Why Would I Prefer Putting My Money in Coop than in Banks?



Theme: Death Claims

Hash tags: #PHCCI #KAISER #Investments #DeacesedDepositor



Earlier in August 2018, as you know, our patriarch in the family died suddenly due to sepsis and secondary kidney failure. And following that unfortunate event, is the gathering of assets or liabilities left by my father. This means, any savings and funds in his bank, stock investments, estate, cooperative (PHCCI) deposits, mortgage & loan payable and a lot more should be identified. The family has to endure with annoying processes on a number of data gathering, securing documents required to claim funds from my deceased father as his surviving heirs/claimants. Let me share with you what we have done based on OUR experience. It is not easy with banks! Swear!

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My dad is survived by my mother (spouse-heir) and 3 sons as heirs too (all adults of legal age). To sum it up, we are the legitimate family. As of this writing, we don’t know any illegitimate member of the family, yet. Hope, there is none.

So how did we move on after his death? Aside from the emotional recovery, paperwork is definitely something you may not want to do especially with banks!

Here is our journey with regards to death claims and related benefits:

1. We availed the embalming and funeral services of St. Peter Life Plan in Dumaguete. My dad is not a policy holder but my mom is. Good thing, the plan is transferable so she decided to have it used for my father instead. They took charge of the cadaver that night. Embalming starts after 8 hrs from the time the patient is declared dead by the attending doctor. We also secured some necessary permits from the hospital before the expired body will be discharged.

2. Paying the remaining hospital bills the next day after deductions from Phil Health, Senior (my dad is 65 years old and a registered Senior citizen) where 20% of the total amount is slashed off and some sum too from his health care provider, Kaiser International. This is a requirement to have his Death Certificate released which is essential for burial and other future claims.

3. Once we have the Death Certificate, we had the embalmer signed it. Went to the local civil registrar for the registration and reproduced certified true copies of it. Lots of it as we have a number of claims to make.

4. My dad is a retired government employee-DPWH and is a GSIS pensioner already at the age of 65. So we applied at the agency for his funeral benefit and submitted all necessary documents and forms. We have to wait for at least 2 weeks. Yes, this is serious!

 My mom as the surviving spouse gets to have the cheque for my dad’s funeral benefit. She automatically files for a “survivorship” with GSIS. It means, she will get 50% of the pension amount my dad is receiving every month. As of today, she’s also an SSS-pensioner of her own. The problem with GSIS, we have to keep calling them for a follow up!

However, we regret to have done this claim before withdrawing all funds from this bank tied to his pension. We could have pend this this thing, instead, process it late but within a month.

From what I know, after GSIS received info that the pensioner has died, it automatically registers it in their system. The bank  account tied to his pension gets notified and any succeeding pension benefits will be forfeited or the bank will freeze his account.

As a result, we weren't able to make any ATM withdrawals from his account. How unlucky are we? So we have to adhere to the bank's policy with their massive requirements. I'll discuss it below. I hate banks this time.

5. A death certificate is necessary for burial as well as for the necessary requiem mass. We have to ask for any available slots in our municipality or cemetery clerk for his final resting place. Fees should be settled. Another expense.

6. Since my dad is a member of a cooperative in Dumaguete city, the Perpetual Help Community Cooperative or PHCCI, then we are entitled for some burial claim. As of 2017, the heirs can claim a funeral benefit of Php 50K. Come 2018, it will be raised to Php 100K. If he has any outstanding loans, the balance will be deducted from his total fixed and savings deposits. Will get whatever is remaining.

Update as of October 2018, we received around Php 50k as life insurance too. We were surprised as we thought we aren't getting anything already but we did. We just learned that each member of PHCCI will have a life insurance benefit too. This is just great news for our family.

Requirements:

a. Death Certificate – Certified True Copy (3 copies)
b. Marriage Contract – Certified True copy since my mom is the spouse/heir (3 copies)
c. Valid IDs of the claimant (the spouse is this case) - Photocopies
d. Notarized forms (from PHCCI) - also 3 copies.

And releasing of entitled funds is just within a week after submission. This is actually easy and death claims transaction is smooth. Kudos to PHCCI in this regard.

7. Processing of Kaiser International Benefit (long-term health care) as I am the beneficiary. I will be receiving an amount equal to his policy. And any cash surrender value and remaining funds equivalent of his benefit account will be transferred under my name. This means, I will now have 2 accounts as I also got myself a Kaiser policy of my own.

