President's Call
Serving Our Members
Our mission at AFBA is to promote the welfare of our members and their families and to safeguard their economic interests. To that end, we are always seeking new ways to extend AFBA’s services and member benefits. Several years ago, we expanded our membership to include those who serve this great nation as federal, state or municipal government workers. We recently signed an alliance with the Federal Law Enforcement Officers Association (FLEOA). FLEOA is the largest nonpartisan, professional association, representing exclusively federal law enforcement officers from over 65 different federal law enforcement agencies. The greater our membership, the stronger our Association is and the better we are able to meet your financial needs.
AFBA is also proud to extend to our members the ability to purchase auto and homeowner’s insurance through our alliance with Armed Forces Insurance. Likewise, AFI members are eligible to purchase AFBA life insurance and, by doing so, become members of AFBA.
AFBA is always working to improve the level of our customer service. Our newest technological advance is a paperless application for life insurance. We can now guide you through a convenient e-application that will make applying for life insurance quicker and more convenient for you.
Serving Those Who Serve This Great Nation
We encourage you to contact us with any questions you may have. You can reach our customer service department at 1-800-776-2322 or e-mail me directly at GeneralEberhart@afba.com. Since 1947, AFBA has served those who serve this great nation, and we look forward to helping you in the months and years to come. Thank you for your membership.
Sincerely,
General Ralph E. “Ed” Eberhart, USAF (Ret.)
President & Chairman
Return to top
AFBA NEWS
AFBA Alliance with FLEOA
AFBA has signed an agreement to offer its variety of life insurance products to members of the Federal Law Enforcement Officers Association. FLEOA represents Federal law personnel including FBI, CIA, Customs and Border Patrol, IRS, TIGTA, INS, and more. If you work for one of these federal organizations, not only are you eligible for AFBA-sponsored life insurance, but you could also become a member of FLEOA. FLEOA provides a legislative voice for the federal law enforcement community. FLEOA monitors legislative issues that may impact federal law enforcement officers, and encourages its membership to contact their elected officials to express their concerns. Click here to visit and read up on the benefits of becoming a FLEOA member.
All federal law enforcement employees, their spouses and dependents are eligible for this coverage. With a simplified application, no war or area restrictions, and coverage on or off duty, it’s easy to protect your family. If you or someone you know works for federal law enforcement, please forward this email or a link to the newsletter webpage.
Return to top
AFI Auto, Home, & Property Insurance
Products made available to AFBA members through the alliance with Armed Forces Insurance include auto, 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. To sign up today, call AFBA at 1-800-776-2322.
For more than 120 years, Armed Forces Insurance (AFI) has been providing premium quality, competitively-priced property and casualty insurance for military personnel and Department of Defense employees throughout the United States and overseas. Headquartered in Leavenworth, Kansas, AFI creates a rewarding customer service experience while providing members with peace of mind and protection from fortuitous loss. For more information, visit www.afi.org.
INSURANCE
What is Select Term?
Select Term is a guaranteed level term life insurance product providing a level death benefit at a fixed premium for a specified period of time, e.g. 10, 15, or 20 years. After expiration of the term period, you can reapply for another fixed term, if medically qualified and within the issue age limits.
Who Should Buy Select Term?
A person seeking life insurance protection with a level premium for a specified period of time to cover expenses in the event of their death should consider Select Term. Such expenses might include paying off a mortgage, providing for your children’s education, or income for your spouse. Some factors you should consider before making decisions as to which product to select are:
• What and who do you need the insurance coverage for?
• What can you afford to pay in contributions?
• How long do you need the coverage?
Depending on the term selected and the applicant’s age and risk class, Select Term is especially a good value for individuals over age 40 looking for a level contribution with a lower total cost over the long term.
Sample monthly contribution: A 45-year old male who qualifies for our preferred class, for 20 years of $100,000 of coverage carries a monthly contribution of $22.01.
