by Anonymous

Op-Ed: The Case for Areivim

Areivim is a non-profit “life insurance” organization that has been steadily growing in popularity within the Orthodox-Jewish community these past few years. Though it is the source of much controversy, I believe that much of its opposition stems from a lack of understanding about how it works and why, which I will endeavor to explain in this op-ed.

Before I begin, I think it’s worth mentioning that both my wife and I have had life insurance policies for over a decade now, and still do. I would also like to clarify that I am not affiliated with this organization or its founders in any way.

A Brief Overview of Areivim

Areivim is a non-profit organization founded in 2009, with the goal of providing families who have lost their breadwinner with the means to support themselves in an honorable way.

To accomplish this, they have created a large group of community members who commit to each other that if Ch”v someone in the group passes away – the group will take care of the family they leave behind.

If a member of the group passes away, each member of the group is charged several dollars per unmarried orphan, with the family receiving a maximum benefit of $100,000 per orphan.

As more people sign up and the pool gets bigger, the amount collected per orphan is reduced, though payouts become more frequent.

The Arguments in Opposition

Argument 1: This isn’t a fair policy, because a family with ten children will get a million dollars while a family with six will only get six hundred thousand. Yet the payments are still the same.

My answer:

We all know that there are different levels in giving Tzedakah. The reason giving someone a job is the highest form of Tzedakah is because the person doesn’t feel that he is getting charity, he feels that this money is rightfully his – and it is – because he worked for this money.

Areivim is NOT a life insurance policy and must be seen as a Tzedakah. However it gives the money in an honorable way. The receiving family feels – and correctly so – that they paid into the program and are now getting the benefits of what they paid for. No shame, no fundraisers, no banners on the streets. They get what is rightfully theirs.

Once we look at Arievim as a Tzedakah, it makes sense why the policies differ. The community is giving each recipient according to their needs.

Argument 2: Such an organization creates a false sense of security, luring people to use it as a life insurance policy and not to buy actual life insurance.

My answer:

Life insurance is a must; a person must ensure – during his lifetime – that his family is taken care of if the worst happens, r”l.

That being said, the community must also face the fact that not everyone is going to get life insurance. Not everyone can afford it, and many aren’t eligible. The community must provide for these families as well.

As a side note, I have spoken with a few life insurance brokers who have noticed a clear uptick in interest due to the publicity that Areivim has been bringing to this very important topic.

Considering the recent tragedies that have befallen our community, and Shluchim in particular, it is of utmost importance that we protect ourselves by signing up for life insurance, and protect ourselves and others further by enrolling in Areivim.

May we merit a time when such organizations will be obsolete with the coming of Moshiach now.

For more information, or to enroll in Areivim, click here.

34 Comments

  • it's a good org, but...

    it’s a good idea and for a max $336 charge per year, why not?
    it’s definitely maasar money eligible.
    however, it’s doubtful they can really pay if ch”v needed the amounts they promise.
    any actuary will tell you that insurance works on mathematical equations that take into account age, health, probability, mortality charts.
    they don’t and it just won’t work out in the long term.
    at some point they will have to decide who gets and who doesn’t
    that said, you’re helping orphans and widows in a respectable manner, and for however long it lasts, it’s a good cause

    • ensuring sustainability

      They do ask about medical condition when joining. If someone doesn’t say the truth they wont payout.

      Also if the group gets too big they will break it off into two separate groups, that’s how it was done in Israel.

      So they are putting in place assurances to ensure sustainability.

  • Areivim has already been debunked

    Every year this comes back around. Don’t fall fo this. There are many reasons why you should NOT contribute to Areivim, all you have to do is google them.

    They are NOT life insurance.

