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Areivim USA is a dignified way to give צדקה. It is not Life Insurance and doesn't guarantee any sort of financial protection to its members. it is registered as a religious organization and as such isn't required to incur the additional cost of preparing and filing form 990 with the IRS.

http://www.areivim.info/rform.php

Eb228
Quote
I spoke to Areivim at length as I sell life insurance and wanted to best advise ppl that had Areivim already and wanted to supplement it with LI.
I was told that it has never happened that Areivim declined to pay out based on someones assets or LI. It has happened that the family told them they don't need the money, but they never told the family no.
Simple reasoning is, they also think that 100K per yasom doesn't really cover it, the program just won't allow for a higher payout at $28/ monthly. So they encourage everyone to have LI as well to make sure kids are adequetly covered, and owning LI does not disqualify a payout [unless each kid will receive over a million dollars etc].



Quote
They are tax exempt. Click on the below IRS link and then download the first attachment. Then search "Areivim USA"

https://www.irs.gov/charities-non-profits/tax-exempt-organization-search-bulk-data-downloads


This (I have been to a few Areivim meeting with these Rabbonim)

Harav Elya Brudny, Rosh Yeshivas Mir Flatbush;
Harav Yitzchok Isaac Eichenstein, Galanter Rav;
Harav Doniel Geldzahler, Rosh Yeshivas Ohr Yisrael;
Harav Binyomin Zev Landau, Tosher Dayan of Boro Park;
Harav Henoch Shachar, Rav of Klal Ohr Tuvia in Lakewood

Areivim Terms and Conditions (emphasis added):
Quote
4) Areivim USA is not life insurance. Areivim USA has been established primarily as a charitable endeavor and its halachic status is like that of all tzedakah money collected from the public. In the event of a the passing of a member rĒl, all contributions can be made with maaser money.

5) In the event of (G-d forbid) a large number of deaths among members (as a result of a war, an earthquake, etc.), Areivim USA reserves the right to consult with its Rabbinical Board on proper procedures.

6) Members have no rights to sue or submit legal claims against the decisions of Areivim USA or its Rabbinical Board, including for failure to initiate a collection. There are no oral agreements or other commitments between Areivim USA and its members, and no such oral agreements or commitments shall be given any legal effect.

« Last edited by ExGingi on May 30, 2021, 11:11:03 AM »

Poll

Do you have Areivim & Life Insurance? (NOTE: Areivim is not life insurance)

Yes
33 (67.3%)
Only Areivim
16 (32.7%)

Total Members Voted: 49

Author Topic: Areivim USA - Coronavirus  (Read 39237 times)

Online skyguy918

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Re: Areivim USA - Coronavirus
« Reply #60 on: May 01, 2020, 08:54:13 AM »
Been working for a very long time!
Its a good system!
What's a very long time? To give you some perspective on what a very long time actually means in the context of life insurance, the insurance company I work for celebrated its 175th anniversary this year.

Offline Dr Moose

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Re: Areivim USA - Coronavirus
« Reply #61 on: May 01, 2020, 08:58:25 AM »

Why is there not a single personĎs name, rabbinical endorsement, 501c3 number, or auditors letter on the website?

Iím not saying this is a fraud but how do you know that itís not? ( E.g. how do you know donít collect much more than they distribute?)

Why would a legitimate organization maintain that level of anonymity and not have rabbinical endorsements, or details of the members of a board overseeing it?

Even collectors seeking a few dollars in shul are expected to have documents verifying their legitimacy.
This is the biggest question of it all.

They are not running it like a charity organization, rather a business that is parallel to life insurance. Yes, they tell you to get life insurance, but they need to say that to cover themselves.
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Offline yesitsme

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Re: Areivim USA - Coronavirus
« Reply #62 on: May 01, 2020, 09:29:05 AM »
Ponzi schemes all ďworkĒ until they collapse. Even with traditional life insurance they only collect premiums while the insured is alive, hence you would only find out if they were broke once they had to pay a claim. This is a reason why insurance is highly regulated, thereís a lot of space for mismanagement (and fraud) that could cause customers to get left holding the bag when the company goes insolvent.
why would you call it a Ponzi scheme, its a charity organization, Covid is not something that happens everyday
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Offline JMHO

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Re: Areivim USA - Coronavirus
« Reply #63 on: May 01, 2020, 09:35:37 AM »

Why is there not a single personĎs name, rabbinical endorsement, 501c3 number, or auditors letter on the website?