5Star Life Insurance Company now offers an Ultra-Preferred pricing class. If you meet certain medical eligibility standards, this pricing class offers the lowest monthly contributions yet.
Customer service representatives are available at 1-800-776-2322 from 8 a.m. – 5:30 p.m. Eastern Standard Time, Monday through Friday, to answer any questions you might have.
AFBA life insurance products, underwritten by 5Star Life Insurance Company, are especially attractive because they are aimed specifically at the military population and other qualified government groups with potentially high-risk occupations:
• There are no war or terrorism exclusion clauses.
• There are no occupational and area restrictions.
• Select Term is completely portable — it stays with you after retiring or separating from the military.
AFBA’s New E-App
You can now call in to AFBA’s Customer Service (1-800-776-2322) and complete a life insurance application without any paperwork! AFBA’s Customer Service Representatives can complete an application for our Better Alternative, Select Term, or Level Term products over the phone with you. This generally takes about 15 to 20 minutes. Following the call, our rep will send you an email with a link to a secure site where you can electronically sign the application – no paperwork!
Return to top
FINANCIAL PLANNING
Financial and Investment Corner
In an effort to keep our members informed about various investment topics and personal financial planning strategies, we would like to introduce the Financial and Investment Corner. In this issue, we discuss the importance of building cash reserves and using time to your advantage.
Building a Cash Safety Net
With national unemployment reaching levels not seen in decades, many financial experts have offered opinions on the right level of cash reserves to keep on hand to weather an unexpected event. While the amount for any individual will depend upon many factors, it is generally advised that 3 to 6 months of living expenses be accessible in cash or cash equivalents. Reserves should be kept in principal protected vehicles which may include money market funds, checking accounts, savings accounts, and CDs
Easily accessible cash enables a family to withstand short-term financial obligations such as paying rent or a mortgage, making car payments and general living expenses. Having cash available reduces the need to seek credit solutions at a difficult or uncertain time. Additionally, given the current credit climate, interest rates may be higher and available credit lines reduced.
Take matters into your own hands – start saving now to build your own safety net. You’ll soon develop peace of mind as your cash balances increase.
To speak with an AFBA service representative, please call 1-800-776-2322 or call 5Star Bank at 1-800-776-2265.
The Power of Compounding
An investor’s greatest ally is time. The head start you gain by investing early can help you reach future goals and generate wealth over the long term. With the right amount of time and patience, compounding can be a powerful force for your portfolio. In short, compounding is the ability of an asset to generate earnings, which when reinvested, generates even more earnings.
With enough time, short-term market swings can be “smoothed-out” and the power of compounding can provide significant benefits. For example, if an investor makes a monthly investment over the course of 10, 20, or even 30 years, the growth over time can be exceptional. Consider the following table which shows the value of investing early.
| Ending Value at 8% Average Annual Total Return |
| Monthly Contribution |
10 years |
20 years |
30 years |
| $100 |
$18,295 |
$58,902 |
$149,036 |
| $200 |
$36,589 |
$117,804 |
$298,072 |
| $500 |
$91,473 |
$294,510 |
$745,180 |
The lesson is clear – Start early and invest systematically. Don’t let short-term market conditions, both positive and negative, sway your long-term decisions. Stay focused on your long-term goals.
For more information on saving, click here to see our Life Cycle Insurance calculator.
Want to learn more about the power of compounding? Call an AFBA Investment Specialist at 1-800-243-9865.
Roth IRA Conversion News
When it comes to planning for the future, many members have two primary concerns – financial independence at retirement and transferring assets for future generations. An opportunity to address both issues occurs with a new federal tax law that goes into effect 2010. The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) will eliminate income limits on Roth IRA conversions. Here are some key points to consider:
• (TIPRA) eliminates the $100,000 income limit on Roth conversion beginning in 2010.
• There is no minimum or maximum amount that can be converted.
• The amount you convert in 2010 can be included as income in tax years 2011 and 2012.
