From Manila Times - pre need companies diasappearing?
We are currently studying the addition of memorial plans to our memorialization business. We noted though, while enshrined in the law, the reason why pre need plans company fail. Chapter 3 of the said pre need code, prescribes 5% contribution to the trust fund on the first year, 15% on the second year, and 70% thereafter. While they look big on the 3rd to fifth year, the total trust fund contribution is only 46% of the total obligation. Considering that yields on debt instruments range only from 0.5% to max of 3%, completing the 54% deficiency would be a tall order