    See this article: http://www.rabbihorowitz.com/PYes/articleDetails.cfm?Book_ID=1310&ThisGroup_ID=262&Type=article

    Their listing on Charity Navigator is a one star rating AND they give a false description of their mission: “Areivim Philanthropic Group identifies, analyzes and studies the issues that face the North American Jewish Community, particularly in the areas of formal and experimental Jewish, Hebrew and Israel education, and to determine areas of programmatic action through grantmaking and the sponsoring of programmatic development. This is accomplished by making grants to support Jewish and Hebrew educational and charitable organizations and programs, raising public awareness about these initiatives in North America and Israel, cooperating with other charitable organizations, and conducting other activities necessary to further these purposes.”

    http://www.charitynavigator.org/index.cfm?bay=search.summary&orgid=14089#.U8bSmUAvyYg

    Why won’t they tell anyone who is in charge? http://dovbear.blogspot.com/2010/05/is-areivim-isnt-scam-why-does-it-act.html

    more links:
    http://orthonomics.blogspot.com/2011/05/time-to-revisit-areivim.html

    • A different org!!!! do research before you attack!

      Before you bash please do the minimal amount of research!
      Rabbi Horowitz posed those question to an organization called Kol Yisrael Areivim NOT TO AREIVIM USA!
      Areivim USA has no connection to the now defunked Kol Yisraol Areivim.

      Please be a man and admit that you jump to conclusions without knowing the true facts!

    • arevim usa is not kol yisrael arevim

      arevim usa has a five year track record, and is not affiliated with the program in eretz yisroel

    • Two separate organizations

      Rabbi Horowitz posed those questions to Kol Yisrael Areivim which has now closed down.

      This is a totally separate organization with a good track record and transparency.

      Please be careful before you attack.

    • ask the families

      Why don’t you ask the widows and orphans who were helped if this is a scam?
      My children are all grown, but I still contribute at a reduced rate of $3 per orphan R”L.
      Look at the Rabbonim who are assisting the recipients. They are well known, respected rabbonim from (too many) frum communities in America.
      The system works. And if it only works for 10 years, so at least for 10 years, member families won’t have to become beggars for tuition and chasuneh expenses. And it’s already 1/2 way to 10 years. Don’t knock it.

  • Lubavitcher rabonim???

    Do our rabbonim endors this org? seems like a very good idea

  • Attorney

    This is a ponzi scheme. They are preying on the unsophisticated (business wise) among frum yidden. Very sad.

    • DA

      Please research the concept of ponzi sceme. This is most definitely not that. A ponzi involved promises of returns based on investment, here you aren’t expecting any returns in your lifetime. It is merely a beautiful tzedaka concept.

  • A must?

    To the author:

    What is your source in Torah that life insurance is a must???

    Where does the Torah indicate that a person must think about how his family will be provided for after death?

  • nice idea but....

    This scheme in theory is great but in reality it relies on all the people signed up to pay the contribution in the even, G-d forbid, of someone needing a payout. The “member” have the money taken directly from their account and even if such a scheme was created by a group who were properly regulated to ensure no fraud etc etc, the system will fall down if the individual contributors don’t pay, won’t pay or can’t pay at the time the time the money is needed – how will the administrators deal with this? Throw out that member , sue him for the non-payment of a few dollars? All well and good but won’t help the widow or orphans.

    • Anonymous

      A member who does not pay, will be taken out of the group and no fund will be created if ch”v something happens to him.
      There is no forcing anything. its very simple cover others and they will cover you. Don’t and they wont!

  • nsker

    I read thus far:


    GOALS AND PRINCIPLES
    1) Areivim USA’s goal is to assist families in which a parent has passed away and unmarried children under the age of thirty five are left to struggle financially…

    really? 35?

    In all seriousness, if this is not a scam, they worked very hard on making it look like one. The website has no identities of leadership, no financial plan or disclosure of the size of member pool, not even the usual rabbinical haskomos. I would be surprised to see a single certified investment or actuary professional to put his name on this.

    The guidestar report shows they took in $1,88mln and distributed $828,902 during the last available reporting period in 2011.

