Compare Pre-Need, Pag-ibig MP2, SSS Flexi-Fund

Where can parents save for their children’s college education? Many pre-need firms in the Philippines have collapsed.

Where can we save and invest? So we will have money for our kids’ college tuition?

There are investments like stocks, mutual funds and bonds, but we must learn about how they work first. If you want to learn about mutual funds, the website of BPI, bpiexpressonline.com, is one site that you can explore.

There are also still reliable insurance and pre-need companies in the Philippines, but you need to research about their backgrounds, their performance, and how they went through past economic crisis worldwide and in the Philippines.

There are also 5-year time deposits or auto-renew time deposits offered by banks, but don’t expect big interests.  Avoid investing in rural banks’ time deposits that offer interest rates much much higher than those offered by big commercial banks. The website of PDIC, pdic.gov.ph, gives advice on time deposits.

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Here are 2 investment options:  Pag-ibig MP2 and SSS Flexi-Fund.

One of the big advantages of Pag-ibig MP2 and SSS Flexi-Fund over pre-need or insurance plans is the reality that you will never lose your savings in Pag-ibig MP2 and in SSS Flexi-Fund in case you lose your job or business and you are not able to continue adding to your MP2 and Flexi-Fund savings.

With pre-need or insurance plans, you will lose a BIG portion or ALL of what you have paid to these plans if you are not able to continue making your monthly payments.

Pag-ibig MP2 is offered to all Pag-ibig members while SSS Flexi-Fund is only for OFWs who are paying the SSS maximum monthly contribution, which is 1,760 pesos.

This chart below shows estimates of how much money you will get after paying 1,500 pesos monthly for 5 years.

YEAR PRE-NEED PAG-IBIG MP2 SSS FLEXI-FUND
12th Year Get 20,000
11th Year Get 20,000
10th Year Get 20,000
 9th Year Get 20,000
 8th Year Get 20,000
 7th Year Get   5,000
 6th Year Get   5,000 Get 104,500 Get 104,900
 5th Year Pay 1,500 Pay 1,500 Pay 1,500
 4th Year Monthly for Monthly for Monthly for
 3rd Year 5 years 5 years 5 years
 2nd Year = Total is = Total is = Total is
 1st Year  90,000  90,000  90,000
Has Credit No Credit No Credit
 Insurance  Insurance  Insurance
No Government With Government With Government
 Guarantee  Guarantee  Guarantee

 

NOTES:

. Credit Insurance means the pre-need firm will pay the 1,500 monthly premiums if the payor dies within the paying period

. Some pre-need plans do not give 5,000 on the 6th and 7th year. Instead they give 20,000 on the 13th year.

. The pre-need plan above may not represent all pre-need plans.

Related Article:

More Info on SSS Flexi-Fund and Pag-ibig MP2

11 Comments

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  1. Dear Maám Nora,

    Hi po! I am an avid reader of your blog and you helped me with my maternity claims back in 2012. Please continue this blog to inspire and to guide people. You have been such a blessing.

    Anyway, I just wanted to ask again, I am continuing my Pagibig now and paying around 2k a month or sometimes less but minimum of 1k. I wanted to use this in the future as my housing loan but then I dont know how to go about it. I have seen others’ blogs telling the people that for OFWs, the old number tend to be disregarded and in fact not recognized because it is not under an employee in pinas. Parang panibago na hulugan na sha. Now I wonder, do I continue saving in Pagibig or wag nalang. Im really confused on how to get the money unlike sa sss na mejo mas madali coz you can see your contributions online. Some more, yung unified id doesn’t help as well since iba iba pa din ung number that you have to remember.

    I wanted to get a housing loan in the future and refinance thru pagibig. Yet I am very confused and some more ang layo ko to do my research.

    Anyway hope to hear from you soon maám nora!

  2. Hi Leslie, thank you for appreciating my blog. Makes me very happy. Yes, the old Pag-ibig no. can be the same or different from the new Pag-ibig MID. I think it would depend on when the old number was issued. Anyway, it would not be so much a problem because when you register at pagibigfund.gov.ph to get your Pag-ibig MID no., Pag-ibig will give you the same Pag-ibig MID if they see that you already have your proper Pag-ibig MID no. This is how to get your Pag-ibig MID no.
    After getting your Pag-ibig MID no., you can check your contributions on pagibigfund.gov.ph. Click E-Services. As of now, only OFWs have this service.
    For Pag-ibig 1 savings (original Pag-ibig or mandatory savings), you can get your savings at age 60. Puedeng at age 45 if you’ve accumulated 240 contributions. For Pag-ibig 2 or MP2, you can get your savings after 5 years.
    For housing loan, I suggest you file your housing loan while you’re still an OFW because it’s easier to prove your source of income. Also, for OFWs, the ITR is not required. If you already have at least 24 contributions (P1 or mandatory Pag-ibig), you qualify. These are the documents required for a Pag-ibig housing loan: will get back. Thank you very much again for your inspiring comments.

  3. Nora,

    How are you?

