Making Better Lives...

(1)

(2)

THE PROPOSED SOLUTION

MBLIFE

INSURANCE EXCHANGE

PROGRAM

(3)

(4)

THE

EDUCATION AND PENSION

TRUST FUND

To be managed by THE SAME BANKS +

CORPORATE ASSETS

HOW THE PROGRAM WORKS

NOTE:

•The existing BANKS will continue

to hold and invest the funds thru an investment management agreement (IMA)

•The banks will continue to report to the Insurance Commission the monthly balances, earnings and payments

(5)

HOW THE PROGRAM WORKS

ON TRANSFER DATE

Prudentialife will transfer the trust fund and corporate assets to MB Life (TRANSFER VALUE)

CORPORATE ASSETS

“FUND B”

+

TRUST FUND

(6)

 The Trust Fund and the Corporate Assets will be allocated to all in force pension and education planholders

 Each planholder will have an allocation in the Trust Fund and the Corporate Assets

• This allocation will be the insured’s Insurance Reserve

Account (I.R.A.)

• Each insured shall have two I.R.A.s

1. I.R.A A for TRUST FUND

2. I.R.A B for CORPORATE ASSETS

(7)

(8)

LIVING BENEFIT



IRA A is guaranteed to grow at 5% every year,

for 10 years



IRA B is guaranteed to grow at 2.5% every year,

for 10 years

(9)



The following illustration of the insured’s

LIVING BENEFIT

is based on the formula in

the Rehab Plan submitted by Prudentialife;

still subject to review and approval by the

Insurance Commission



The values are based on September 30,

2011 data and will be adjusted on

TRANSFER DATE

(10)

LIVING BENEFIT

PENSION PLANS

PLAN STATUS:

1.

Fully paid, not yet matured

2.

Availing

3.

Matured, not yet availed

4.

Actively Paying

(11)

LIVING BENEFIT

–

Fund Builder

(Fully Paid, not yet matured)

UNDER PRE-NEED CONTRACT

UNDER INSURANCE EXCHANGE PROGRAM

GCP MATURITY LIQUIDATION

TOTAL

BEGINNING TOTAL EXPECTED

DATE VALUE IRA A + IRA B

LIVING BENEFIT A + B 22,000 2012 28,205 44,849 79,782 22,000 2017 17,750 26,239 42,946 22,000 2022 11,130 14,455 19,621

(12)

LIVING BENEFIT

–

Wealth Builder

(Availing)

UNDER INSURANCE EXCHANGE PROGRAM GCP MATURITY AMOUNT OF LIQUIDATION TOTAL BEGINNING TOTAL EXPECTED DATE BENEFIT

AVAILED VALUE IRA A + IRA B

LIVING BENEFIT A + B 162,500 2019 45,000 42,002 69,406 124,554 162,500 2020 30,000 39,269 64,542 114,982

(13)

LIVING BENEFIT

–

Fund Builder

(Matured not yet availed)

TOTAL

(14)

LIVING BENEFIT

–WEALTH BUILDER

(Actively Paying)

UNDER INSURANCE EXCHANGE PROGRAM

GCP EFFECTIVE TOTAL LIQUIDATION

TOTAL BEGINNING TOTAL EXPECTED DATE AMOUNT

PAID VALUE IRA A + IRA B

LIVING BENEFIT A + B 185,550 2007 148,440 29,583 47,300 83,275 185,550 2008 148,440 27,829 44,179 77,097

(15)

LIVING BENEFIT

–

Premium Fund Builder

(Waiting for Money Back Benefit)

UNDER INSURANCE EXCHANGE PROGRAM GCP AVAILMENT AMOUNT OF LIQUIDATION TOTAL BEGINNING TOTAL EXPECTED DATE BENEFIT AVAILED VALUE IRA A + IRA B LIVING BENEFIT A + B 84,900 2019 100,000 14,923 21,206 36,235 84,900 2020 100,000 14,634 20,692 35,164 84,900 2021 100,000 13,675 18,984 31,604

(16)

LIVING BENEFIT

EDUCATION PLANS

PLAN STATUS:

1.