    • yes, believe it or not

      Crown Heights still has many singles living at home, looking for shiduchim, and they are not 21 anymore. Yes, their parents – approaching retirement – still want to help them with their chasuneh and setting up their home.
      If your still single son or daughter was 30+ you wouldn’t be so stingy.

    • Guidestar

      It seems that the guidestar report has nothing to do with the organization being discussed here. The one in guidestar is Areivim philanthropic group while the organization discussed goes by the name Areivim USA.

  • Smells

    “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.”

    For terms and conditions. This sounds like, they have no responsibility to you to collect on your behalf. which means they can keep your money and not pay your family when your gone.

  • Sruly C

    I know for a fact that most guys my age 30 and under don’t have policy’s. People WAKE UP ANS STOP SLEEPING, EVERY SINGLE FATHER ANS MOTHER NEEDS MINIMUM A MILLION DOLLAR POLICY.

    PLEASE DON’T RELY ON CHESED PONZI SCHEMES!!

  • Dina Dimalchusa Dina

    Why is this so-called Op-Ed written by an Anonymous Author? If the author truly believed in what he was writing, and had no conflict of interest, he would have no problem putting his name on his own Op-Ed. With an Anonymous author, I would be very cautious in getting involved with this controversial non-profit. Do yourself and your family a favor, buy a Life Insurance Policy today, and leave this so-called Arevus scheme for others.

    • I guess the same reason you didn't sign your name?

      Life insurance is expensive. Lets say you are 20 and buy a thirty year term policy because Whole Life policies are way too expensive for teachers and other minimally paid people.
      Now you are 50, your kids are in shiduchim, and your policy expires. You have health issues and can’t renew at an affordable rate. And then what? People die and leave their kids to beg for assistance?
      This is where Areivim comes in. If there’s not enough life insurance, or any at all.

    • Dina Dimalchusa Dina

      Hamotzi Machaveroi Oluv Harayeh, the one writing this so-called Op-Ed is trying to get people to spend money on this scheme. Therefore, it is incumbent upon him to prove that this is not a scam. Not putting his name on his own Op-Ed indicates that he is not convinced this is legit. Therefore, he has no right to try to persuade others to donate their hard earned money. Telling people not to give just upholds the status quo, therefore, I don’t need to print my name at all.

  • I know a family who got 400k from them

    not a scam. please have an open mind.
    as mentioned in other comments the rabonim of crown heights and many many other rabonim endorse this program.

  • follow the money

    gee, 1.88 million in, 900k out? someone’s making a good living at this.

    with no disclosures at all financially or otherwise (aside from anecdotal evidence from folks saying ‘I know so-and-so who received $ from them) it sure smells like a fish.

    i’ll pass, thanks. they don’t trust me enough to tell me what’s really going on, I won’t trust them with my tzedaka…fair enough?

    • did you look at another org like others?

      there was another group using a very similar name. please double check this guys have a lot of transparency and have no affiliation with the other group

  • SO many questions left unanswered

    1) What happens if too many people don’t pay when someone needs to collect upon becoming orphaned or widowed?
    It’s fine that anyone who doesn’t pay doesn’t collect if c’v there’s a death. But what about those in good standing, when not enough others have paid into the fund?

    2) If someone is participating in it “as a tzedakah,” and has more than enough life insurance, etc. on their own, it doesn’t make sense to me that they should ever collect. Yet, who (even someone who’s well provided for) would turn down monetary offers of help at a scary time like this? This makes me think that calling it a tzedakah is not really 100% accurate.

    3) For what each family would contribute to Areivim, they could buy life insurance. Members of the frum community sell life insurance, often at very low prices. Wouldn’t that be better than taking business away from them?

    4) There will always be families who won’t participate in Areivim, and when there is c”v a loss, the community will still be called upon to help them, which we will do of course. How will Areivim prevent that? I speculate that it won’t.

    5) I’m all for helping families in need. Why ask families who are already in need to participate in paying for that, if they truly can’t afford to?

