PRE-NEED INSURANCE

Pre-need insurance

Coverage that guarantees the fulfillment of future obligations, payment of money, or provision of other benefits when the policy's maturity date approaches.

Pre-need educational plans

Contracts that provide future services, money, or other advantages for educational purposes, helping parents save for their child's education.

Education endowment plans

Insurance policies that combine coverage with savings and investment components, paying out a lump sum when the child is ready for college or university.

Child education plans

Plans that combine life insurance coverage with systematic savings to secure a child's educational future.

Tuition refund insurance

Insurance policy that provides a refund of tuition fees if a student is unable to complete a semester or academic year due to unforeseen circumstances.

Study abroad insurance

Insurance policy that provides coverage for students studying abroad, including medical expenses, emergency medical evacuation, and repatriation of remains.

Educational institution insurance

Insurance policy that covers colleges, universities, and private K-12 schools, including property, auto, liability, and emerging risks like cybercrime.

General Liability Primary and Excess Coverage (CGL and GLX)

Insurance policies that cover additional insureds, alcohol-related claims, athletics, boarding schools, fire, security guards, sexual misconduct, allied health professionals, and counselors in campus infirmary.

Importance of educational plan

Investing in an educational plan allows parents to set aside money for their child's education, avoid high-interest loans, choose the best education, and break barriers to access education.

Burial and memorial plan

Pre-need plan that covers burial and funeral costs, ensuring a planned service and reducing debt for the family.

Burial and memorial planning insurance

Insurance that provides financial assistance for funeral arrangements and related services, alleviating the financial burden on loved ones.

Coverage of burial and memorial plan

Typical inclusions of a burial plan, such as casket, transportation, funeral-related services, memorial lot, burial plot, urn, and reception.

Importance of burial and memorial plan

Burial insurance covers all funeral expenses, eases the financial burden, provides peace of mind, allows for customization, and covers other expenses like medical bills and outstanding debts.

Personal property insurance

Insurance that covers personal belongings from risks like theft, fire, vandalism, or natural disasters.

What does personal property insurance cover?

Personal property insurance covers furniture, clothing, electronics, and other personal belongings regardless of their location.

Personal Property Insurance

Insurance coverage that protects personal belongings and possessions in a home, apartment, or rental property.

Covered Risk

Events or incidents that are included in the insurance policy and can result in damage or loss of personal property.

Deductible

The amount that the policyholder must pay out of pocket for a loss before the insurance company covers the remaining expenses.

Fire and Smoke Damage

Damage caused by fire or smoke to personal property.

Theft and Vandalism

Loss or damage to personal property due to theft or intentional destruction.

Windstorms

Damage caused by strong winds, such as hurricanes or tornadoes.

Lightning and Electrical Damage

Damage caused by lightning strikes or electrical malfunctions.

Water Damage

Damage caused by burst pipes or a leaking roof.

Falling Objects

Damage caused by objects falling onto personal property.

Explosion

Damage caused by an explosion.

Riot or Civil Commotion

Damage caused by riots or civil disturbances.

Vehicle or Aircraft Damage

Damage caused by vehicles or aircraft.

Exclusions

Items or circumstances that are not covered by personal property insurance, such as pets, autos, losses caused by flooding, and certain valuable items like jewelry, weapons, cameras, and laptops.

Importance of Personal Property Insurance

The significance of having personal property insurance to protect valuable assets and provide peace of mind.

Health Maintenance Organization (HMO)

A managed care health insurance plan that offers comprehensive healthcare coverage through a network of healthcare providers.

Managed Care

A healthcare delivery system that aims to provide cost-effective and comprehensive healthcare coverage.

HMO Coverage

The medical services covered by an HMO, including hospitalization, emergency services, laboratory services, and prescription drugs.

HMO Network

A network of healthcare providers that HMO members can access for medical care and assistance.

HMO Membership with PhilHealth

The ability to use an HMO plan alongside a PhilHealth plan for partial coverage of medical bills.

Advantages of HMO

The cost savings and quality of care provided by HMO plans, including lower premiums, cheap co-pays, and no need for referrals for specialty procedures.

Choosing an HMO Provider

Factors to consider when selecting an HMO provider, such as monthly premiums, out-of-pocket costs, choice of healthcare providers, and the health of individuals to be covered.

Pre-Need Insurance

Contracts or agreements that provide future services, monetary considerations, or other benefits at the time of need or agreed maturity date.

Pre-Need Company

A corporation or entity authorized to sell pre-need plans, including schools, memorial chapels, banks, and nonbank financial institutions.

Pre-Need vs

The differences between pre-need plans and traditional insurance, including the predetermined period, uncertain time, and fixed amount of liability in pre-need plans.

Registration of Pre-Need Plans

The process of submitting a registration statement, obtaining approval for contract forms and advertising materials, and providing information brochures to prospective plan holders.

Cancellation of Registration

The circumstances under which the registration of a pre-need plan may be canceled, such as solvency or trust fund deficiencies, paid-up capital impairment, or violations of the code.

