The astounding growth of the Yeshiva oilam in Lakewood brings incredible satisfaction to Yidden around the world, regardless of where they themselves live. With such rapid growth also come new types of challenges, many of which were once unimaginable. We are indeed fortunate to have numerous askanim in our midst, who rise to meet each new challenge.

In recent years, dedicated askanim have worked tirelessly and relentlessly to champion the cause of universal and affordable life insurance for all. Here in Lakewood, however, their mission was complicated by the unique situation: thousands of fathers who are sitting and learning in kollel.

Surely, these fathers would want to know that their families are provided for in case of the unthinkable.  However, no life insurance company would provide a student with any significant amount of coverage!  Furthermore, the expenses involved in trying to obtain such a policy are far beyond the budget of many yungeleit.  Although the Roshei HaYeshiva and gedolei Yisrael feel that it is extremely important for the yungeleit to have coverage, the fact remains that given the realities, most yungeleit do not possess the life insurance policies that are so vital to their families—and there didn’t seem to be any possibility of them obtaining it any time in the near future.

A Groundbreaking Solution

The askanim came up with a solution as simple as it was groundbreaking: the establishment of group coverage for BMG’s talmidim. A simple strategy indeed—but one that, logistically speaking, did not stand a chance. Insurance company policies blocked certain aspects of any potential coverage plan, and state law seemed to lock out the possibility.

Enter Mr. Heshy Markowitz.  An insurance broker for the past 38 years, Mr. Markowitz took early retirement from MetLife and began his own independent insurance agency.  As an independent broker, Mr. Markowitz has the freedom to ‘shop around’ for policies, suiting them to his clients’ individual needs.  Over the years, Mr. Markowitz was able to work with a number of yeshivos, enabling them to overcome the hurdles that stood in the way of their creating policies for their rebbeim.

How did Mr. Markowitz get involved with BMG’s life insurance initiative?  “A couple of people pushed me—Albert Kahn, who was recently honored by Agudath Israel of America for his work in this area, and others,” Mr. Markowitz recollects.  “They saw that I was able to do this kind of thing for other yeshivos.  In earlier years, I worked as a contract analyst, so I’m able to define the wording of a contract.  When the insurance companies deal with me, they know that we’re speaking in the same terms.”

The challenge of providing BMG’s yungeleit with life insurance was formidable, but Mr. Markowitz was motivated by the task.  “All these years, I’ve been involved with insurance.  You come to me in the middle of the night, and I can ‘talk shop’ in my sleep.  All these years, I haven’t been ‘in learning’.  So for me to be able to take what I know, and use it to benefit the yungeleit, is an amazing opportunity.  The biggest satisfaction is being part of the team that’s making this happen.”

The Obstacles

What makes the idea of mass coverage so complicated?  A lot of things.
For one, usually insurance policies are administered through an employer or an association.  For its talmidim, BMG is neither of those.  Furthermore, no insurance company would offer a student a policy with more than $250,000 of coverage.  For the large families typical in our spheres, such an amount is simply not enough.  And despite the amount of coverage necessary to make a dent in the expenses of a large family, the policies had to be made affordable for yungeleit on tight budgets. Finally, there were a steady stream of clauses and caveats that needed to be dealt with, both with the companies, and with the governmental bodies regulating them.

The process evolved over the course of the past three years, making progress and skirting hurdles as they arose.  The first step was to find a suitable carrier that was both capable of maintaining such a responsibility—with a portfolio and financial ratings to match—and flexible enough to create an entirely new policy just for this purpose.

Mr. Markowitz began contacting and meeting with company representatives and underwriters.  Some of the companies presented so many obstacles, that it was almost impossible to get a quote.  After all, never before had any college undertaken to take out a policy for its students; the move was unprecedented.

Finally, the ideal company was found: Standard Life Insurance Company, generally known as The Standard.  AM Best and S&P, two well-known apparatuses that rate insurance companies, both give The Standard top financial ratings.  The company is known for strong financial performance, superior coverage, and, most importantly, the resources and wherewithal to carry through with payment should, chas veshalom, the need arise.

BMG’s Eligibility

Now that an insurance carrier was selected, the real negotiations began.  To an insurance company, there are two most important factors involved in the issuance of a life insurance policy: life expectancy of the applicant, and ability of the applicant to pay for the policy.  In other words, the company wants to be sure that A) the person is not likely to die, so the company has little likelihood of ever having to pay the benefit, and B) the person is financially capable of paying the premium.

When it comes to the first factor, the expected lifespan of those covered, BMG’s students ranked very well.  The majority of the students are in their twenties and early thirties.  Furthermore, the constant turnover ensures that the average age will stay in the late twenties—in general, older talmidim leave, and younger ones come.  This is in contrast to employers, where the average age of employees gets older with the company.

The second major issue, that of the students’ capability to pay the premiums, should have been a gigantic problem.  Typically, rebbeim with steady, albeit meager salaries are only offered policies of approximately $250,000.  Nevertheless, the problem was easily solved in the following way: BMG assumed full responsibility in guaranteeing payment.  The talmidim will make their checks out to BMG, and BMG will make one payment to The Standard.  Ultimately, BMG will be held financially accountable for the entire package.

