Providing our members with the peace of mind that “AFBA will be here when you need us” is our highest priority. We are proud to report that AFBA continues to thrive. Despite our nation’s economic turmoil, AFBA remains financially sound. Our membership of 345,000 continues to benefit from $37 billion of life insurance coverage.
The Importance of Life Insurance
Life insurance is critical in your family’s financial portfolio because it helps protect their economic future. It is not dependent on the ups and downs of the economy. Term life insurance products have traditionally been the most popular form of coverage, but the current trend in the insurance industry is moving towards permanent life policies with guarantees. AFBA is updating our whole life product to meet this need. We’re also working to expand our popular Select Term product to include 25 and 30-year coverage for those looking for longer term insurance and coverage past age 70.
We Ask for Your Support
Please take a minute to think of a family member, friend or colleague who might benefit from AFBA’s low cost life insurance and any of AFBA’s other products. Satisfied customers are our best source for new members.
We are just a click away on www.afba.com.
Serving You Better
By unanimous consent of the AFBA Board, spouses and dependants over the age of 18 now qualify for membership in AFBA. As such they have the right to vote for the AFBA Board of Directors either with the enclosed ballot card or online at
www.afba.com.
Serving our members is our focus. This year we completely renovated the AFBA website to better meet the needs of our membership. We work constantly to enhance our site and to allow you greater access to your account information as well as details on our updated products and member benefits. We also continue to upgrade our policy administration systems to provide you with more timely and accurate service.
Alliances
AFBA continues to explore strategic alliances with like-minded organizations. This past year we worked closely with the
Federal Law Enforcement Officers Association (FLEOA) and
Armed Forces Insurance (AFI). If you are in Federal Law enforcement, please visit
www.fleoa.org to see what they can do for you. Our members now have access to a wide variety of AFI insurance products, including automobile, home owners, personal property, flood, renters, specialty, and umbrella insurance. We are also exploring an alliance to provide a new member benefit with a web-based service which will help you
organize your important documents securely online.
In keeping with our commitment to provide outstanding products and services, AFBA is pleased to announce that it has entered into a strategic relationship with The FBR Funds to enable the AFBA 5Star Funds to become part of FBR’s highly-regarded mutual fund family. As a result, AFBA members will have access to a greater selection of investment offerings with lower associated costs. Furthermore, FBR is an organization that shares our passion for serving the needs of members and customers.
Our Leadership
The oversight and governance provided by our Board of Directors set the standard for organizations like ours. Our Board is diverse in experience and opinions, which in turn allows us to best serve you. Please check out their bios on our web site at
www.afba.com and cast your vote.
Sincerely,
Ralph E. “Ed” Eberhart
General, USAF (Ret.)
Chairman & President
If you or your spouse are ready to retire or separate from the military, take a close look at our Select Term product. Many AFBA members on active duty, National Guard, and Reserve hold our Better Alternative product. While this is a good value, once you retire or separate there are built-in rate increases. For this reason Select Term usually offers you and your family a better choice.
Even if you hold a life insurance policy, such as SGLI, you may be at a stage in life where Select Term can help. If you are preparing to buy a home, have a baby, or send a child to college, you want to be sure that your family is covered in the event of a loss. AFBA’s Select Term allows coverage amounts up to $500,000 and stays with you after you retire or separate.
Select a 10, 15, or 20 year level contribution policy with contributions that are guaranteed to remain level throughout the selected period. We will soon offer 25 and 30 year policies with guaranteed contributions for 10 years. (After 10 years, your contribution is projected to remain the same.) You select the level of coverage and term that best fit your needs. AFBA offers four different pricing classes depending on your health.
Holding Select Term through AFBA entitles you to several member benefits. An emergency death benefit of up to $15,000 will be mailed to your family within 24 hours of notice and in some cases your dependents may qualify for the Charles C. Blanton AFBA Family Survivor College Scholarship.
If you want more information regarding Select Term insurance, please visit AFBA’s web site at
www.afba.com or call
1-800-776-2322.
Master pol. # LT050197(Rev)
Please consider the AFBA alternative to Option B of FEGLI
As a Federal employee, you are probably covered by Basic life insurance under FEGLI and your payroll office deducts premiums from your paycheck unless you waived the coverage. You pay 2/3 of the premium while the government picks up the other 1/3. Good deal! But there is more to discover. Here is an overview of the FEGLI program:
Basic coverage amount: Your annual salary rounded up to the next $1,000 plus $2,000.
