Today we’re going to do a Royal Neighbors of America burial insurance review. It is important to know the insurance company before buying a policy. Our review will focus on their burial insurance products, its benefits, and other information you need to know to help you decide if Royal Neighbors is right for you.
Royal Neighbors’ burial insurance includes simplified issue, graded death benefit, and single premium whole life. You can qualify for different plans based on your answers to the health questions on the application.
This article will provide you with complete information on what Royal Neighbors is all about to help you decide if they are the best fit for you.
ROYAL NEIGHBORS COMPANY BACKGROUND
Royal Neighbors of America was established in Council Bluff, Iowa in 1895 as a fraternal benefit society focused on women and children. The founding eight women were one of the first insurers in America to provide life insurance to women and children.
A fraternal benefits society is a legal structure that is different from a regular life insurance company.
The fraternal benefits society is defined as:
“A body corporate, without share capital, operating for the benefit of its members and not for profit, with a representative form of government including a lodge system, and that is incorporated for fraternal, benevolent, or religious purposes, including the provision of insurance or annuity benefits to its members, their spouses, children or beneficiaries.”
They have no shareholders. They only exist to provide benefits and support to their members. Since they are a nonprofit, any profits from their life insurance business go to their members in the form of benefits and support.
They operate 300 chapters across the country. Membership is available in two ways: 1. purchase a Royal Neighbor product 2. Pay a $20 per year annual fee. There are no requirements for the application. Member benefits include different discounted services and access to a member relief fund and scholarship.
Royal Neighbors currently have over 200,000 members, and they have more than $2.7 billion life insurance in force. They also have nearly $1 billion in assets. They are a stable company you can trust to pay your claim on time.
Royal Neighbors offers different life insurance and annuity products. In this article, we will be discussing more about their burial or final expense insurance products.
ROYAL NEIGHBORS FINANCIAL RATING
Looking at the financial rating of a company will tell you the overall health of a company, it’s financial stability, and the company’s ability to pay claims on time.
Financial stability is one of the most important factors an applicant should look because it will determine if your beneficiary will get your death benefit when you die.
Royal Neighbors has earned a high rating from different insurance rating agencies. A.M Best gives a rating of A- (Excellent) to the company due to its financial strength and its timely payment of claims. This is the 4th highest rating out of 15.
Also, Royal Neighbors has been accredited member of the Better Business Bureau since August 1, 1986. The BBB has given it a grade of A+ from the overall grading scale of A+ to F.
ROYAL NEIGHBORS BURIAL INSURANCE PRODUCTS
There are three Royal Neighbors burial insurance products such as simplified issue whole life, graded death benefit, and single premium whole life. Your health will determine which product you will qualify for.
SIMPLIFIED ISSUE WHOLE LIFE
Simplified issue whole life insurance with Royal Neighbors is available to people between the ages of 50 and 85. You may apply and choose from $5,000 to $25,000 death benefit. This plan does not require you to take a medical exam to qualify for coverage.
The underwriting for a simplified issue policy is liberal, and their premiums are some of the lowest available.
Royal Neighbors is accepting of many health issues. They are the most diabetic and diabetic complication friendly final expense company. Diabetics can qualify for a level death benefit or immediate coverage.
Healthier applicants can easily qualify for this plan. You must answer no to the entire health questions on the application to be approved for coverage.
Your prescription history and MIB report should show no indication that you are being treated for any conditions asked on the health questions.
Royal Neighbors Simplified Issue Whole Life Insurance Features:
Issue ages: 50-85
Face amount: $5,000 – $25,000
- No medical exam required
- Immediate death benefit from day one
- Coverage never expires at age 80
- Premium will remain fixed until the age of 121
- The death benefit will never decrease
- Available in all U. S. States except AL, AK, HI, LA, MA, NH, & NY
Royal Neighbors of America offers accelerated living benefit rider at no extra cost. This rider provides a single lump sum payment using a portion of the life insurance death benefit before the policyholder dies.
You can get up to 75% of your death benefit on the day Royal Neighbors receives your acceleration request. You can request a minimum of $5,000, and you can only make one acceleration.
GRADED DEATH BENEFIT WHOLE LIFE
If you have health issues and you cannot qualify for simplified issue whole life with no waiting period, a graded death benefit whole life is your best option. This plan has a limited payout during the first two years, but you will receive partial coverage from the first day.
The graded death benefit is designed for applicants who are not in the best of health. It only provides partial coverage in the first two years. If you die in the first year, your beneficiary will receive 30% of the death benefit, 70% on the second years, and 100% in the third year and beyond.
