Saturday, September 23, 2006 Pre-need firm develops new products for lower market
To encourage more people to save for their future needs, especially for the education of their children, pre-need company Philam Plans has developed new products that are affordable to the lower-end market.
Jack Howell, company president and chief executive officer, said this move is part of the company’s repositioning program to capture the segment of the market that is composed of people who can afford to set aside only a small amount for savings.
“Some pre-need and insurance companies increase their premiums to get more investments from the market. Philam Plans’ way is different,” he told a press conference at the Casino Español de Cebu last Wednesday.
Aside from meeting its objective of expanding its planholder-base, Philam Plans is able to help more Filipinos save for their future, Howell said.
Philam Plans new products are the Futurefund 100 and the Futurefund 500. For a premium of P1,200 a month for five years, subscribers of Futurefund 100 will get a return of P100,000 after a 15-year maturity.
Under Futurefund 500, subscribers pay a monthly premium of P2,400 for five years and get a return of P500,000 after 15 years.
Rolando Gaerlan, Philam Plans senior vice president, said the company has based the creation of its new products on the success of retailing or the “sachet marketing” of products and services in the country.
Earlier, Ayala Corp. president and chief executive officer Jaime Augusto Zobel de Ayala urged companies to serve the needs of a broader base of consumers or the low-income individuals, who represent an “enormous potential revenue pool.”
Gaerlan said the company saw a “very positive” response from the market for its new products, which were launched last month.
Philam Plans is a member of global financial conglomerate American International group (AIG). (JBN)