Iím not saying this is a fraud but how do you know that itís not? ( E.g. how do you know donít collect much more than they distribute?)

Why would a legitimate organization maintain that level of anonymity and not have rabbinical endorsements, or details of the members of a board overseeing it?

Even collectors seeking a few dollars in shul are expected to have documents verifying their legitimacy.
They are a Ponzi scheme, plain and simple.
This has been disused so many times on this forum.
Clueless people sign up for a false sense of security or because they naively think they are helping some people. 
Get real life insurance for the same $28 a month.

Offline YitzyS

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Re: Areivim USA - Coronavirus
« Reply #64 on: May 01, 2020, 09:38:17 AM »
They are a Ponzi scheme, plain and simple.
This has been disused so many times on this forum.
Clueless people sign up for a false sense of security or because they naively think they are helping some people. 
Get real life insurance for the same $28 a month.
It's worked beautifully for so many years, paying out millions to orphans. Please explain why it should change?

Also, many many people see this as an amazing charity. Thus, even if they would shut down today, it would have been a resounding success. Remember, the end goal here for so many is not to get paid out by them. That possibility is only a side benefit.
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Offline AsherO

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Re: Areivim USA - Coronavirus
« Reply #65 on: May 01, 2020, 09:51:26 AM »
why would you call it a Ponzi scheme, its a charity organization, Covid is not something that happens everyday

The numbers donít add up. For instance, I pay in the same $28/month maximum even if I have 12 kids and my family stands to collect $1.3m.

It's worked beautifully for so many years, paying out millions to orphans. Please explain why it should change?

Also, many many people see this as an amazing charity. Thus, even if they would shut down today, it would have been a resounding success. Remember, the end goal here for so many is not to get paid out by them. That possibility is only a side benefit.

10 years is nothing in the world of life insurance. Most of their members have many decades of life expectancy kaĒh.

Offline Chapshnell

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Re: Areivim USA - Coronavirus
« Reply #66 on: May 01, 2020, 09:51:47 AM »
They are a Ponzi scheme, plain and simple.
This has been disused so many times on this forum.
Clueless people sign up for a false sense of security or because they naively think they are helping some people. 
Get real life insurance for the same $28 a month.

Hi, this may be your opinion but my opinion is that I am willing to pay a max of $28 a month for orphans while in the back of my mind know god forbid if something happens my family is "extra" covered.
your so called "clueless" chapshnell  ::)

Offline AsherO

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Re: Areivim USA - Coronavirus
« Reply #67 on: May 01, 2020, 09:53:14 AM »
Hi, this may be your opinion but my opinion is that I am willing to pay a max of $28 a month for orphans while in the back of my mind know god forbid if something happens my family is "extra" covered.
your so called "clueless" chapshnell  ::)

Youíre not clueless, but I bet 50% of Arevim members are uninsured. Pulled the number out of my..., but my guess is as good as yours, and itís definitely not 100%.

Offline Lurker

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Re: Areivim USA - Coronavirus
« Reply #68 on: May 01, 2020, 09:54:46 AM »
The numbers donít add up. For instance, I pay in the same $28/month maximum even if I have 12 kids and my family stands to collect $1.3m.

10 years is nothing in the world of life insurance. Most of their members have many decades of life expectancy kaĒh.

Take into account that, statistically, most of their members won't ever have to get paid out.
Failing at maintaining Lurker status.

Offline 12HRS

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Re: Areivim USA - Coronavirus
« Reply #69 on: May 01, 2020, 09:56:44 AM »
Take into account that, statistically, most of their members won't ever have to get paid out.

every term life insurance works that way

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Re: Areivim USA - Coronavirus
« Reply #70 on: May 01, 2020, 09:58:22 AM »
Take into account that, statistically, most of their members won't ever have to get paid out.