• You may convert assets in traditional IRAs and qualified plans, such as 401(k)s or 403(b)s.
• If you change your mind about a conversion, you may undo it through a “recharacterization,” which returns the assets to a traditional IRA.
• Roth IRA owners are not subject to required minimum distributions (RMDs) and distributions are generally income tax-free.
• Distributions of Roth assets (principal and earnings) following conversion can be subject to taxes and penalties based on the owner’s age and how long the assets have been in the Roth.
• Reduced account balances mean lower conversion taxes.
• Tax rates are at historic lows.
Please call 1-800-243-9865 if you would like to discuss how Roth conversion rules may fit in your financial plan.
Financial Planning Advice
AFBA members have access to unbiased, personalized, fee-based financial planning services. The financial planning services cover retirement, investment, and estate planning and will help prioritize your goals and financial objectives.
Military families face unique challenges when transitioning from active duty status. After military duty, many members may have civilian careers spanning another ten to twenty years before fully retiring. Planning areas of concern include integrating or replacing military benefits with civilian benefits.
Please click here or call 1-800-243-9865 for a complimentary initial consultation and discounted financial planning services.
Return to top
BANKING
Your Accounts in 5Star Bank, an AFBA Related Enterprise, are Insured up to $250,000 (through 2013) with the FDIC
5Star Bank is one of the most well-capitalized Banks in the country with a Tier 1 Risk Based Capital Ratio of 25.03%. The average ratio of all banks in the U.S. is only 14.66%.
The 5Star Bank Freedom NOW Checking Account is one of the best deals you will find. Check out these features:
- Only $50.00 to open
- No account maintenance fees
- Interest earned on balances over $1,000
- Free Checkmate Visa debit card
- ATM Surcharge Rebates
- Use any ATM in the world and 5Star Bank will refund all ATM Surcharges (Average balance of $2,500 required)
- Online Banking
- Check your balances and transactions
- Free and unlimited online bill pay
- e-statements
- Transfer funds to and from other financial institutions
- Manage your spending and view your complete financial picture through Quicken’s Finance Works
5STAR BANK Launches the Health Savings Account
What is it?
A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment. HSAs were signed into law by President Bush on December 8, 2003.
Who Can Have an HSA?
Any adult can contribute to an HSA if they:
- Have coverage under a HSA-qualified “High Deductible Health Plan” (HDHP)
- Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or long term care insurance are permitted)
- Are not enrolled in Medicare
- Cannot be claimed as a dependent on someone else’s tax return
What are the advantages?
- Funds remain in the account from year to year, just like an IRA. There are no “use it or lose it” requirements for HSAs.
- An HSA provides you triple tax savings:
- Tax deduction when you contribute to your account;
- Tax-free earnings while the funds are in the HSA; and,
- Tax free withdrawals for qualified medical expenses.
Annual Contribution Limits For 2010
Individual - $3,050.00
Family - $6,150.00
Need more information about HSAs? Get started today! Contact a Customer Service Banker at 1-800-776-2265 ext 4352.
It’s Not the Disability; It’s the Ability
Nine months after losing both legs in a parachute accident, Dana became the first double amputee to re-enlist in the United States Army. Today, Dana spends his time inspiring school children, working with other amputees, and veterans with his story.
5Star Bank President /CEO Michael S. League, son Jake League, Hans Mueh, PhD, Athletic Director, United States Air Force Academy, Dana Bowman, and a member of the Wings of Blue (United States Air Force Academy Parachute Team) presenting game football to Dana Bowman, after his parachute jump into Falcon Stadium, Nov. 7, 2009. 5Star Bank was a proud sponsor of the Veterans Day actives in Colorado Springs, CO with the week’s activities concluding with Dana Bowman parachuting into INVESCO Field at Mile High for Monday night football, Nov. 9, 2009.
