(Click on images to ENLARGE) Over the last few weeks, Rabbonim and Community Leaders in communities throughout the USA have met to discuss the implementation of the “Kol Yisrael Areivim” program. In each community, the respective funds will be managed by the local community, under the watchful guidance of the local Rabbonim.
By designating local leaders to oversee the funds, the community can rest assured that the money will be put to use in the most appropriate way, by those close to the situation.
Meetings were held in various communities, including: Boro Park, Lakewood, and Flatbush. Many communities were represented, including representatives for the Litvish, Chasidish, and Sefard communities.
Kol Yisrael Areivim a program of the Vaad Harabanim Leinyanei Tzedaka, is a breakthrough solution for the problem of raising funds for orphaned families.
The program works by combining groups of families who become responsible for each other in the event a family suffers a loss. At that time a fund is established of $100,000 per child orphan, with each family of the group contributing a one time payment of $6.00 per orphan. For more information about the program, call 877-527-3484.
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17 Responses
This system is extremely helpful in Eretz Yisroel where many families choose not to have health insurance and/or life insurance and fall into major debt when a member of the family becomes ill and is niftar. However it is theoretically possible for the system to not function as intended if too many children become orphaned in a given month.
Maybe we be zoche to only hear simchos.
A Ksiva V’Chasima Tova
What will be the criteria to receive funds from this areivim grant? Every yid can apply to receive these funds, or just specific families…..
Why not just buy life insurance? I fail to see the point of this program.
From the literature I have seen this is in essence a Life insurance program, the statistics should be the same as life insurance and it should basically equal a life insurance monthly premium. so why not just purchase life insurance? For those who want to argue this is chesed and tzedaka I’m not so sure thats true because the pool is limited to those who sign up “I’ll protect you if you’ll protect me” tzedaka and chesed is for the entire klal yisroel not just those who are members of the “Areivim Mutual Life Company”
The advantage of this program is that you do not have to pay any premiums in until Chas V’Shalom there is a tragedy. And then you only pay in according to how many children the niftar had.
For example, i think there were only 2 or 3 niftarim in one of the groups this past year. If each of two niftarim had 5 kids and the contribution was a one time pay of $5 per kid, each person in the group was only charged $50 for a whole year of life insurance.
there are two obvious advantages. Firstly, everyone of the 10,000 people in the group is davening you dont die, so they dont get charged. Secondly, if Chas V’Shalom someone does die, would you rather pay money to help support yesomim and almonos instead of a life insurance company?
This whole idea was analyzed by an whiz in life insurance from Lakewood, and he reiterated that the Arachiim idea is great but not realistic. Have the rabbonim get together and proclaim, “Buy TERM LIFE INSURANCE” to protect your spouse and children upon death.
This year in Etetz Yisroel, there were 4 deaths, and 24 yesoimim, meaning each family paid about 144$. This money was only in the event of a death. A similar plan from a term insurance, would be about 360$, so there is a 50% savings.
“there are two obvious advantages. Firstly, everyone of the 10,000 people in the group is davening you dont die, so they dont get charged. ”
And yet, people will still die. Such is life.
“Secondly, if Chas V’Shalom someone does die, would you rather pay money to help support yesomim and almonos instead of a life insurance company?”
If I die, I’d much rather my family collect a life insurance policy from a company than have to rely on 10,000 people sending in their $10 checks.
can someone please be so kind as to inform us of the difference between “kol yisroel AREIVIM” AND areivim. they seem to be seperate yet very much the same.
I am flabbergasted that this idea has been imported from Israel. Has any actuary been consulted about the feasibility of U.S. scheme or are they following the Israeli scheme, which to the best of my knowledge, did not have actuarial input in setting rates?
I trust that an insurance lawyer was consulted and that there is a legal opinion that the scheme does not run afoul of the laws of each of the states in which it is offered.
Plans like Arevim, called mutual assessment societies, were tried in the 1800’s and 1900’s in the U.S. They either went bankrupt or the societies offering the schemes were converted to regular Life Insurance companies.
Group term insurance can indeed be purchased at almost net rates. I believe that such a group program exists in the U.S. for Rebbes. Don’t think that there will be lower costs through these programs.
An Amazed Israeli Actuary
#9 I am also very confused! First I saw Kupat Hairs AREIVIM, (which I signed up for), now like 3 weeks later I see vaad harabonims version… ‘kol yisroel areivim’.
Why can’t these two seemingly competing organizations UNITE to ONE ‘kol yisroel areivim’??!!
#11 i have always been somewhat puzzled by these two institutions with what seem to be dueling claims of being the Gadol hadors favorite tzedakah and offering yeshuas and brachot.
is thier an irs benifit?
do orphans pay income taxes on benifets from life insurance?
will arievim be able to “legally ” avoid that?
In response to Sabra:
1. The contributions to Areivim, which I am sure registered as an american charity should be added to your itemized deductions (as long as they don’t exceed 50% of your adjusted gross income.
2. Usually, life insurance proceeds are not taxable. In this case though, they are not considered life insurance proceeds so I’m not sure what the tax treatment is. Usually “gifts” are not taxable to the recipient. If it’s considered charity, it might be different.
So Sabra, you’re going to sign up now?
I do wonder also: will the orphans receive one check from Areivim at some stipulated time (say within a month), or will they be waiting for the checks from everyone in the group to come in the mail?
#7 What does that mean there were only 4 deaths and 24 orphans? Only specific people who are part of this ‘plan’ avail themselves of the funds, who picks which families are needy. Too many unanswered questions for me to handle.
What ridicules comments!
Pick up a phone, call them and get all your answers.
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