Pre-need sales plummet 21% to P11.71 B in first 9 months

Total sales of the local pre-need industry continued its downward trend in September, with year-to-date sales dropping 21 percent to P11.71 billion, according to figures released by the Securities and Exchange Commission’s Non-Traditional Securities Department.

In September alone, sales dropped 18.7 percent from P1.36 billion to P1.1 billion.

The number of plans sold, however, increased 6.45 percent in the nine-month period this year to 185,148 from 173,937.

Pension plans, which accounted for majority of total sales, declined 35.44 percent from P8.88 billion to P5.73 billion as the number of units sold fell 30.94 percent.

Education plans suffered the biggest drop in sales from P2.99 billion to P1.52 billion as only 8,864 units were sold, down 54.35 percent from the previous level.

Sales of life plans, on the other hand jumped 52.15 percent to P4.45 billion from P2.92 billion as the number of units sold rose 59.64 percent to 122,623 from 76,814.

Initial collections, the first payment made by the planholder upon purchase of a plan depending on his or her mode of payment, amounted to P1.17 billion or 27.5 percent lower than the year earlier figure of P1.61 billion.

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.