There are many reasons why it is essential to have life insurance.
One of the main reasons is that it provides financial security for your family in case something happens to you.
Life insurance can also provide psychological comfort.
Having life insurance means that you’re prepared for any situation and it gives peace of mind knowing that your family will be taken care of.
Whether you need protection or not, life insurance is an important consideration.
This article will discuss what life insurance is, we will move on then to review Royal Neighbors; one of life insurance providers, the different types of policies they offer, how it works, and what are its benefits for members and serniors.
What is Life Insurance?
Life insurance is a financial product that helps provide supplemental income if something happens to you.
There are many different types of life insurance policies available, but most are designed to make sure your loved ones are financially stable in the event of an untimely death.
Royal Neighbors Life Insurance Review
Royal Neighbors Life Insurance Company Background
Their official name is Royal Neighbors of America. Simply “Royal Neighbors” is what most people call them.
They are a nonprofit insurer, and began doing business over 120 years ago.
It began in 1888 when eight women responded to an ad for a social meeting.
t this time in history, women could not vote, own property, or own life insurance. In 1895, they officially founded Royal Neighbors.
The founding women set out to empower women, provide life insurance to women and children, and improve the lives of their families.
Today, Royal Neighbors is one of the largest women- led life insurers.
Royal Neighbors was actually one of the first insurers in America to insure women and children. Royal Neighbors has a sort of neighbor-helping-neighbor philanthropic mission.
Their chief ambition is to empower women and their families.
Royal Neighbors has a unique mission of insuring lives, supporting women, and serving communities.
The company is organized as a fraternal benefit society, so in addition to providing financial protection, it also promotes community service, and neighbor helping neighbor.
he company is headquartered in Rock Island, Illinois. Royal Neighbors of America also has a branch office in Mesa, Arizona.
Royal Neighbors Available Life Insurance Plans and Packages
Royal Neighbors of America provides a comprehensive list of life insurance policy options to choose from. These include:
Royal Neighbors Permanent Life Insurance
Royal Neighbors of America also offers many different forms of permanent life insurance coverage.
With a permanent life insurance policy, there is both death benefit protection, and a cash value builds up.
The cash that is in the cash value component of the policy is allowed to grow on a tax deferred basis, meaning that there is no tax due unless or until the policy holder withdraws the money.
The types of permanent life insurance products that are offered via Royal Neighbors include:
- Whole Life
- Youth Whole Life
- Single Premium Whole Life
- Simplified Whole Life
- Universal Life
Royal Neighbors Whole Life Insurance Policy
With a whole life insurance policy, the cash value will grow at a set rate that is determined by the insurance company.
As the name suggests, this type of coverage is aimed at covering a person for the whole of their life (if the premium is paid).
Royal Neighbors Youth Whole Life Insurance Policy
At Royal Neighbors, there is also a Youth Whole Life insurance plan available.
While nobody wants to ever think about it, unfortunately, unexpected events can and do occur – and if so, they can be devastating both emotionally and financially.
A youth whole life insurance policy can provide financial assurance, allowing family members one less thing to worry about at an already difficult time in their lives.
The Youth Whole Life insurance plan can also be continued as the child grows up – and because it is a permanent form of life insurance coverage, it will have a locked-in benefit that he or she can keep for the remainder of their life.
Royal Neighbors Single Whole Life Insurance Policy
The company also offers a single premium whole life insurance option.
Here, only one lump sum premium is required, and the policy is then considered to be paid up.
The funds that are in the cash value of a single premium policy are still allowed to grow on a tax advantaged basis, so the policy holder may either borrow against or withdraw funds from the policy if need be.
Royal Neighbors Simplified Whole Life Insurance Policy
With the Simplified Whole Life insurance, those who are between the ages of 50 and 85 may apply for coverage of between $5,000 and $25,000.
This plan does not require a medical examination to be taken to qualify for coverage.
Royal Neighbors Universal Life Insurance Policy
In addition to whole life insurance coverage, Royal Neighbors of America also has universal life insurance.
These plans provide death benefit protection and a cash value component, but they are considered to be more flexible, as the policy holder (within certain guidelines) may be able to change the frequency and the amount of the premium.
They may also be able to adjust the coverage amount to keep up with their changing needs.
The permanent life insurance policies that are offered by Royal Neighbors of American may also be eligible for individual riders that can help to customize the plans better.
These can include:
- Disability Waiter
- Accidental Death
- Accelerated Benefit
- Guaranteed Insurability
- Child Rider
- Cancer waiver rider
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Royal Neighbors Term Life Insurance
With term life insurance, there is death benefit only protection, without any cash value build up.
Because of that, these types of policies are usually quite affordable – and they can allow those who need life insurance to protect those they care about, even if they don’t have a large budget.
