As part of our ongoing review of life insurance companies, we are pleased to offer our company review of Royal Neighbors of America Life Insurance Company.
Our intention with these company reviews is to get as much information about each life insurance company to those who are currently shopping for life insurance.
Your insurance rates are certainly important but we believe that you should know a lot about the company you might do business with because a life insurance policy is a promise to pay and that promise must be kept for a lifetime.
Meet Royal Neighbors of America Life Insurance Company
Having been in business now for over 120 years, Royal Neighbors has an outstanding record for offering and delivering life insurance products to their members. The company operates as a non-profit and is a fraternal benefit society that serves its members and their communities.
Royal Neighbors was established by nine women way back in 1895 when women didn’t have voting rights, property rights, or even the ability to own life insurance. For these reasons, nine women joined together to fund and establish Royal Neighbors of America.
This insurance company, which is led by women, not only provides insurance and financial products to its membership, donated $20.5 million in financial support to the communities of its members.
Royal Neighbors Life Insurance, a Fraternal Benefit Society
A fraternal benefit society is a non-profit member-owned organization that offers financial and life insurance products to its members who have common religious, vocational or ethnic backgrounds.
Although the fraternal benefit society offers life insurance or other financial products to the public, each person who makes a purchase automatically becomes a member of the society and is entitled to the benefits it offers. Rather than sharing profits with stockholders, Royal Neighbors uses some of the money to benefit the communities of its membership.
Royal Neighbors of America Financial Stability
Naturally, when shopping for life insurance and other financial products, it’s critical that the consumer investigate the financial stability of the companies being considered.
The insurance ratings of each life insurance carrier provide an overall picture of the financial health of the company being rated and reveal whether or not the insurance company will be able to pay when claims are eventually filed by the policyholder.
Royal Neighbors of America’s financial overview for the end of 2023 is as follows:
- Over $1.2 billion in assets under management
- A premium surplus of 195 million dollars
- A rating (Excellent) from A.M. Best for financial strength and ability to pay claims and operating expenses.
Royal Neighbors of America Life Insurance Products
Although Royal Neighbors Life Insurance company offers insurance products and annuities, for this article we will focus our discussion on their life insurance products.
Term insurance is most affordable because it is considered temporary insurance coverage and most policyholders outlive their insurance coverage or convert their term insurance to permanent insurance like whole life and universal life. Royal Neighbors offers a free insurance calculator for prospective customers to calculate how much life insurance they actually need.
Universal life’s most unique feature is its flexibility which allows the policyholder to accommodate life changes. The policyholder can decrease the premium payment temporarily or even skip a payment if needed. A policyholder can also pay more premium when they want to speed up the cash value growth of the policy.
If life events warrant more or less insurance coverage, the flexibility in universal life provides for the insured to decrease or increase their insurance coverage. The cash value in the policy grows year after year resulting from a guaranteed interest rate specified in the policy contract and the interest credits can increase when the company’s investments perform favorably.
• A whole life insurance policy lasts for the insured’s lifetime and is non-cancellable except for non-payment of premiums by the policyholder.
• After a whole life insurance policy has been issued, the insurer cannot increase the premium even if the insured develops a terminal illness or must live in a nursing home. The periodic premiums will always remain level.
• Whole life insurance builds cash value over time because the insurance company guarantees a minimum interest rate in the policy contract.
• A policyholder can access the cash value in a policy using policy loans that do not have to be repaid. Any outstanding policy loan is simply deducted from the death benefit if an insured dies while a loan is outstanding. Royal Neighbors of America offers several whole life insurance products to accommodate various segments of the marketplace:
Royal Neighbors Youth Whole Life
A youth whole life insurance policy is a great solution for guaranteeing your children or grandchildren will have life insurance protection throughout their lifetime. By having a guaranteed insurability rider, your child or grandchild will have the ability to increase their insurance coverage later in life without worrying about medical issues interfering with increasing their insurance coverage.
Royal Neighbors Simplified Issue Whole Life
Royal Neighbors’ Simplified Issue whole life insurance is a great solution for seniors looking for final expense insurance at affordable prices. This product is available for applicants aged 50 to 85 and is available with face amounts of $5,000 to $25,000.
Seniors who are looking for affordable burial insurance will be happy to receive very affordable rates from a fraternal benefit insurance company that provides for the community as well as the individual.
Pros and Cons for Royal Neighbors Life Insurance
We have found over the years that Royal Neighbors of America Life Insurance company offers quality insurance and financial products at very competitive prices and they continually offer exceptional customer service and claims service to our clients. Here is our list of pros and cons.
Pros:
- Simple, fast, and easy coverage, making the application process more convenient.
- Competitive pricing compared to other life insurance options in the market.
- Additional membership perks may include benefits beyond the insurance coverage itself.
- Historical longevity and stability as an insurance provider, having been in operation for over a century.
- A focus on community and social benefits, such as scholarships and discount programs.
Cons:
- There are more robust term and universal life options available from other insurers.
- Comparable policies can be found at lower rates with other providers.
- Smaller company compared to other large life insurance providers
- Limited policy options may not meet all of your life insurance needs.
- Unique fraternal structure may not appeal to everyone, as some may prefer a more traditional insurance company..
Use the life insurance calculator on this page to see your rates.
