License of Another Pre-Need Firm Revoked by SEC

The notice for the annual payment of Prudentialife Wealth Builder plan arrived last March and I was already preparing to pay it this week. The plan is to be paid in 5 years and it’s already our 3rd payment. I was surprised that I got contacted by a member of the forum where I belong asking whether I’ll continue with the plan or not.

Just a preview on this.

We acquired the plan last April 2007. Upon payment, we were given a temporary paper of which some of the details of the plan were written but the official documents were delivered after about a month. Upon reading the whole content of the documents, we realized that the agent (intentionally?) misinterpreted the contents. Or, the explanation she had given to us was for a different plan. We immediately faxed a letter stating the circumstances and demanding cancellation of the plan and refund of the payments made. Naturally, it was denied.

Upon inquiry and some research, we found out that there are other victims of the same false statements and/or misinterpretation by the said company

Recently, I found out that SEC handles such cases. If I had been more informed about 3 years ago then I might have been successful in cancelling the plan and getting a refund.

Now, reading the report from Inquirer.net stating that

The Securities and Exchange Commission (SEC) has revoked the license of Prudential Plans Inc. to sell pre-need plans because of a deficiency in its trust fund

I am more inclined to cancel the said plan with information and help of some forum members who were and/or are in the same situation as I am now.

It’s another expensive lesson in life as I was told by a sibling 3 years ago. A lesson that will never be forgotten when it comes to some scrupulous agents/companies who intentionally misrepresent their products/plans to entice new subscribers.