Term life insurance is purchased for a certain number of years, during which time the amount of the coverage, and the premium due, remain the same.
This type of coverage can be a good option for those who are wanting to cover “temporary” needs, such as the payoff of a mortgage balance.
Royal Neighbors Insurance Company provides fully underwritten term life insurance policies, as well as its JETerm product, which is available to those who want a quick decision and fast coverage.
This particular policy is available to applicants who are between the ages of 18 and 60, with coverage amounts up to $500,000 (or $250,000 depending on the individual’s age at the time of application).
Policy holders may be able to add some different riders to their term life insurance coverage from Royal Neighbors.
Other Products and Services Available By Royal Neighbors Life Insurance
In addition to life insurance coverage, Royal Neighbors of America offers retirement annuities.
These products provide a way to grow and compound money in a tax advantages manner, and to ensure that you have an income in the future that will last for your entire lifetime – regardless of how long that may be.
Royal Neighbors of America offers several different fixed annuity options, including:
- Flexible Premium Deferred Annuity
A flexible premium deferred annuity allows you to make regular contributions to the account over time. These funds can grow tax deferred, meaning that there is no tax due on the gain until the date of withdrawal.
- Single Premium Deferred Annuity
With a single premium deferred annuity, you can deposit just one lump sum of money into the annuity that can grow and compound on a tax deferred basis. You can then withdraw the funds as an income stream at a time in the future.
- Single Premium Immediate Annuity
With a single premium immediate annuity, you can deposit just one lump sum – either from personal savings, or from a retirement account such as an IRA or 401(k) plan – and then start to receive an income immediately (or within a short time after the annuity purchase).
Royal Neighbors Customer Reviews, Ratings and Claims
Royal Neighbors currently has a “A-” rating with A.M. Best. They have over 200,000 members, and have more than $2.7 billion in life insurance in force.
They currently have nearly $1 billion in assets under management. You can trust they will pay their claims when they are called upon.
Their excellent financial rating and their balanced investment portfolio ensure they can always pay their bills.
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Royal Neighbors Life Insurance PROS
- A.M. Best Rating: A
- BBB: A+
- Simple, Fast and Easy Coverage
- Competitive Pricing
- Additional Membership Perks
Royal Neighbors Life Insurance CONS
- Average Pricing
- No Online Quotes
- More robust term and universal life options are available
- Cheaper rates on certain products are available
Royal Neighbors of America is one of the best companies you can choose to work with, especially for final expense life insurance.
However, comparing rates with several life insurance carriers before deciding will give you a better chance to find the lowest rate and best policy.
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Royal Neighbors Life Insurance Frequently Asked Questions (F.A.Q)
- How much are Royal Neighbors life insurance rates?
Life insurance rates vary for each person. Therefore, your life insurance and annuity costs every month are based on your age, health, and the coverage amount you need.
- How does Royal Neighbors rate financially?
Another aspect you’ll want to consider is a company’s overall financial stability.
Esteemed rating services like A.M. Best deliver the most accurate financial ratings for insurance companies.
Royal Neighbors of America currently holds an A.M. Best rating of “A” (Excellent), indicating that it is above average in its financial stability.
According to the National Association of Insurance Commissioners (NAIC) National Complaint Index Report in 2020, Royal Neighbors of America had three overall complaints, and its complaint index score is 0.95.
The national average score for the index is one, so Royal Neighbors is slightly better than average.
A lower complaint index score means that few customers had issues with the company.
- Should I Opt For Royal Neighbors Life Insurance?
Royal Neighbors of America is likely to appeal to those who like the idea of being part of a membership society and value the benefits of membership higher than getting the best price on life insurance.
They do appear to have a good reputation, as well as a long history, and there are many membership perks.
So, as long as they match your needs for life insurance, there is no reason why you shouldn’t choose Royal Neighbors of America.
They have fantastic official ratings which means that your claim is in a position to be granted and any issues you have with the policy will get fixed quickly.
Plus, they offer a wide range of products depending on what you need.
Royal Neighbors Life Insurance Review – Final Thoughts
Having the right type of life insurance is important for your family if you pass away suddenly.
Life insurance can help cover the cost of burial, final expenses, and other costs that you leave behind.
If someone dies suddenly, they may not have had enough time to plan for their burial or final expenses.
Life insurance is a way to ensure your loved ones are taken care of if something were to happen to you.
It is expected that most people will need life insurance at some point in their lives and getting the right coverage for you and your family can be a daunting task.
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It is hard to know where to start, but Royal Neighbors has some excellent features to help you figure out what type of plan fits your needs the best.
Royal Neighbors is committed to providing an excellent customer experience from making a sale to servicing the policy.