Why not? Do they plan on living indefinitely, or if Arevim hoping they pay in and drop off before they have a claim?

Offline RewardsAddict

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Re: Areivim USA - Coronavirus
« Reply #71 on: May 01, 2020, 09:59:11 AM »
Why not? Do they plan on living indefinitely, or if Arevim hoping they pay in and drop off before they have a claim?
I believe they only give money to each unmarried orphan. So if all your children are married, you would get nothing.

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Re: Areivim USA - Coronavirus
« Reply #72 on: May 01, 2020, 10:00:59 AM »
every term life insurance works that way

Correct. I'm not saying it's financially viable, but it's most definitely not a Ponzi scheme, where eventually everyone needs to be paid out.
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Re: Areivim USA - Coronavirus
« Reply #73 on: May 01, 2020, 10:02:07 AM »
Why not? Do they plan on living indefinitely, or if Arevim hoping they pay in and drop off before they have a claim?

As I understand it, they pay 100k for each unmarried child. Since most people in our communities TG live to see their kids get married, most will never see a payout.
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Re: Areivim USA - Coronavirus
« Reply #74 on: May 01, 2020, 10:02:57 AM »
If people have it in addition to life insurance, and view it only as charity, why not use the monthly contribution to buy someone life insurance from a reputable life insurance company? The chances of not getting paid out from a reputable (or even not super reputable) insurance company, even in situations like Covid19 are close to nil. Many of the life insurance companies have been around for 100+ years. That means they withstood many tests including WW2 and perhaps even the Spanish Flu.

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Re: Areivim USA - Coronavirus
« Reply #75 on: May 01, 2020, 10:04:19 AM »
If people have it in addition to life insurance, and view it only as charity, why not use the monthly contribution to buy someone life insurance from a reputable life insurance company? The chances of not getting paid out from a reputable (or even not super reputable) insurance company, even in situations like Covid19 are close to nil. Many of the life insurance companies have been around for 100+ years. That means they withstood many test including WW2 and perhaps even the Spanish Flu.

Not everyone qualifies for life insurance.
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Offline Chapshnell

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Re: Areivim USA - Coronavirus
« Reply #76 on: May 01, 2020, 10:09:30 AM »
If people have it in addition to life insurance, and view it only as charity, why not use the monthly contribution to buy someone life insurance from a reputable life insurance company? The chances of not getting paid out from a reputable (or even not super reputable) insurance company, even in situations like Covid19 are close to nil. Many of the life insurance companies have been around for 100+ years. That means they withstood many tests including WW2 and perhaps even the Spanish Flu.

because it doesnt work that way. kind of the same reason why people buy chinese auction tickets

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Re: Areivim USA - Coronavirus
« Reply #77 on: May 01, 2020, 10:10:19 AM »
Not everyone qualifies for life insurance.

they also have an underlying condition disclaimer but they dont take blood work

Offline Lou Bob

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Re: Areivim USA - Coronavirus
« Reply #78 on: May 01, 2020, 10:11:02 AM »
Not everyone qualifies for life insurance.
or for areivim insurance.

"13) In order that the Areivim USA contributors are not overburdened, the Rabbinical Board of Areivim USA has determined that collections will not be undertaken on behalf of survivors of members who were in ill health when they applied for membership. An applicant with a pre-existing significant medical issue may still contribute to Areivim USA by filling out the Program Registration Form and inserting a desired donation amount per orphan. Areivim USA also reserves the right to request medical records of a member in the case of his/her passing, to determine whether a fund should be collected."
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Offline michael

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Re: Areivim USA - Coronavirus
« Reply #79 on: May 01, 2020, 10:30:00 AM »
I have Areivim and also life insurance. As do several of my friends that have Areivim.

One important point is that the Areivim model becomes MORE sustainable with time. This is because members generally join in their 20s, 30s and 40s, when they have unmarried kids that would qualify for an Areivim collection. As these members age and marry off their kids, assuming they remain Areivim members, they would be donors but would no longer qualify for collections. May take 25 years to see the full benefits of this, but the numbers should get slightly better with time as kids are married off.