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Monday, October 18, 2010

KYA Update: The Moving Ball

As you may recall, a Guest Post by an actuary titled "AREIVIM and Why I Don’t Like It" seemed to have set off an internet storm, which I attempted to follow. The last thing I knew, before the storm settled was that in addition to a few endorsements being pulled from the websites, the KYA director, whom I was very interested in hearing from directly, was a no show on Zev Brenner's Talkline. Since then, I hadn't seen anything on the program until I started getting my Rosh Hashana mail.

Seems the program has changed. Originally, the plan advertised a $100,000 fund to be set up for each orphan that meets certain qualifications. The $100K principal was advertised to remain in tact, and the interest can be used to defray day-to-day expenses. Those who join the plan were to be charged $6/7 (Vaad HaRabbonim, Kupat Hair) per qualifying orphan up to a maximum. The math is clearly problematic. While there are claims of professional review, none have been produced.

Currently, the Vaad HaRabbonim Rosh Hashana brochure advertised:

"Each member family contributes $2.30 through a one-time credit card charge or standing bank order, in the event that the child of a member family is orphaned. The immediately produces a $50,000 fun for the child. The interest helps to defray day-to-day expenses, while the principal serves for wedding expenses."

So, the fund is now being advertised in the brochure as half the size with a payment (per orphan?) of nearly on-third for a half-sized fund, while the website continues to advertise a $100,000 with a $6 per orphan charge.

Clearly, the ball is in constant motion. My readers know how I feel: buy term life insurance from a reputable company. You will know what you are getting. Clearly the directors of Vaad Rabbanim aren't quite clear on what they are even selling.

Signing off.

4 comments:

Abba's Rantings said...

you should include links to the earle orthonomics (and guest) posts on life insurance

Orthonomics said...

Push the "Life Insurance Tag" and everything will pull right up. I'd make some links, but I'm literally out the door for the day.

Insurance Man said...

too bad; I thought after the last round of knockdowns this thing was out for the count.

But it really makes me wonder how much money the guys who are running it are taking in, as to be so stubborn!

Anyway, I have no money for Areivim because I gave it all to Kupat Hair - but the seglauh did not work and I am still bald.

Anonymous said...

Evil is NEVER out for the count.. Sigh...