MEMBER BENEFITS
Long-Term Care
AFBA has been offering long-term care insurance through John Hancock since 1997 to all members of the Uniformed Military Services; Department of Defense, Department of Homeland Security and other Federal Government employees; Contractor Employees in support of the Uniformed Military Services; State and Local Employees (to include Police Officers, Firefighters and other First Responders); and their families.
Key Reasons for Purchasing a Plan Through AFBA:
- More Customized Policy Options
You can customize a plan to fit your specific needs and budget rather than settling for a prepackaged plan.
i.e.: You can elect either a Daily Benefit or Monthly Benefit.
(FLTCIP 2.0: Allows you to customize the benefits but fewer options are available)
- Available Discounts: Marital/Partner, Preferred Health, and Group Sponsored
Reduce your premium with a marital/partner discount, preferred health discount (as determined by the insurance company’s underwriting standards) and a group sponsored discount for all of our members.
- Enhanced Home Health Care Coverage
All policies offered will provide 100% of the facility daily/monthly benefit for home health care. You can also receive reimbursement for home modifications, durable medical equipment, caregiver training, home safety checks, care advisory services and many other benefits.
(FLTCIP 2.0: No discounts are available)
- Couples Can Share Benefits, Increase Flexibility and Save on Premium
A rider is available to combine policy benefits between spouses/partners. Couples can purchase two affordable policies and combine them into one large comprehensive plan. This rider also increases flexibility if one spouse/partner were to exhaust their benefits and still require care.
(FLTCIP 2.0: No rider to combine benefits is available)
- Individually Underwritten
Your premium is not based on one overall health classification. There are up to four different rate classes and your specific health will determine your rate.
(FLTCIP 2.0: One rate class is available. Abbreviated underwriting for newly eligible employees and their spouses, full underwriting for all others)
- Pay Premiums with Visa or MasterCard
Take advantage of bonus programs offered through your credit card company. NOTE: Credit card payments are available on certain payment modes.
(FLTCIP 2.0: Premiums can be paid bi-weekly or monthly through payroll or annuity deduction)
- Leadership
- John Hancock has been the # 1 LTCI carrier in the U.S. for two consecutive years;
- Has more than 1 million LTCI policyholders;
- Has paid more than $2.2 billion in LTCI claims paid;
- Average claimant age is 78.
For more information or to sign up, please call us at 1-800-776-2322.
“First Call” Survivor Assistance
Most of us prefer not to talk about our personal affairs planning or who will help our loved ones if something should happen to us. But, it is important to know who can help when that time comes and how your unique survivor’s benefits are provided to your eligible dependents. AFBA’s “First Call” member service does just that and more by offering 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. Lifetime assistance is provided to your surviving spouse at no additional cost. First Call members receive several other benefits including discounts at nationally recognized funeral homes and a memorial flag with a display case.
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 or click here to visit our First Call information page.
LifeLine Screening
Life Line Screening offers a wellness benefit for AFBA members—an exclusive discount on preventive health screenings for members and their families. AFBA feels strongly about the importance of prevention and its importance in healthcare, and we are pleased to make these potentially life-saving services available to our members.
There are several ways to make an appointment for a screening. Members, family members and friends may call 1-888-653-6190 to schedule a screening, or they can visit www.LifeLineScreening.com/AFBA to search for screenings in their area and schedule and appointment. Life Line Screening has a specially-priced Stroke, Vascular Disease and Heart Rhythm Package available for $129.
Life Line Screening, the nation’s leading provider of community based preventive health screenings, has offered live-saving tests since 1993. There are four screenings involving the use of ultrasound technology offered to help identify risk of stroke, vascular disease and osteoporosis. These convenient and comfortable screenings scan for potential health problems related to: blocked arteries, which can lead to a stroke; atrial fibrillation, which is an irregular heartbeat and can increase risk for stroke; abdominal aortic aneurysms, which can lead to a ruptured aorta; and hardening of the arteries in the legs, which is a strong predictor of heart disease. A simple screening may prevent death or disability.
