Sales of the country’s pre-need companies continued their downward trend in the first eight months of the year, falling 21.09 percent as consumers scrimp on spending in view of a weakening economy.
According to data from the Securities and Exchange Commission’s Non-Traditional Securities Department, total sales dropped to P10.6 billion from P13.44 billion a year earlier even as the number of plans sold rose by 6.26 percent.
Sales of pension plans, accounting for bulk of total sales, declined 37 percent to P5.21 billion from P8.26 billion in the same period a year ago as the number of units sold dropped by 31.48 percent.
Education plans suffered the biggest drop in sales from P1.42 billion to P2.56 billion. A total of 8,254 units were sold, 52.08 percent lower than the previous year’s 17,226 units.
Life plans cornered the biggest share of plans sold, totaling 109, 438 or an increase of 60.95 percent. In terms of contract value, sales grew 52.69 percent to P3.97 billion from P2.6 billion.
Initial collections, the first payment made by the planholder upon purchase of a plan depending on his or her mode of payment, amounted to P1.044 billion or 29.7 percent lower than the year earlier figure of P1.48 billion.
In August alone, pre-need sales reached P1.38 billion, down 4.41 percent from P1.44 billion last year.
Pre-need plans are contracts which provide for the performance of future services or the payment of future monetary considerations at the time of actual need for which planholders pay in cash or installment at stated prices, with or without interest or insurance coverage and includes life, pension, education and interment. — Zinnia dela Peña