MANILA, Philippines - The Philippine Prudential Life Insurance Co., Inc. has unveiled its latest product – the Smart College Protector Plan.
This educational plan is designed as a savings tool to provide a certain amount of cash when a child reaches the age of 17. Children up to age 10 are qualified to avail of the plan.
Depending on the plan they will choose, kids can get as much as P100,000 each year for five years, and this can even reach up to P1 million in case of a fatal injury.
Premiums are payable for a period of only five or seven short years.
Aside from biological parents and kin, non-biological guardians can also be payors as long as they are between ages 18 and 65. In the event a payor dies during the paying period, premium payments will be waived; and the child will receive an annual stipend of P50,000 for pre-college education until he or she reaches the age of 16.
Philippine Prudential Life president and chief executive officer Gregorio Daniel Mercado expressed confidence that their new product would attract many potential customers, especially with the recent passage of Republic Act 10001.
This new law lowers taxes on life insurance premiums to two percent from the previous five percent, and allows a one-time graduated documentary stamp tax (DST) imposed on life insurance policies.
It covers policies sold after the new law took effect, and even those sold prior to the effectivity of the law, but with premiums yet to be paid. President Arroyo signed RA 10001 last February.
“As a result of this new law, definitely there will be a rise in sales because some who couldn’t afford life insurance plans will now be able to afford them,” Mercado said.
For this year alone, Philippine Prudential is embarking on a massive campaign to reach more sectors of society.
Aside from new products, the company is also expanding its retail operations and would soon open more distribution channels across the country.
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