The Negotiations

Two major hurdles crossed, and dozens more to go!
In order to protect consumers, insurance companies are regulated by government agencies.  As such, they are bound by various federal and state regulations.  Governmental policy, as it was, did not allow for this type of plan to be issued.  BMG’s askanim swung into action, lobbying in Trenton for a redefinition of the law.  The askanim argued that the details of the plan actually did reflect the intent of the law.  They also added the logical rationale, that in the event of tragedy r’l, it would be to the State of New Jersey’s definite benefit to have families covered by insurance, rather than families who would become permanent burdens to the State.  After much back and forth, the government approved the plan.

A bevy of clauses needed to be negotiated amongst all parties.  First amongst them were the amount of coverage to be issued, and the cost of the policy.  Mr. Markowitz was able to negotiate a deal: $500,000 death benefits, at the amazingly low cost of $295 per year per talmid.

Another crucial factor was the yeshiva’s insistence on across-the-board coverage, regardless of the applicant’s physical health.  The Standard agreed that all those who join with the initial enrollment can do so without having to undergo any medical testing at all.  Incoming talmidim will also be able to join without medical testing.  Even if someone was already r’l diagnosed with an illness, he would be covered under the plan.  (However, if a talmid chooses not to join at this time, but would like to join later, he must provide proof of good health.  In this way, the company is protected from people seeking to join the group because of a new diagnosis.)
The yeshiva made a host of other requests as well, in order to provide the very best policy for the needs of its talmidim.

The Plan

Finally, all of the particulars were agreed upon.  As it stands now, the plan is ready to roll—once enough talmidim sign up.  In specific:
The policy offers $500,000 life insurance benefits to every full-time talmid of the yeshiva below the age of 50.  Full-time students are defined as those who are enrolled in yeshiva for 12 credits each semester—namely, morning and afternoon seder.  Once students reach the age of fifty, they may decide between the conversion and portability options of the plan (see below).

Every talmid has the option to join the plan or not to join.  At this time, no medical exams, lab tests, or financial disclosures are required to join.  If a talmid who initially did not join the plan chooses to sign on at a later date, he may be required to take a medical exam and/or lab tests, unless he has recently experienced a family status change (ie. marriage or the birth of a child).

The costs of coverage are $295 per year.  The yeshiva has locked in these rates for the next three years; so until 2011, the rates must stay the same (assuming, of course, that enrollment is not dramatically reduced).  Additionally, Beth Medrash Govoha has put together a fund that will subsidize $100 of the cost for any yungerman who request this assistance.

In case of a tragedy, r’l, payment is made directly to the family, within a short amount of time.  Talmidim have the option to designate their beneficiaries; if no choice is made, the spouse will automatically be assumed to be the beneficiary, followed by the children.
The policy also includes a number of courtesies. For example, the accelerated benefit clause states that if a person r’l is diagnosed with a terminal illness, the company will release up to $375,000 of the coverage, in order to help pay for medical expenses.  Any remaining funds would be paid out as a death benefit.

When a talmid leaves yeshiva or reaches the maximum age, he has a number of options.  The Right to Convert provision states that every insured talmid retains the right to convert his policy to a whole life policy without undergoing medical testing, once he leaves yeshiva or reaches the age of fifty.  The Portability of Insurance provision states that when a talmid leaves the plan, he has the option of staying on the plan at group rates for another two years; however, his coverage would be reduced to $300,000.

A Caveat

With all of the phenomenal benefits involved in the policy, Mr. Markowitz states clearly that it is in no way meant to replace anybody’s existing life insurance policy!  Most people who have insurance policies have locked-in rates for a substantial amount of years.  If the subscriber would cancel or downgrade that policy, he would have to go through medical testing, and get an entirely new price quote, once he decided to pick up the policy again.
Additionally, although the conversion and portability clauses are wonderful, they are not the best option for most people. Either way, if someone already has a good policy, he should definitely keep it, in addition to this group plan.

Mr. Markowitz also hopes that the yeshiva’s initiative will cause people to take stock of their existing coverage—or the lack thereof.  Realistically speaking, many families could use more than $500,000 policies.  And the importance of coverage for mothers, particularly if they are also breadwinners, cannot be overlooked.*

Making it Happen

The plan is ready to be set into motion.  The Standard has issued their final okay.  The Roshei Yeshiva and Mashgiach shlita have given their wholehearted approval, and strongly urge every yungerman to take advantage of the coverage. 
There is, however, one last critical aspect that remains:
According the agreement with The Standard, the plan can only be implemented if at least two thirds of the talmidim of the yeshiva join! 
The yeshiva has mailed information packets to all of the talmidim, which include details of the plan, as well as forms enabling each talmid to state whether he chooses to opt in or out of the plan. Talmidim are asked to return their forms by July 30th, whether they choose to join the plan or not.  By joining the BMG life insurance initiative, each and every yungerman is not only insuring that his own family will not be subjected to the heartbreak of becoming recipients of tzedakah; he is guaranteeing that his fellow chaveirim will be able to benefit from this program as well.

As the popular saying goes, if you bring an umbrella, you can be sure that it won’t rain.  In the zechus of this demonstration of collective responsibility and caring, may the Ribono shel Olam shower us all with gezunt and nachas, ad meah v’esrim shanah.

Informational seminars regarding the BMG Life Insurance Initiative are scheduled to be held July 8th, bein hasdarim in the Beren Building. For further questions and clarifications, please contact the yeshiva office at (732) 367-1060 ext. 284.

*Individuals interested in finding out about life insurance options for wives and individuals over 50 are welcome to contact Mr. Markowitz, at (718) 484-4797.

(YWN thanks the Voice of Lakewood, for the hard work which went into writing this article, and for allowing YWN to reprint it)