    Leslie is right,making tulong mo Sa amin ,really.
    May problem ako about Pag ibig ko,Kasi lahat Lang sabi2x ang naririnig ko,kaya nag decide na ako magbakasakalu dito Kasi nag email na ako Sa Kabila pero walang reply same with sss,philhealth,owwa and pag ibig.

    Pag ibig member ako since 1998-2009 Sa government 2010 nagbayad ako pero di napatuloy Kasi d Pala hinuhulugan Ng ano as part Ng contract ko Sa Kabila.nagbatad ulit ako tapos nag iba ako Ng employer kaya nastop.huli ko bayad is 2012,october..ngayon gusto ko Sana ipagpatuloy maghulog para naman ako makaloan Ng calamity para Sa family ko Sa eastern Samar na affected Ng bagyong Yolanda or mutual loan,is ut possible kaya makalosn if emerged nila lahat contributions ko at pwd ko kaya mabayaran mga lapses?paano ko kaya malaman number ko at paano kumuha bg MID #

  4. Hi Cathy, This is how to get your Pag-ibig MID no. Even if you’re not technically OFW, since you’re overseas, you can check OFW so you can check your contributions on the Pag-ibig website. Non-OFWs do not have this service. You can pay your contributions (minimum is 500 pesos for overseas Filipinos) through IREMIT, PNB or Landbank remittance partners.
    About calamity loan, you can file your loan if you already have at least 24 contributions, and after your new contributions have already been posted (to show you are active).
    About paying retroactively: we cannot pay contributions for past months.
    Thank you very much for appreciating my efforts. Have another great day too

  5. Good day Ms Nora,

    After reading this article I get interested on enrolling myself on Pag-ibig MP2 and think of investing part of my savings there. When I started working I have been regularly setting aside a portion of my salary on savings no matter how small it is. We all know the fact that banks will not make our money grow much to our liking and more than we ever hope for.
    Having read this article, I decided to give Pag-ibig website a visit right away and find my way to the online services page and click on the MP2 enrollment (https://www.pagibigfundservices.com/). However, I get stuck right after supplying the MID number for the Security Code it requires. Where do I get my security code?

    Unfortunately, I don’t have my HDMF ID with me. It doesn’t have much use unlike my ATM (salary) and loyalty cards (purchases on groceries, medicines, school supplies, etc.) so I left it at home, and most probably would have to look for it this weekend. I got my HDMF ID way back in 2004 and as far as I can remember I don’t think it bears the security code on it.

    Thanking you in advance for shedding light on my inquiry and thanks also for sharing information, and your thoughts on the above and other articles you have relating to this. Companies won’t bother sharing this to their employees on seminars, meetings, and updates. Its not that they don’t care but employees should find for themselves.

    Keep up the good work. Maraming salamat po! Kim

  6. Hi Kim, thanks for appreciating my blog. Comments like yours inspire us.
    About your MP2 enrollment, try clicking “No Pag-ibig MID No.”. You will need only your tracking no. If you forgot your tracking no., enroll in Pag-ibig 1 again, even if you already have your Pag-ibig MID no. You will be given a tracking no. different from your first tracking no., but you will be given the same Pag-ibig MID no. You can then use this new tracking no. in your MP2 enrollment.
    I admire you for your determination to save. I wish all young people are like you. Keep going!

  7. Hi Ms Nora,

    Thanks you for your prompt response. That’s what I did last week since I couldn’t get through and missed spotting the line saying “No Pag-ibig MID no.”. I enrolled myself on the Membership Registration found on the online services menu and received an sms stating my tracking number afterwards. I’ll give it a try.

    Sorry about the double comment sent. I noticed that you have deleted it already. When I clicked on the Post Comment button, an error dialog box appears stating that I have already posted my comment when in fact I just clicked on it the first time after finalizing my review on my words. I’m not sure if it’s glitch from my end so I decided to remove an extra space from my composition and hit on the comment button again. Then a few moments by, just before I close off my browser, I noticed that my message here appeared twice. Should have been a bit more patient on waiting maybe a minute or two before doing that.

    Anyway, thank you for the advise. More power to you. Kim :-)

  8. Hi Kim, thanks again. About the double posting, it’s okay, no problem. I can just delete the 2nd comment if I see that it’s a duplicate. There are duplicates that appear from time to time, and the glitch is likely caused by our server or our template, not on your end. Continued blessings for you too.

  9. Hello Nora, I’m also interested in applying for MP2? What are the requirements. Can I still apply for this even if I have an existing housing loan and a delinquent salary short term loan? With regard to my STL loan or Salary Loan, I am already 1Yr delinquent, how am I going to settle this enable for me to qualify for a re-loan? Thank you so much. Sugar

  10. Hi sugar, if you’re an active Pag-ibig 1 member, even if you have existing loans, you can get your MP2 account no. and then start paying. http://pag-ibigphilippines.blogspot.com/2014/12/how-to-register-for-pag-ibig-mp2-account.html About your short-term loan: usually Pag-ibig uses members’ contributions to pay for delinquent STL loans (called offset). But you can pay your total arrears (12 x monthly amortization) and after this payment is posted, apply for a loan.

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