Wednesday, January 28, 2009

Beleaguered Pre-Need Companies

I posted a part of an editorial cartoon I drew in relation to the financial crisis that the pre-need industry in the country is facing. The cropped illustration of the planholders (arm shows) says: "Thanks, I can now enjoy my investments." To which the industry replied that he is broke.

This is one of the saddest news to hit every planholder in the country who does not apparently know what to do with their hard-earned money or investments that might soon be watered down. I don't know if they can seek real answer from the inutile Securities and Exchange Commission (SEC) which was supposed to closely monitor the financial performance of the players in the pre-need industry.

When the news broke out about some pre-need companies closing down, they told media they were not saying they were having repayment problem but admitted they might be facing it in the near future. Same dog with different collar. This simply means that they are facing repayment problem. Blaming the global financial crisis is not also a solution to their dilemma or the planholders' dilemma.

This has nothing to do with the global financial crisis but pure investment mishandling on the part of the pre-need industry. The government should be blamed due to its policies critical to the financial health of the industry. The people would bear the brunt of this debacle in the pre-need industry and for sure the impact will go a long way affecting the future of the industry not unless the government and the players in the industry will implement measures responsive to this situation.