By Jenniffer B. Austria

Sales of pre-need policies rose 9 percent in the first 11 months of 2008, according to data from the Securities and Exchange Commission.

The number of pre-need policies sold from January to November totaled 228,170 against 209,251year-on-year. They were boosted by a 66 percent increase in sales of life plans to 157,226 from 94,614on year.

Sales of educational plans contracted 58 percent to 9,745 from 23,293 while those of pension plans declined 33 percent to 61,199 from 91,344.

Industry sources said if sales of pre-need policies in December remained strong, it could be the first time for the industry to post a growth in annual sales in more than five years.

Confidence in pre-need companies plummeted after some of the industry’s biggest players like College Assurance Plans and Pacific Plans ran into financial difficulty, leading to the non-payment of maturing obligations to clients.

Pre-need companies are confident the industry would recover from the slump as they committed to deliver commitments to planholders.

Sales in the 11-month period in peso terms fell 20 percent to P13.97 billion from P17 billion on year as customers opted for lower-priced products.

Sales in November grew 27 percent to 23,520 from 18,505 policies on year as sales of life plans soared 118 percent.

Sales of education and pension plans dropped as these sectors remain affected by the collapse of some of the biggest pre-need companies.