Royal Neighbors Life Insurance Review
An Indepth Review of Royal Neighbors Life Insurance Company
Financial planning is an essential requirement for every individual in life, and life insurance plays a fundamental part in that. Everyone wants to have financial freedom when they retire and wants to protect their family and loved ones from any financial burdens. That is where coverage from a good life insurance policy can make a huge difference, since it guarantees financial relief for the survivors. One of the hardest things to do is buy life insurance policies, because there are thousands of different options. This makes it incredibly overwhelming to choose a life insurance company to work with.
Fortunately for you, we are in the business of reviewing the best life insurance companies currently operating in the United States. We comprehensively review the products, financial strength, customer ratings, and business history of the insurance company. This allows individuals to make informed decisions and carefully compare insurance policies to get the best ones for themselves. Our focus today is on Royal Neighbors Life Insurance Company, which is a unique insurance carrier. It is run and operated primarily by women, and the good news is that the insurance company has been working towards improving the financial lives of women across the United States.
So, if you are looking for life insurance products from Royal Neighbors Life, you have come to the right place. Check out our complete review of this insurance carrier below.
Founded in 1895, in Council Bluffs by a group of women, Royal Neighbors of America was created to be a fraternal benefit society that worked for children and women. The company was among the first to sell life insurance policies in the market to women and children. The name was selected to represent the idea of nobility for helping your neighbors.
Royal Neighbors Life built a new home office in 1927, on Rock Island, Illinois, and strongly supported the Women’s Suffrage movement. The company became increasingly popular and, in a few decades, managed to grow their membership significantly. The company then established multiple scholarship programs and charitable programs for members. This is a membership benefit that is still offered to members today.
The Royal Neighbors Life membership can be availed in two different methods:
- Paying a $20 annual fee
- Buying a Royal Neighbors Life product
Other membership benefits of the company include access to scholarships and member relief funds, and various discounted services. Members don’t have any requirements for applications as well. The headquarters of Royal Neighbors is in Rock Island, Illinois, and the company operates 300 chapters all over the United States.
Royal Neighbors Life insurance company has grown by leaps and bounds ever since it got into the insurance industry. The company has always had exceptional financial foundations, which allowed it to grow and expand quickly. The company currently manages assets worth more than a $1 billion and have over $200 million surplus. Royal Neighbors Life isn’t like other insurance companies, because it has a unique mission, which is to help serve communities, support women, and insure lives.
The insurance carrier is run like a fraternal benefit society, and therefore offers financial protection, promotes community service, and reaffirms their goal of neighbors helping neighbors. The head office of the company is in Rock Island, Illinois, but there is also a branch office in Mesa, Arizona. Royal Neighbors offers an extensive selection of annuity and life insurance products, designed to help customers grow and project wealth, while also ensuring the financial future of their loved ones.
The company actively participates in community projects and is also involved in volunteerism. Royal Neighbors has a special program, known as the ‘Nation of Neighbors Program’, which is designed to offer financial help to people who are planning to start a business or expand their business operations, group, or organization. They offer $100,000 in grant money, which is distributed through the Nation of Neighbors Program. The company has awarded more than $2 million in grants to recipients, since the inception of the program in 2007, which clearly shows their commitment levels.
Financial Stability and Customer Service Ratings
Any good life insurance company must have outstanding financial stability and customer service ratings, and the good news is that Royal Neighbors Life has good ones. The insurance company has solid ratings when it comes to financial strength, customer service, and paying out claims to policyholders. The company is also BBB accredited, and is among a select few life insurance companies that have been awarded an ‘A’ grade and are currently operating in the United States.
The insurance carrier has a stellar record in the industry and has been given an “A–“ rating from A.M. Best, which is among the 4-major independent insurance carrier ratings agencies in the United States. The ratings given to Royal Neighbors Life Insurance Company are:
- M. Best rating — “A –, Excellent”
- Standard & Poor’s rating — “N/A”
- Fitch – “N/A”
- Moody’s – “N/A”
If you were looking for a company with a solid financial background, and great record in paying out claims to policyholders, you will struggle to find an insurance carrier more committed than Royal Neighbors Life Insurance company.
Royal Neighbors Life Insurance Products
One of the major strengths of Royal Neighbors Life is their extensive range of insurance products, which are designed to accommodate the needs of individuals in the United States. Here are the types of insurance policies that the insurance carrier offers in their products:
- Term Life
- Universal Life
- Whole Life
Royal Neighbors has excellent insurance products that are designed to benefit young consumers, those with a budding family, or even people looking for end of life solutions for paying final expenses and leverage assets.
