Lifeshare has the advantage on 1/2. On #3 - if you’re referring to the fact that funds are usable immediately for funeral expenses and the like vs going into an orphan fund account for future use - Arevim has a far higher payout per family. If there’s 5 kids and a wife they’ll receive $900k vs $100k-250k from Lifeshare. They can easily use the wife allotment of $150k to cover it.
Comparing apples to apples - Arevim pays out 150k per child + spouse and charges members $10.50 for each one. LS charges $14 for 100k total payout, or $32 for 250k payout. I’m not sure why LS is aiming for a group size that is exactly half the size of AR’s, or why the 250k coverage is relatively cheaper in comparison to the 100k plan. If it’s all going to the family then it should be exactly 2.5x more expensive than the 100k plan.
Also the $25 annual fee LS charges for overhead seems expensive, assuming 1 death per month (based on their estimates), their overhead is 15% of the 100k plan annual payments. OTOH Arevim doesn’t disclose or split out overhead, which means it’s coming out from member costs, so it’s impossible to know how many extra members need to be added to the group just to cover that. You’re paying for overhead one way or another.
Another point of difference is Arevim is tax deductible while life share isn’t. I’m guessing that has to do with the guaranteed payouts.
- Areivim might pay more, since they pay per orphan, but they do not pay lump sum or immediately.
- I also wondered about the 250k payout not being 2.5x, maybe the pool size is different?
- At least the $25/year fee is transparent, assuming their overhead isn’t more than that. For a pool of ~7,800 that’s like $200k a year, which isn’t much considering transaction processing fees, office/technology costs, salaries, legal/accounting(/independent auditor?) fees, etc.
- I don’t know why LS says they aren’t tax-deductible, Google tells me 501(c)(8) donations are deductible if they are for charitable causes, collections for bereaved families probably qualify.
Some other notes:
- LS doesn’t have any spousal coverage option so anyone wanting that would need to pay for two memberships/double payouts.
- LS stops paying out at 65, hard stop, so in that aspect it’s a bit similar to term life insurance. I guess Arevim wouldn’t pay out either if all the children of the deceased member were married.
- LS lists so many Rabbis who supposedly endorse them, but ironically don’t say who founded or runs the organization, at least I didn’t see it when I went looking on their website.