Once enrolled in the Basic insurance program, you have a choice of three types of Optional insurance – you pay the full cost of any optional insurance:
- Option A (standard optional insurance) – fixed $10,000 of coverage – reasonable cost
- Option B (additional optional insurance) – very expensive over time
- Option C (family insurance) – reasonable cost
We suggest, based on your family situation, that Basic coverage and Options A & C of FEGLI should be maintained as part of your overall life insurance program regardless of any other life insurance you may have.
However, because of the relatively high cost of Option B, and the fact that it increases every 5 years, it is to your advantage to consider other options, such as
AFBA’s select term life insurance. In fact, a civil service employee with no significant health issues and who doesn’t use tobacco products can typically
save from $20,000 to as much as $50,000 over the life of the policy when comparing the FEGLI Option B to our Select Term program.
At AFBA, we can provide you with a personalized analysis of your FEGLI program along with a comparison of the amount of savings you may qualify for by using our Select Term program as an alternative to the FEGLI Option B. If you are healthy, don’t use any tobacco products, and are between the ages of 45 and 65, we encourage you to request this analysis. Call 1-800-776-2322.
If you or any of your friends are a DoD Contractor, AFBA life insurance, underwritten by 5Star Life Insurance Company, is worth looking into.
You are covered 24/7 with none of the traditional war, terrorism or job restrictions—and it is very competitively priced. Coverage can be supplemental to your existing group insurance plan or 5Star Life can underwrite a group employee benefit program. These options are uniquely suited for DoD Contractors. Please call us at
1-800-776-2322 or visit our website at
www.afba.com for more information.
We rely on you, our members, to tell your friends, family and coworkers about AFBA life insurance. We have products for active duty, National Guard, Reserve, first responders, DoD contractors, Federal employees, and homeland defense personnel.
Please mention our low rates and the fact that we have no war or terrorism clauses. Additionally, our emergency death benefit of $15,000 is paid within 24 hours of notification and if the servicemember is killed in a combat zone or a first responder is killed at the scene of an incident, the Charles C. Blanton AFBA Family Survivor College Scholarship will provide up to $40,000 per family for college scholarships. All these features make our life insurance a logical choice to recommend to someone who may have to go in harm’s way. Please ask them to call
1-800-776-2322 or visit our web site at
www.afba.com.
Below are some of the letters of appreciation sent to our Claims Department, overseen by Rob Mendelson. Names are withheld for confidentiality.
“Thank you very much, Rob, for your quick response and your service.”
- LtCol, USAF (Ret.) on the death claim for his wife.
“I wish to thank you and the Armed Forces Benefit Association for your prompt and efficient processing of the death insurance claim for my husband. Also, your kind words of condolence are greatly appreciated. My family and I are still having a hard time accepting the loss...but every prayer from you and others are heartfelt by us. Once again, thank you and your wonderful Association so very much for everything. Take care and may God bless you.”
- Spouse of a military member.
“Thank you for your condolences and sympathies on the death of my husband. The [emergency death benefit] was appreciated, especially as quickly as it arrived.”
- Spouse of a military member.
“I just wanted to write and express my genuine appreciation for the courtesy and help shown to me when I contacted AFBA following the death of my daughter, and the very quick payment of the dependent benefits. I don’t know how often you receive a “thank you” note, but please know my wife and I genuinely appreciate the very quick, courteous, professional service. The actions of AFBA far exceeded my expectations, and were very reassuring for my wife. I am very pleased to be a member of AFBA.”
-LTC, Army (Ret.) on the death claim for his daughter.
5Star Credit Card Rewards Program
Our Rewards Program continues to grow with more great options.
With My5StarRewards you earn one point for every $1 in goods and services you purchase with your 5Star credit card. Enjoy a choice of today’s most coveted rewards including:
- Free round-trip airline travel (Domestic and International)
- Cash back
- Popular gift cards
- Brand name merchandise
- Vacation Getaways
We know you have many credit card choices, but My5StarRewards gives you more:
- No blackout dates for air travel rewards
- No limit on the number of points you can earn monthly or annually
- No annual program fee
- Hundreds of quality merchandise reward options
- Popular gift cards, over 30 national merchant options for dining, shopping, and entertainment
- Flexibility—choose a free gift card reward one time and cash back the next
It’s easy to use. If you are a current 5Star Bank cardholder you are automatically enrolled. Please visit
www.My5StarRewards.com or call
1-866-903-9594 to check your points balance, review rewards options, and place an order. Representatives can assist you 24 hours a day, 7 days a week.
