Good news about CAP Educational Plan
March 6, 2009
PMT Forum member abbeytuds shared a bit of good news about CAP Educational Plan. Apparently, all is not lost in this failed pre-need firm.
She said that she went to CAP’s Makati office this week to inquire about her sister’s claims. CAP is still alive, according to her, and although there were only very few staff there, they were accommodating.
The good news is, she was offered payment for the educational Plan ECU-A that her sister fully paid (gross price: P155,560). These were the payment options given to her.
Option 1: Tuition Fee Reimbursement
- Maximum reimbursement per semester = P19,759
- Total receivable amount for 4 college years = P158,072
- Check release takes 1-2 months processing
Option 2: Plan Surrender
- Check release every 3 months = P7,778
- Total of 20 payments for 5 years
- Total Receivable amount for 5 years = P155,560
If the beneficiary of the plan is just about to enter college and the tuition is more or less P19,579.00, Option 1 is definitely the better choice. For the duration of the student’s college years, the tuition will be fully covered.
If, however, the tuition is way lower than P19,579.00 per semester, it might be better to take Option 2. Assuming that the tuition every sem (i.e., every 6 months) is P10,000.00, with Option 2, during the same 6-month period, you can get a total of P15,556.00 (P7,778 * 2). Use P10,000 to pay the tuition then the remaining P5,556 can be used for other expenses.
In Option 2, since it offers only tuition reimbursement, any extra fund beyond the reimbursed tuition cannot be encashed. That means, if tuition per sem is P10,000, you won’t be able to receive the extra P9,759.
If CAP requires that Option 1 can only be taken if the beneficiary will enter college and that this plan cannot be assigned to another person, then there is no other choice but to take Option 2.
In Option 2, although the total amount to be received after 5 years (P155,560) is similar to the total gross price of the plan (P155,560), the planholder still lost because of the time value of money. With rising inflation, the P155,560 total amount to be received is, in real terms, way lower than this amount. What this means is that it would be better to get all that money right now than later.
In any case, this is still good news for planholders who thought there is no more hope for them with regard to their CAP educational plans. Getting something is, of course, better than getting nothing.
Got some more CAP updates? Have a CAP story to share? Post them here or join the discussion in the CAP Insurance, any experience? forum thread.
January 30th, 2010 at %I:%M %p
sir/mam,
tanong ko lang po,sumali po ako sa college assurance plan para a anak ko nong 2002 pa po,huling nagbayad po ako 07-28-05,makukuha ko pa po ba namin ang aming hulog? reply po please sa email add ko po.thanks.
January 30th, 2010 at %I:%M %p
Hi. Any updates on CAP. My son is to avail of the educ plan this coming school year 2010-2011. How do we go about it , where do we inquire, SOS please
February 6th, 2010 at %I:%M %p
I followed up my scholarship grant lately and one of the staff has required me to have a photocopy of my Transcript of Records that is to be forwarded at CAP Davao Branch.and advice me to follow up after 3 months.I hope it would have a positive response.
February 6th, 2010 at %I:%M %p
dito sa cagayan de oro branch ay hinihingan lang ng photocopy ng Transcript of Records at ifoforward pa daw nila sa Davao Branch.it would take another 3 months for it for a check to be released as per advice of one of there staff.
February 6th, 2010 at %I:%M %p
Hi Kenneth, Thank you very much. Is the Transcrip of Record the same as the final rteport card of my son in High School. He is about to graduate from lasalle greenhills.
February 13th, 2010 at %I:%M %p
my father subscribed an educational plan for me but i wasnt able to used it so i transfered the grant to my nephew. but now we would just like to ask if how can we refund the title into cash. please reply. thank you.