The camera was no longer running yesterday at the ShopTalk set at ABS-CBN and the crew were already clearing up, but Pia Hontiveros, Alvin Tabanag, Randell Tiongson and I were still huddled together. This time, the words were less subdued and (at least for me!) we were less self-conscious (haha).

The subject that kept us engaged in a lively discussion: the pre-need industry’s irresponsible boondoggling through the years that led to its demise and what policyholders can do now.

I have been getting loads and loads of email from people I don’t know, with tones ranging from bellicose cries to resigned acceptance, asking about what to do with their pre-need policies. Let me spell out the answer to their questions in terms no one will misunderstand.

Should people still buy education plans and other pre-need products?

No.

Am I bad person for saying this because this will hurt the industry even more?

Up to you to decide! At the end of the day, consumer protection should be the paramount concern.

Any industry that sells products to individuals (retail) need the confidence of the public to grow and survive. Banks, financial services companies and pre-need firms are especially vulnerable to negative publicity. I am not saying the industry will not recover. I am not a financial prophet. But why risk it?

I’m a pre-need policyholder. What now?

There are three parts in the answer to this question.

First, how rocky is the company you bought from? Rule of thumb in any shakeup in the financial sector: if you aren’t invested in the top three biggest companies with global presence, write it off and err on the conservative side.

Second, assuming that you’re not invested in the top 3, how many years have you been paying? If you are into it one or two years for a five-year policy for example, stop paying and learn from your losses. Learn, not stress about it everyday. It’s not worth the wrinkles.

If you have a couple of months or a year or two to pay, finish paying if you have the extra cash (you don’t have to go hungry just to pay). Then build up your education fund through another financial instrument. Save more aggressively. If the company pays eventually, consider that an extra bonus.

Should I get their early payment offer?

Not a lot of people realize this: the more policyholders get this early payment offer, the more the company will benefit. You can choose to be the guy who allows the other guy to get his full payment, or the other way around.

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I was a young reporter back in the late 90s covering the financial sector for a major business newspaper and sadly, quite a lot of experts already knew the problem back then. But they didn’t want to be quoted. They didn’t want to “bring down the industry” or “piss off the regulators and industry players.”

I wonder if all those reasons are worth the pre-need policyholders’ pain now.