Provided screenings will include:
Carotid Artery Screening – Painless, non-invasive Doppler ultrasound is used to visualize the carotid arteries, the arteries that bring blood to the brain. The majority of strokes are caused by plaque buildup in these arteries.
Atrial Fibrillation Screening – An ECG device is used to detect an irregular heartbeat, or AFIB. Adults over 40 have a 1 in 4 chance of developing AFIB in their lifetimes and risking a stroke.
Abdominal Aortic Aneurysm Screening – Ultrasound is used to visualize the abdominal aorta, the largest artery in the body, to measure the diameter of the aorta. This measurement can indicate if there is a weakening in the aortic wall which can cause a ballooning effect known as an aneurysm. A burst aneurysm generally is fatal.
Peripheral Arterial Disease Screening – PAD is also known as “hardening of the arteries,” a cardiovascular disease. Risk is evaluated through a measurement called the “Ankle-Brachial Index,” which is obtained by reading the systolic pressure in the ankle and arm.
AFBA members will be able to use Life Line Screening’s services within the comfort of their own communities, as Life Line Screening provides these screenings in all 48 continental states in the U.S. Life Line Screening is also committed to providing participants with the education and tools they need to stay on the cutting edge of prevention. The company has over 150 Health Service Coordinators in the field offering interactive educational seminars free to those interested in learning more about the importance of prevention in healthcare. Once a participant is screened, test results are sent within 21 days. Life Line Screening encourages participants to discuss these results with their physicians.
Hertz #1 Club Gold
AFBA is proud to introduce Hertz as its preferred car rental service. As an AFBA member you will receive discounts and benefits including:
- Discounts up to 20% on daily, weekly, and monthly rentals
- Unlimited mileage for most rentals
- Special offers and upgrades
- Fee-waived #1 Club Gold - a $60 savings*
Hertz also offers:
- 24-hour roadside emergency service
- NeverLost Satellite navigation system
- Sirius Satellite Radio
To make reservations visit www.hertz.com, call 1-800-654-3131 or contact your travel agent. Be sure to provide your AFBA Corporate Identification Number (CDP) of 1636830 in order to receive your discounts and benefits.
* To join the #1 Club Gold:
- Go to http://www2.hertz.com/goldcorp
- Enter the company name: Armed Forces Benefit Association
- Enter the CDP # (same as on the back of your member card): 1636830
- Enter the Promo Code #: 1315
Military Tours
Finally restored to operational readiness, the Wake Island tour will be 6-14 December 2009. The tour will commemorate the great American struggle that occurred there in December 1941.
Currently, over a hundred veterans, family members, military historians, educators and students have signed up with Military Tours to visit Wake Island. Admiral Ron Hays, USN (Ret) and Major General O. K. Steele, USMC (Ret) are the tour hosts and historians. John Powell and Gary Andrejak are the tour leaders who will guide guests around this historic WWII Island which has gone down in Navy and Marine Corps lore as one of the most significant battles of the War. Called "A Magnificent Fight", the Japanese invaders were totally surprised by the tenacity that a small garrison put up against overwhelming odds.
Military Tours has about eighteen (18) spaces remaining. Filling the remaining slots will be "First Come First Served! Check out the Wake Island Tour details at www.miltours.com and call us immediately if you're interested. There is a 15% discount extended to AFBA members while spaces last. Call 1-800-722-9501 or 1-703-590-1295.
AFBA Webstore
Please check out our AFBA webstore regularly. We’re always adding the best in high-quality apparel and goods branded with the AFBA logo at low prices. Show off your member status today.
Insurance, Banking and Investment products are offered by affiliates of 5Star Financial, LLC. Insurance underwritten by 5Star Life Insurance Company (Administrative Office - Alexandria, VA). Not available in all states. Banking products are FDIC insured; other investment and insurance products are not.
Return to top