher.
We'll be better off preparing for them while we still can.
A Pre-Need Plan is an effective instrument to prepare for the future, as it provides:
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What are the different plan types and what does Eternal Plans offer?
There are three basic types of pre-need plans: - Life, Pension and Education Plan. Eternal Plans, Inc. is one of the few pre-need companies that offer the three plan types.
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Life Plan provides funds for memorial services to ease the burden of the family in case of the untimely death of a loved one.
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Education Plan is a program that guarantees a specific amount to the planholder on the maturity date to be used for the education of the scholar.
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Pension Plan provides the planholder upon maturity with a pre-determined amount that can be used either as a retirement fund, investment capital or for leisure.
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Can a Planholder transfer or sell his/her pre-need plan to another person?
Yes. All plan types are transferable. Thus, a plan may be donated or sold to another.
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Can a life planholder have his/her life plan used by another deceased individual?
Yes, we call this “assignment”. A planholder may assign the memorial service benefit to any deceased individual subject to certain conditions, such as full payment of the plan.
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What happens to the benefits of a life plan that is not availed?
If the planholder passes away and the memorial service cannot be rendered due to fortuitous or unforeseen events or other situations beyond the control of either the family of the deceased or Eternal Plans, all guaranteed benefits accruing plus applicable and approved insurance benefits, if any, shall be paid to the beneficiaries, heirs or estate.
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What is a contestability period?
This is a one-year period commencing on the effectivity of the insurance coverage within which the insurance company has the right to contest (argue against) any insurance claim. After the one-year period any claim arising from the insurance benefits shall be deemed incontestable.
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Are planholders given a grace period, within which to pay the installment payment?
Yes. Planholders have 60 days within which to pay their plan installment. During this period the planholder enjoys all the right and privileges pertinent to the plan. If, however, the plan installment remains unpaid, after the end of the grace period the plan is considered lapsed. Still the planholder is given two (2) years to reinstate the plan.
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What right remains with a planholder of a lapsed plan?
A planholder of a lapsed plan may re-activate his/her lapsed plan through a process called "reinstatement" within a period of two (2) years from the date of lapsation. If no reinstatement happens during this period, the plan is cancelled and all payments are forfeited in favor of the company as liquidated damages.
The planholder may reinstate his/her plan through the following:
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Reinstatement by UPDATING - the planholder has to pay the arrears plus penalty interests and administrative fees. Previous payments shall be credited to the plan and the maturity date shall not be affected.
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Reinstatement by RE-DATING - the planholder shall pay only one (1) installment payment at current price plus administrative charges and the plan will be on active status. The maturity date of the plan shall be moved depending on the length of time that the plan remained on lapsed status.
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Is it safe to pay my installment payments through accredited collection agents?
Yes, it is safe to pay your installment payments through accredited / franchised agents. Eternal Plans has franchised sales associates who are authorized to collect installment payments. As a rule, a Provisional Receipt shall be issued by franchised collector to the planholder, for which a corresponding Official Receipt shall be issued upon remittance to Eternal Plans’ cashiers. The Official Receipt must be received by the planholder within 30 days from the date the Provisional Receipt was issued.
Eternal Plans has 42 branches nationwide for the immediate assistance of planholders. They can always visit the branches to pay for their installments.
Moreover, for their convenience, planholders of Eternal Plans may pay their installments at branches nationwide of the following accredited banks; Rizal Commercial Banking Corp. (RCBC), United Coconut Planters Bank (UCPB) CityState Savings Banks (CSBI) and Planters Bank.
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If I stop paying for my plan, will I receive a refund?
All plan types have "Guaranteed Cash Values", which can be released upon termination of the plan. Should a planholder desire to terminate the plan, such as when he/she wishes to stop paying, he/she can request for the cash value of the plan at the given time.
Upon release of the Guaranteed Cash Value, the contract is considered terminated.
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What guarantees do I have that the benefits stated in the contract shall be available?
A certain portion of palnholders' installments is deposited in a trust fund that is projected to be equal to the Maturity Value upon maturity date. The trust fund is independently managed by trustee banks and monitored by the Securities and Exchange Commission (SEC). Eternal Plans' trust fund is deposited with Bank of the Philippine Islands, Rizal Commercial Banking Corporation and United Coconut Planters Bank
The trust fund guarantees the projected benefits.
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