Licensing of Sales Counselors

The qualifications, training, and examination requirements for individuals to become licensed sales counselors in the pre-need industry.

Grounds for Denial, Suspension, Revocation

The reasons for denying, suspending, or revoking the license of a sales counselor, including misrepresentation, fraud, or termination from another pre-need company.

Licensing of Agents

The requirements for registering as a general agent, including being a registered corporation or partnership, possessing the same qualifications as sales counselors, and being authorized to receive notices and legal processes for the pre-need company.

Defaulting on Pre-Need Plan Payments

The consequences of failing to make premium payments for a pre-need plan.

Grace period

A 60-day period after default of the 1st installment.

Reinstatement Period

A period of not less than 2 years from the end of the grace period.

Notice of cancellation

A notice given 30 days after the lapse of the grace period and 30 days before the end of the reinstatement period, required from the plan holder.

Offer to terminate

An offer by the pre-need company to terminate the pre-need plan for consideration exceeding the termination value provided in the plan contract.

Claims Settlement Period for Scheduled benefit plans

Immediate settlement; after 15 days, interest (12%) will be demandable.

Claims Settlement Period for Contingent benefit plans

30 days after submission of all necessary documents.

Recovery of Investment

Legal action against the pre-need company in case of no fraud, and legal action against officers or controlling owners in case of fraud or illegality.

IC determination of claim denial

The Insurance Commission determines whether the payment of the claim of the plan holder has been unreasonably denied or withheld.

Damages for denied claims

If the claim is found to have been denied or withheld, the pre-need company shall be liable to pay damages, consisting of actual damages, attorney's fees, and legal interest.

Other Claims Settlement

Includes knowingly misrepresenting facts, failing to acknowledge communications, failing to investigate claims promptly, failing to provide fair settlement, and compelling plan holders to institute suits.

Trust Fund

A fund established to ensure the delivery of guaranteed benefits and services provided under a pre-need plan contract.

Cost of Pre-Need Insurance for Educational Plans

Steps to determine the cost of pre-need insurance for educational plans, including choosing a university wisely, computing the target amount for the tuition fund, and choosing a long-term investment.

Cost of Pre-Need Insurance for Burial and Memorial Plans

Factors that affect the cost of burial and memorial plans, including location, service provider, package, pre-arrangement or at-need, and inflation.

Personal Property Insurance

Insurance coverage for personal property such as furniture, clothing, and electronics.

Factors affecting home and property insurance premiums

Construction, construction costs, location, age and condition of home or property, and credit history.

Insurance scores

Predict the average claim behavior for a group of insureds with the same credit history.

Deductible amount

The amount that needs to be paid out of pocket before insurance coverage kicks in.

Claims history

The prior claim history of a home, which can affect the ability to obtain homeowners insurance and the price of the home when selling.

Additional coverages

Additional coverage options that can be added to a home insurance policy, such as coverage for credit or ATM cards.

Health Maintenance Organization (HMO)

A healthcare delivery system that allows individuals to access a wide range of medical services at a lower cost, typically provided by employers.

Payment options for HMO

Different payment options for HMO plans, including monthly, quarterly, semi-annual, and annual payments.

Payment of fixed premiums and cost-sharing provisions

HMO members typically pay a fixed prepaid fee for medical care, but may also have cost-sharing provisions such as deductibles, copayments, and coinsurance.

Emphasis on controlling costs

HMOs use various methods to control costs, including modified fee-for-service, capitation fees, purchasing cooperatives, and emphasis on preventive care.

Pre-need plans

Plans that fall under two general classifications - Contingent Benefit Plans and Scheduled Benefit Plans.

Fixed Value Plans

Pre-need plans that offer a defined amount of compensation in the future, with the planholder responsible for covering increased costs due to inflation.

Actual Cost Plans or Traditional Plans

Pre-need plans where benefits are guaranteed regardless of the plan's cost at the time of benefit consumption.

Parties to a pre-need plan

The pre-need company, the planholder, and the beneficiary.

Sales Counselor

A natural person who sells or offers to sell pre-need plans under the authority of the pre-need company.

Classification of pre-need plans

Life or memorial plans, pension plans, and educational plans.

Pre-need insurance in the Philippines

A uniquely Filipino product tailored to meet specific needs, with benefits available for a limited period or in certain situations.

Open-ended plans

Pre-need plans that guarantee tuition payments regardless of the cost of schooling.

Pre-need plans

Various types of plans offered by pre-need insurance companies, including educational plans, memorial plans, and pension plans.

Regulatory Oversight

The Insurance Commission (IC) oversees the pre-need industry in the Philippines and ensures compliance with the Pre-Need Code.

Trust Fund Requirement

Pre-need insurance companies are required to establish and maintain trust funds to fulfill their obligations to planholders.

Consumer Protections

Provisions in the Pre-Need Code that protect consumers, such as disclosure requirements and mandatory disclosures in contracts.

Payment Options

Different options for planholders to make regular contributions to fund their pre-need plans.

Plan Benefits

The specific benefits provided by pre-need plans, depending on the type of plan and the terms and conditions set by the pre-need company.