Requirements:

a.      Certificate of Attending Physician (form from Kaiser)

b.      Certificate of Claimant/s (form from Kaiser)

c.       NSO birth certificate of the insured (policy holder) - certified true copy

d.      Death Certificate - certified true copy

e.      Marriage contract (if applicable)

f.        NSO birth certificate of the claimant/beneficiary - certified true copy

g.       Hospital bill, medical records from clinics and/or hospital of the insured prior to his death.

h.      Photocopy of Kaiser Policy contract (if still paying the policy or during the accumulation period) or the Certificate of Full payment (for fully paid policy)

i.       Valid Ids of the insured and claimant- photocopies


8. To the best of our knowledge, my dad  has bank account but unfortunately, it has been frozen by the said entity and funds can’t be withdrawn. This is where most of the headache starts! The processing and submission of requirements before funds is released is unimaginable. Since the bank account tied to his pension is from UnionbankPH, where he also have savings in big amount. We definitely wanted to have it released to us. However, here are their requirements:


Legitimate Heirs:

a.       Letter request, stating the death of deceased depositor, purpose to release the balance from his account.

b.      Death Certificate (certified true copy or NSO)

c.       Valid IDs of the claimants or heirs. In our case, my mom, me and 2 of my siblings

d.      Marriage certificate of my mom (NSO)

e.      NSO birth certificate of the children heirs

f.        Passbook or atm. If loss, secure an affidavit

g.       Quitclaim and Indemnity Agreement signed by all heirs in favor of the bank.


Legal:

a.       Affidavit of Extrajudicial Self- Adjudication (if sole heir).

b.      Extrajudicial Settlement by all heirs.

c.       Surety Bond from a 3rd-party insurer. Value is half the amount being claimed. Heirs bonds is 2 years! The heirs should find an insurance company just for this bond. WOW! Or depending on the Legal Adviser, the 6% estate tax can be deducted against the claimed deposits.


BIR:


- Get new TIN for the estate and secure BIR Form 1904. Pls. refer to the new TRAIN LAW on withdrawal of deposits from a deceased depositor.

Illegitimate heirs:



a.       Affidavit of the Illegitimate child as proof of filiation.  Should be presented along with NSO Birth Certificate, Court Record, Authentic writing (letters, report card, signatures), Judicial recognition of filiation.



It seems we will have a hard time with the BANK's system. Imagine those requirements! That would mean time (for waiting) and big expenses as we will need to hire a legal entity for some of it. Surety bonds for 2 years and half of the amount?! Such a B*. And there is a mandatory visit to BIR. I just hate that agency! Swear!

There is a possibility we can't claim his total remaining funds in the bank due to these requirements that are just too many. Are Death certificate and other NSO documents not enough? I mean, aren't these documents enough to prove that someone is dead? Why would let the family suffer from this unfair policies that we currently have. These laws should be amended.

I could really compare that PHCCI has the easiest system when dealing with claims or transferring of funds.

As to GSIS, it took them time to release the burial claim. Well, it has been running 2 weeks already after the exact burial of my father before that cheque is released. Isn't that the sole purpose? For assistance DURING the burial? We definitely made a few calls with the agency re: follow up. Only in the Philippines!

Update: Check was released after 2 weeks. 

As to Kaiser International, the annoying part of the requirement is chasing the attending physician who declared my father dead. I just don't like visiting again the hospital or his clinic just for his signature and it took him time to affix that freaking signature! Talk about 2 days! The pain of waiting. But the process is smooth so far. Claim is available after two months though. At least!



After knowing these processes, these are our courses of action:



1.  Get a joint account with my mom with PHCCI Coop. For signatory purposes, we should have it set to “OR” for our signatures. Meaning, either me OR my mom can withdraw funds in the event of any unfortunate event in the future. God forbids.

2.  Maintain my bank accounts for the purpose of accepting payments only from my business. But will make sure funds are transferred to my coop account or investment accounts in stocks, mutual funds and insurances.

3.  Increase our Emergency fund where we can use an ATM for withdrawal from the bank equivalent to at least 6 months of salary or payroll or income.

3 comments:

  1. Tnx for this information. It will be helpful for me inasmuch as the bulk of my savings is in the bank.

    ReplyDelete
    Replies
    1. You're welcome. It is nice if you can spread your "savings" in other investment schemes and not just put it in one basket (bank). I suggest to get as much as Health Insurance as you can. Both short term and long term. Like in our case, in just 2 days, our hospital bill went up to more than Php 100K. If we weren't not able to get insurances and all, I don't know what to do.

      Delete
  2. I wish more authors of this type of content would take the time you did to research and write so well. I am very impressed with your vision and insight. Coop insurance

    ReplyDelete

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