Pre-need sales tumble 21%

Sales of the country’s pre-need companies fell 20.8 percent in the first 10 months of the year, mirroring the still weakened confidence of investors in the battered pre-need industry.

Data from the Securities and Exchange Commission’s Non-Traditional Securities Department showed pre-need sales reached P12.71 billion from January to October this year, from P16.05 billion a year ago.

The number of plans sold, however, rose 7.07 percent to 204,227 from 190,746.

Sales of pension plans, accounting for the bulk of total sales, dropped 35.48 percent to P6.12 billion from P9.48 billion as the number of plans sold declined 32 percent.

Education plans suffered the biggest drop in sales from P3.3 billion to P1.59 billion. A total of 9,290 units were sold, down 56.2 percent from the year earlier level of 21,698.

Sales of life plans, on the other hand grew 53.09 percent to P5 billion from P3.26 billion as the number of units sold increased 60.85 percent.

Initial collections, the first payment made by the planholder upon purchase of a plan depending on his or her mode of payment, amounted to P1.27 billion or 26 percent lower than the previous year’s P1.73 billion.

In October alone, pre-need sales hit P989.775 million, a decrease of 21 percent from sales in October 2007.

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.