Fully paid, not yet matured

2.

Availing

3.

Matured, not yet availed

(17)

LIVING BENEFIT

– HERITAGE/Value Plus

TOTAL

BEGINNING TOTAL EXPECTED

(18)

LIVING BENEFIT

– HERITAGE /Value Plus

(Availing)

UNDER INSURANCE EXCHANGE PROGRAM

GCP MATURITY BENEFIT LIQUIDATION

TOTAL BEGINNING

TOTAL EXPECTED

DATE AVAILED VALUE IRA A + IRA B

LIVING BENEFIT A + B 45,600 2009 95,712 11,092 24,643 39,290 43,100 2010 100,000 14,992 36,535 59,193 135,300 2011 94,614 24,371 65,128 106,093

(19)

LIVING BENEFIT

– HERITAGE /Value Plus

(Matured but not yet availed)

TOTAL

(20)

LIVING BENEFIT

– HERITAGE/Value Plus

(Waiting for Money Back Benefit)

UNDER INSURANCE EXCHANGE PROGRAM

GCP AVAILMENT BENEFIT LIQUIDATION

DATE AVAILED VALUE

IRA A + IRA B LIVING BENEFIT A + B 19,967 2011 161,797 4,548 4,692 6,133 19,967 2012 132,751 4,301 3,938 4,693

(21)

LIVING BENEFITS

(22)

LIVING BENEFIT

– OMNI

TOTAL

BEGINNING TOTAL EXPECTED

(23)

LIVING BENEFIT

– OMNI

(Availing)

UNDER INSURANCE EXCHANGE PROGRAM

GCP MATURITY BENEFIT LIQUIDATION

DATE AVAILED VALUE IRA A + IRA B

LIVING BENEFIT A + B 65,060 2009 68,850 11,338 25,392 40,971 65,060 2010 42,400 13,380 31,619 51,359 42,280 2011 19,700 16,981 42,599 69,801

(24)

LIVING BENEFIT

– OMNI

(Matured but not yet availed)

UNDER PRE-NEED CONTRACT

TOTAL

LIVING BENEFIT A + B 12,185 2007 4,582 4,796 6,576

(25)

ADDITIONAL

(26)

Guarantees that should the insured pass away anytime within the ten year period, the beneficiaries will receive the pre-need benefit that was not yet availed, per schedule in the pre-need contract

PLUS

An additional payment of P20,000 from Fund B

(27)

ADDITIONAL FEATURES OF THE PROGRAM

Insured may borrow against the value of his/her IRA (Fund A)

 Up to 80% of IRA

 With free Credit Group Life Insurance,

 Low interest rate (1% per month) and minimal charges

 Simple loan requirements

 Payable in light monthly installments for 1 year

(28)

FINANCIAL ASSISTANCE PROGRAM

GCP LIQUIDATION TOTAL BEGINNING TOTAL EXPECTED LOANABLE AMOUNT

VALUE IRA A + IRA B

LIVING BENEFIT A + B (AFTER 10 YEARS) 80% OF IRA A 36,360 16,960 24,832 43,990 18,067 22,000 17,750 26,239 42,946 19,091 44,820 14,875 36,177 57,406 23,219 42,280 16,981 42,599 69,801 27,341

(29)

At anytime, the insured has the option to surrender his/her insurance coverage

 I.R.A. in Fund A will be released in installments

should the insured decide to surrender from the 1st

year and before the end of the 5th_year

 I.R.A. in Fund B will be released at the end of the 10th

year

(30)

 This presentation is based on the submitted September 30, 2011 data.

 All values will be revised based on the adjusted balances of the trust fund and corporate assets on transfer date.

 The proposal is subject to review and approval by the Insurance Commission.

(31)

Liquidation vs. Rehabilitation

All planholders (including life plan) will be affected.

108,041 life planholders will continue to enjoy benefits per contract

Low Liquidation Value for all planholders Pension and education planholders can get better values.

Liquidation Value will be released only after the long process of liquidation

Benefits will be available on Transfer Date

No immediate access to liquidation value Immediate access to the I.R.A via a convenient loan facility