If you are not a cardholder, APPLY TODAY at
www.afba.com or call us at
1-800-669-6328 to request an application.
AFBA 5Star Funds are now part of The FBR Funds
Effective March 12, 2010, the AFBA 5Star Funds became part of The FBR Funds. As a result, AFBA members now have access to 11 mutual funds, each with its own investment objective, to consider for their investment portfolio. Members will continue to enjoy the same high-quality investment selections with no upfront sales charge within The FBR Funds.
For planning purposes, AFBA members who have invested in the AFBA 5Star Funds should expect to receive two tax statements for 2010 – one from The FBR Funds and a second from the AFBA 5Star Funds. AFBA will send out a reminder notice to shareholders prior to the issuance of the two sets of 2010 tax statements.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. This and other information can be found in the Fund’s prospectus. To obtain a free prospectus please call 888.888.0025 or visit fbrfunds.com. Please read the prospectus carefully before investing. The FBR Funds are distributed by FBR Investment Services, Inc., member FINRA/SIPC.
By unanimous consent of the AFBA Board, spouses and dependants over the age of 18 with AFBA life insurance are now full members of AFBA. As such they have the right to vote for the AFBA Board of Directors by signing in at
www.afba.com.
Estate Tax – An Unexpected Payment to Uncle Sam
In 2001, Congress scheduled the Federal estate tax for repeal in 2010. It is 2010—time to celebrate? Not necessarily because there may be unintended consequences facing families. This temporary repeal could mean existing wills and trusts do not provide for families as desired when documents were signed. Families face significant pitfalls in 2011 too.
Next year, the Federal exemption amount is $1.0mm, a decrease from the $3.5mm exemption (2009). Many families do not understand what is included in an estate and believe, erroneously, that they are not affected by this tax. The consequence, however, may mean an unexpected payment to Uncle Sam.
Now, more than ever, members need a trusted resource to turn to which is why AFBA provides access to financial planning services as a benefit of membership. We’ve taken steps to ensure members have sponsored access to unbiased, personalized, fee-based financial planning services that can be leveraged locally – regardless of where our members live in the United States. Please call 1-800-776-2322 for a complimentary initial consultation and discounted financial planning services.
Joining Forces
AFBA is celebrating our first year of joining forces with Armed Forces Insurance of Fort Leavenworth, Kansas to offer home, renters, auto, personal property, and umbrella insurance to our military members. Armed Forces Insurance is a member owned company whose roots go back to 1887. A number of AFBA members have already purchased products from AFI as a result of this alliance.
Establishing a relationship with Armed Forces Insurance provides a benefit to a majority of our members by providing access to a broader product selection with a company that shares a similar service culture and military focus.
Armed Forces Insurance provides insurance coverage for all active, retired, separated, National Guard and reserve military personnel. They also insure active and retired employees of the Department of Defense.
Products available through Armed Forces Insurance include home owners, renters, personal property and personal liability (umbrella) products in all 50 states including Washington, DC. Auto insurance is also available in most states.
For more information, call us at 1-800-776-2322.
“First Call”—Excellent Service for Military Families
Military retirees are living longer than ever. The time and distance from active service create an information gulf that your surviving spouse doesn’t have to cross alone.
“First Call” offers personalized survivor assistance such as settling military retired pay accounts, processing life insurance claims, initiating the military Survivor Benefit Plan annuity, arranging for social security benefits, processing benefits from the Department of Veterans Affairs, and explaining your VA burial entitlements.
This service is offered at a special discount to AFBA members. To obtain more information and an application, call us at 1-800-776-2322.
Long-Term Care: In Their Words
AFBA offers Long-Term Care insurance through John Hancock. Following are some real life testimonials on the value of John Hancock Long-Term Care Insurance:
“After the accident, I felt scared and lost, but when I contacted John Hancock, they were able to connect me to someone who really wanted to help me, someone who understood and was concerned. Because of this, I felt really comforted. I have lots of friends and relatives willing to come in and help, but I’d rather they just be my friends and come over to visit and watch a game with me rather than coming to do something for me. My long-term care insurance has been a godsend. I can’t imagine what the emotional and financial impact of this would have been like without it.”
