MANILA, Philippines - Thirty-one pre-need firms, including Prudentialife Plans Inc., have trust fund deficiencies and are not allowed to sell pre-need products.

Insurance Commission (IC) spokesman Atty. Luke John Apatan said most of these firms will proceed with liquidation if no fresh capital is infused.

In the case of Prudentialife, the IC will still conduct a hearing on March 2 and 13 to determine if its educational and pension plans can be converted into life insurance. Otherwise, the company will proceed with liquidation.

Prudentialife has a current trust fund deficiency of P11 billion. If liquidated, the company's 330,000 plan holders will get less than half of the value of their plans.

The IC is planning to conduct a deeper probe into possible illegal diversion of funds outside the trust fund during heydays of the company. If proven, a case of large-scale estafa may be filed against the owner of the firm.

The IC has advised consumers to be careful when buying pre-need plans, adding they should make sure to check first if the company offering such products are licensed and of good standing.

The list of the licensed pre-need firms is posted on the IC website.