Ø Term Life Insurance
Royal Neighbors offers a basic term life insurance policy, which is extremely affordable. It is also easy to get an add-on for an existing policy, and the standard term life policy with a level death benefit and level premium is ideal for anyone looking for coverage. There are also different riders that can be added to the policy, and these include:
- Disability Waiver
- Accidental Death
- Guaranteed Insurability
- Accelerated Death Benefit
- Children’s Rider
- Cancer Waiver
The most unique rider out of all the above mentioned is the Guaranteed Insurability rider, which allows individuals to purchase increments of $25,000 or more in coverage for use later in life. The best part is that it can be availed without a medical exam and no questions asked. There are other insurance companies that offer the same rider for their whole life insurance policy, but not for term life.
Ø Universal Life Insurance
One of the most popular permanent life insurance product offered by Royal Neighbors is the SecureLife universal life product. It is designed to offer a cost-effective method for acquiring permanent coverage for the rest of an individual’s life. Policyholders have the option to choose level premiums for growing cash and keeping the policy in force. They can also change premium payments later when they are better off financially.
The only downside of the SecureLife product is that is the 20-year no lapse guarantee. It may sound amazing, but it is an extremely small guarantee, and other companies offer more. There is also a 2% minimum crediting rate that doesn’t compare well with other insurance carriers.
Ø Whole Life Insurance
Royal Neighbors Life offers you an extensive range of options in their whole life insurance products. There are multiple choices, which include:
- The traditional whole life
- The simplified issue whole life
- The single premium whole life
One of the best parts about these whole life insurance products is that they offer individuals with the benefits of whole life, which include:
- Multiple payment options
- Level premiums
- Permanent coverage
- Cash value growth
Policyholders can choose to pay lower level premiums for the rest of their lives, pay only till age 65, and even choose to complete payments in 20 years. Individuals can also qualify for whole life insurance without a medical exam for the simplified level product, and a graded product that covers all final expenses, without dealing with the typical hassles of examination requirements.
The maximum available death benefit for the whole life insurance policies is $25,000, and the payout won’t be immediate, but this depends on the chosen product. Royal Neighbors also offer single premium whole life insurance for applicants, who want to pay their entire premium upfront, to take advantage of their current cash, which will increase greatly in value in the future. This is an excellent option for the insured, because it allows them to pass their estate and get tax benefits as well.
Some of the whole life insurance policies you can buy from Royal Neighbors Life include:
· Youth Whole Life
The Youth Whole Life insurance product, works extremely well with a guaranteed insurability rider, especially for parents who want to acquire life insurance for their children. The rider guarantees additional coverage for special occasions or at difference ages, like marriage or birth of a child.
· Simplified Issue Whole Life
Royal Neighbors provides final expense whole life insurance to individuals to cover their end-of-life costs, which include getting your estate in order, paying off existing debts, and costs of the funeral.
· Single Premium Whole Life
Individuals who are looking for lifelong insurance coverage, can choose the single premium whole life insurance product from Royal Neighbors. It guarantees coverage for life, and you don’t have to worry about making lifelong payments as well. You can pay the entire amount up-front and get a life insurance policy with a guaranteed death benefit.
Other Products Offered
Royal Neighbors Life is also renowned for their retirement annuity products. These are designed to offer a great way to grow and compound money in a manner that is tax advantageous, and ensures you have additional income in the future. This ensures you have money that lasts an entire lifetime, irrespective of the type of lifestyle you live, or how you manage to live. The fixed annuity options offered are:
Ø Flexible Premium Deferred Annuity
The flexible premium deferred annuity is a great product that lets individuals contribute to the account over time. The funds will be growing tax deferred, which means you don’t have to pay any taxes on the money until you withdraw it. When you retire, you can select how you want to withdraw the money, and there is a lifetime income option as well.
Ø Single Premium Deferred Annuity
The single premium deferred annuity product lets you deposit a lump sum of money into the annuity, which will grow and compound on a tax deferred basis. You can choose to withdraw funds as an income stream later in the future.
Ø Single Premium Immediate Annuity
The single premium immediate product lets you deposit a lump sum amount from a retirement account like a 401(k) plan or an IRA, or from your personal account. You will then start receiving the funds as an income stream immediately.
The Bottom Line
There are a lot of great insurance companies in the market, and Royal Neighbors of America is among the most trustworthy, long-standing, and financially stable organizations. The unique structure of the company helps them place more focus on clients, which has allowed them to grow quickly. The company recently introduced affordable term insurance policies to meet the demands of consumers and families.
As always, check and compare insurance policies before buying them. We will recommend Royal Neighbors Life to anyone looking for affordable life insurance policies.