Polytechnic University of the Philippines

Sta. Rosa, Laguna

INVESTMENTS IN MEMORIAL LOTS

AND LIFE PLANS

In Partial Fulfillment

Of the Requirements for the Subject

Business Logic

by

Bea Aiziel C. Bonita

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

event in our lifetime.

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 known as the Pre-Need Code.
 A memorial plan or life plan is one of the most invested plan of the Filipinos. Many 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 substantially

lower than when availed of as needed.

PROBLEMS

1. What made you decide to be a plan/insurance holder?

2. Will you consider investing in a memorial lot and life plan?

3. In availing one, will you take into account these following factors? why?

- Price

- Flexibility of payments

- Benefits or Package

- Stability of the company

 OBJECTIVES

1. To be able to observe if it is really advisable to invest in a pre-need life/memorial plans.

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 plans

and memorial lots.

4. To be able to understand the benefits life plans/insurances offer.

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

well-informed about a plan holder’s point of view.

 When the interviewees were asked if what made them decide to became a plan holder 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 performance of the said company.

Investing in memorial lots and life plans seem not a necessity from most perspectives, yet

it is one of the most important investments one should have.

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

worry most especially in financial.

 In conclusion, the researcher rejected their null hypothesis that it is not advisable for the

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 when we do not

have this life plans.

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