PHILAMLIFE TO RELEASE P179.5 MILLION OF SCHOLAR EDUCATION BENEFITS FOR SECOND SEMESTER

The country’s No. 1 life insurance company, Philamlife, announced today that it will release the second tranche of education benefits for Philamlife scholars starting October 1, 2005 in all its branches nationwide. A total of P179.5 million in the form of bank checks, auto-credit transfers to Philam Bank savings accounts, and Banco de Oro cash cards are ready for disbursement to the parents of 29,017 Philamlife scholars by the first week of October

These benefits are intended for the tuition and other enrollment expenses of the scholars covered by Philamlife’s various education insurance products. The timely release of these benefits will allow parents to enroll their children for the second semester of school year 2005-06.

Since Philamlife launched its first education insurance product in December 1985, it has continuously enhanced its products to fulfill the needs of the changing market. Scholar Plus was launched in 1990 and featured a short 5-year paying period, Scholar Gold followed in 1993 with improved features and benefits, and International Scholar, the company’s first dollar-denominated education product, was launched in 2001. Its newest education products are Scholar Gold Prime and Scholar Gold Advantage, which provide more comprehensive benefits.

Philamlife only offers products that are “fixed-value” in nature, unlike many pre-need educational products that are classified as “traditional or open-ended.” Open-ended plans promise to pay for a child’s education when he steps into college, regardless of how much the tuition fees are at that time. Since tuition fees have risen significantly over the years due to deregulation, many companies selling open-ended plans have seen their trust funds depleted. A number of companies selling these plans have been in the spotlight recently, struggling to meet their commitments to their plan holders.

Fixed-value education products, on the other hand, peg the promised payment to a specific pre-computed amount, and are thus more easily managed. A company selling fixed-value plans knows exactly how much its obligations will be at a certain point in time, and can thus manage its trust funds more effectively.

Philamlife has consistently and faithfully paid-out education benefits to its more than a hundred thousand scholars through the years. Over the last 3 years (2003-2005), Philamlife has paid-out a total of P836.3 million in Scholar education benefits. The company started paying-out education benefits to its Scholars as far back as May 1992.

Philamlife is the leading and most diversified life insurance company in the country. Its comprehensive range of life insurance products answers the various financial needs of its customers at different points in their life, e.g., education, protection, health and retirement. Philamlife insurance policies help Filipino families enjoy a secure and prosperous financial future.

Scholar recipients will be notified through the local branch where they can claim their checks. Philamlife Agents can also assist policy owners in getting these benefits.

For any other questions or inquiries, contact Philam Call Center at (02) 528-2000.

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