    • Answers from a bystander:

      1. There exists no guarantee that there will be enough to participants to cover a “claim” at any given time, therefore it is more of a Tzedokoh than a business arrangement.

      2. If you don’t want to call it a Tzedokoh, you can call it a “co-op” if you prefer (see definition).

      3. It seems to me that Areivim is much less costly than life insurance, it helps others, and payments are almost exclusively for the specific purpose of paying out “claims” rather than fattening the coffers of corporate culture.

      4. Areivim is providing another outlet for people to manage their needs. It is not claiming to be a solution for everything in the Jewish community, not even in the area they specialize in, but rather it is another Good effort among many.

      5. I’m quite confident that Areivim will accept sponsorship of families who cannot participate in the usual manner. Please contact them if you are able and willing to sponsor those for whom even Areivim is out of their budget.

      Tizku le’Mitzvois

  • To: Answers from a Bystander

    Thank you for your answers.

    At the same time, several of your answers are rather speculative:
    There exists no guarantee….
    It seems to me….
    I’m quite confident that….
    (In none of these statements do you know for sure!)

    I am also troubled by your comparison of a charity’s cost of doing business to an insurance company’s cost of doing business: as if the two should compete with each other, rather than the more accurate fact that we should definitely all buy life insurance AND we should also give tzedakah (whether through Areivim or otherwise).

    Plus, you make life insurance companies (who guarantee payment!) sound like an evil (“fattening the coffers of corporate culture”)–never mind the parnassah earned by many frum life insurance salesmen and saleswomen!–while Areivim is somehow all things to all people (“I’m quite confident that Areivim will accept sponsorship of families who cannot participate in the usual manner.”)

    At the same time of course, UNLIKE life insurance, you admit that “There exists no guarantee that there will be enough to participants to cover a ‘claim’ at any given time,” even though the article states that Areivim exists for “providing families who have lost their breadwinner with the means to support themselves in an honorable way.”

    Maybe the article should have stated that Areivim exists to “TRY TO AT LEAST PARTIALLY provide families who have lost their breadwinner OR HOMEMAKER with AT LEAST SOME means to support themselves.”

    I say, buy life insurance–guaranteed to pay if c”v the unimaginable happens. Even if you can’t afford the optimal amount your family would need, better to buy what you CAN afford, rather than no life insurance at all. This is far superior to relying on an admittedly shaky proposition such as Areivim.

    If you have surplus funds and/or unspoken-for tzedakah to give, only THEN consider something like Areivim. (But then, stick to any tzedakah commitment you make to Areivim, or else very vulnerable people stand to lose out!)

    As for the shluchim, why doesn’t Merkos seek out a donor to buy term life insurance (or even whole life, if possible) for all of the shlichus couples–policies on both the husbands and the wives? That seems at least as important as many of the other expenditures that have been made by Merkos on behalf of the shluchim, eh? (Not to criticize anything that Merkos does, believe me! This is just an added wise goal for them to seek to accomplish on behalf of the shluchim.)

  • Clearheaded

    The author of this article (and most of the comments here) is disingenuous to say the least. Areivim USA or whatever they change their name to next week is an organization to stay far away from. Dozens of questions were raised about their viability and business model but instead of answering the questions they went into hiding. Newsflash- changing your business name does not make the questions go away. Any inyelligent human being can see that Arevim USA is equally subject to the questions posed by Rabbi Horowitz and others.

    And as far as transparency goes, there is none. Who runs it? Where is their Guidestar report? How many claims have they had and how many were denied? Who is making the long term projections to ensure they will last? Very sad that so many are easy prey for these “trust me” organizations that have no accountability.

    • they actually published these reports

      there were flyers in shul with the amount of claims they had the past five years and which communities they were from (sorry they didnt say how many were claims denied)
      they also said who oversaw the funds
      i hope this changed your mind about this wonderful organization