Saturday, January 29, 2011

Philippine Prudential Life Scam or Not?

Starting more than a year ago, clients of Philippine Prudential Life began to worry about the negative write-ups regarding the company’s marketing strategy.  Prior to that, some of the largest and most respected pre-need companies in the country had been unable to meet their contractual obligations to long-standing clients.  This resulted in many pre-need planholders to file cases against these companies.  Years later, these planholders continue to live in uncertainty and are still wondering if their pre-need companies would ever pay their obligations.

With much of the general public still confusing pre-need with insurance, it is no wonder then that many people continue to be hesitant and more cautious in buying policies from legitimate and reputable insurance companies.  If pre-need firms, especially those that were owned or run by leading insurance companies, can collapse in a blink of an eye, how can you trust newer and less-known insurance companies to guarantee the protection of their policyholders?

Such is the case of Philippine Prudential Life Insurance Company or PPLIC.  It certainly does not help matters that it has a similar name with a pre-need company called Prudential Life Plans, which stopped operating and selling pre-need plans over a year ago.  This has made things more difficult for PPLIC to prove its credibility in the face of spreading news about Philippine Prudential Life scam.

I conducted my own investigation, since the negative write-ups did not satisfy or make sense to me, and discovered some little-known truths about PPLIC.  Despite the various speculations and negative write-ups about it, this company continues to stand strong and respectable.  Just to be clear, PPLIC is not Prudential Life Plans.  The latter happens to be a pre-need company, an entirely different type of business under a different set of owners, which carried the name Prudential in its company’s name.


Philippine Prudential Life Insurance is a Filipino-owned company founded in 1963 with a long history of providing reputable service to its members.  It currently services more than 1.5 million policyholders, including their families.  Despite the collapse and losses of older and more well-known insurance companies, PPLIC continues to serve and live through the challenges of today’s harsh economy.


PPLIC is one of the pioneers of Mortgage Redemption Insurance, or later known as Credit Life Insurance, a policy that is designed to pay off the borrower’s debt in case of the borrower’s death.  PPLIC is also among the few life insurance companies which offer group life insurance plans.  Group life insurance plans cover labor unions, business or company employees, members of an association, etc.  PPLIC also offers LABB (or Life Accident and Dismemberment Burial Benefit) designed for low-paid Filipino workers and employees.  5 in Juan Plan, a compilation of five plans, includes life insurance, LABB, accidental medical reimbursement, daily hospitalization benefits and dental services.  PPLIC also offers educational, health, and individual plans.

Awards and Recognitions

PPLIC carries the Superbrands status, a globally recognized organization that pays tribute to the leaders in branding all over the world.  Superbrands recognition goes beyond branding.  It identifies manufacturers, companies, and brands that focus on the goodwill of the people, and are particularly chosen and preferred by the people.


Aside from offering life insurance and other product and services, PPLIC goes beyond business.  The company is one of the current supporters of Kariton Klasrum, a project by the CNN Hero of 2009, Efren Peñaflorida.  PPLIC also supports Gawad Kalinga, a Philippine foundation aimed at easing poverty and promoting human dignity and nation building.

Every insurance company faces the painful possibility of failure. PPLIC understands where the issues are coming from, it still stands to serve its policyholders to the best of its ability.

The decision to invest in your future is entirely up to you.  Whether you want to manage your future with your own hands or let an insurance company take care of your investments, just always make sure that you have taken proactive steps to ensure that the future holds great promise for you and your family.

The Philippine Prudential Life scam reviews and write-ups are just another symptom of prejudice against insurance and financial services companies.