- Rock Round, TX
“Buying long-term care insurance was probably one of the best decisions I ever made for myself. I’ve had two hip replacements and fell, leaving me with a damaged hip and pelvis. It was then that all the emotional stress began unfolding. Without long-term care insurance, I would have had to leave my home. Plus, there would have been serious implications with what my son could not have done with his life and career, if he felt he had to be there to take care of me. From my salesman to my benefit specialist, I felt like John Hancock was part of my team.”
- Wyckham, NJ
Contact us at 1-800-776-2264.
Long term care insurance is underwritten by John Hancock Life Insurance Company, Boston, Massachusetts 02117.
Charles C. Blanton AFBA Family Survivor College Scholarship Program
We are proud to offer the Charles C. Blanton AFBA Family Survivor College Scholarship. The scholarship is offered to the surviving spouse or children of an insured AFBA member who dies in a combat zone, as a result of combat action or whose life was lost as a result of acts of foreign or domestic terrorism. As of June 1, 2006, the surviving spouse and children of Law Enforcement, Firefighters and Emergency Medical Service providers who are AFBA members and die while involved in operations at the scene of an “incident”* are also eligible for this scholarship.
The scholarship provides an educational scholarship to candidates for an undergraduate degree of up to $10,000 per family, per year for a maximum benefit of $40,000 for tuition and fees.
*“Incident” is defined by AFBA as any event to which an Emergency Service Provider, that is, Law Enforcement, Firefighter or Emergency Medical Service provider, is dispatched or requires a “response” or action by them. Usually, these events involve situations where there is the “potential for loss of life.”
Life Line Screening
Our membership has responded very favorably to this benefit available through Life Line Screening, the nation’s largest provider of preventive health care screenings. Life Line Screening offers noninvasive, ultrasound screenings to identify the risk of stroke, vascular disease, and osteoporosis. This program also screens for blocked carotid arteries, abdominal aortic aneurysms, atrial fibrillation, and peripheral arterial disease.
Booking an appointment with Life Line Screening is easy. Simply go to
www.LifeLineScreening.com/afba or call
1-888-653-6190. The cost of the screening to AFBA members is only $129.
2010 Financial Planning & Benefits Guide
AFBA’s 2010 Financial Planning Guide (FPG) is a 100 page booklet complimentary to all AFBA members and their families. This valuable resource includes information on:
- The basic principles of financial planning
- Military pay, allowences, and retirement benefits
- Social Security and survivor benefits
- Veterans benefits
- Federal civilian employee benefits
Request a copy of the 2010 FPG by calling
1-800-776-2322. The guide may also be downloaded (in pdf form) from our web site at
www.afba.com.
Hertz #1 Gold Club
AFBA members can enroll in the Hertz #1 Gold Club for free. Just take the following steps:
Annual Members Meeting
We invite you to attend AFBA’s Annual Members Meeting. A short presentation on the state of AFBA will be held at 10 am on Thursday, May 20th. The meeting will be held at the AFBA Building, located at 909 N. Washington St., Alexandria, VA 22314. Light refreshments will be served.
Changing Your Beneficiary
Have you recently had a life change such as getting married or having a child? If so, please make sure you update the beneficiary of your life insurance. Also, it is important that we have the most current contact information (married name, address, telephone numbers) of your beneficiary so there is no delay in getting them the life insurance proceeds.
AFBA’s Customer Service Receives High Marks
We are happy to report that AFBA ranked well above average in a new benchmarking study. Some of our notable strengths from this report included the management of costs, agent utilization, outstanding service levels, and our Customer Service Department’s dedication to the AFBA mission by providing high quality service to AFBA members.
While we’re pleased to have received this outstanding score, we are not content to rest on our laurels. We’re committed to making improvements both in services and technology to make your interaction with us smooth and so that we can be as helpful as possible.
If you’ve called into the AFBA Customer Service Department recently, you may have received our Customer Satisfaction Survey. Thank you to those who have taken the time to complete it. This valuable feedback is needed in order to better serve you.