Royal Neighbors will pay out full death benefit amount during the first two years if the death is accidental (except in Arkansas).
Royal Neighbors Graded Death Benefit Whole Life Insurance Features:
Issue Age: 50-85
Face Amounts: $5,000-$10,000
- No medical exam necessary
- Coverage never expires
- Death benefit never decrease
- Fixed monthly premiums for life
- Limited benefits during the first two years
Graded death benefit payout schedule
- 30% first year
- 70% the second year
- 100% third year and beyond
This plan has a minimum face amount of $5,000 and a maximum death benefit of $10,000 if you qualify.
To qualify for a graded death benefit plan, you have to say no to all the “knockout” health questions.
If you answer yes to the graded health questions, you will still be approved for this plan. Even if your prescription history shows treatment for any of the graded health issues, the company will still approve of you for this plan.
SINGLE PREMIUM WHOLE LIFE
The Royal Legacy single premium burial insurance can be issued between the ages of 45 and 80. A lump sum payment of at least $10,000 is needed to purchase this plan. A guaranteed death benefit, which is higher than your premium, will be given to your beneficiaries when you pass away.
You can use the single premium whole life option if you want to pay the entire premium and leverage the current cash value for a higher value in the future. Your cash value can grow, which you can either borrow or withdraw funds from your policy. It can also help you pass your estate in a more tax advantageous way.
UNDERWRITING ROYAL NEIGHBORS OF AMERICA BURIAL INSURANCE
Part of Royal Neighbors of America’s underwriting process is asking health questions in the application. They will also check your prescription history and look at your Medical Information Bureau file.
One GREAT thing about Royal Neighbors is that they have no build chart. They will not ask about your height and weight ratio. You can be obese, and they don’t care about it.
Almost every other burial insurance company has a build chart, so Royal Neighbors is a great fit for you if you are a bit overweight.
The most important part of the application process is your answer to the health questions honestly.
The health questions have two sections:
- The knockout section
- The graded section.
If you answer “yes” to any of the questions in the knockout section, your application will be declined.
- Is the Proposed Insured currently hospitalized, receiving Hospice Care or in a nursing facility?
- Are you confined to a bed, wheelchair, or using oxygen equipment to assist in breathing?
- Has any member of the medical profession ever diagnosed or treated you for Acquired Immune Deficiency Syndrome (AIDS), AIDS-Related Complex (ARC), or an immune deficiency disease, or have you tested positive for the Human Immunodeficiency Virus (HIV)?
Have you been diagnosed as having or been treated for:
- Congestive heart failure, or had or been recommended to have an organ transplant?
- Insulin shock, diabetic coma, amputation caused by disease, or taken insulin shots before age 30?
During the past 18 months have you been diagnosed as having:
- Angina (chest pain), heart attack or failure, or heart surgery?
- Stroke, aneurysm, cardiomyopathy, or circulatory surgery?
During the past 24 months, have you been diagnosed as having, or been treated for:
- Internal Cancer, Melanoma, or Leukemia?
- Dementia, Alzheimer’s, mental incapacity?
- Cirrhosis, liver disease, chronic kidney disease, kidney failure (including dialysis) or systemic lupus?
During the past 18 months, have you been diagnosed as having:
- Any condition expected to result in death within 12 months?
- Been advised by a medical professional to have any diagnostic testing which has not been completed or for which the results have not been received?
- Have you been recommended by a physician to have treatment or counseling for alcohol or drug abuse?
If you answer “yes” to any of these questions, you do not qualify for Royal Neighbors burial insurance plans.
GRADED HEALTH QUESTIONS:
During the past 36 months, have you been diagnosed as having, or been treated for:
- Stroke, angina (chest pain), heart attack, or cardiomyopathy?
- Heart or circulatory surgery (including pacemaker, heart valve replacement, bypass, angioplasty, stent implant, or any procedure to improve circulation to the heart or brain)?
During the past 24 months, have you been diagnosed as having, or been treated for:
- Emphysema, chronic obstructive pulmonary disease (COPD), or tuberculosis (TB)?
- Neuromuscular disease (include Multiple Sclerosis, Lou Gehrig’s Disease, Epilepsy, or Parkinson’s Disease)?
PRESCRIPTION HISTORY CHECK
Royal Neighbors will electronically analyze your prescription history to check for prescription drugs you are taking to treat any of the health issues they ask.
Their prescription history check will validate your answers to the health questions and reveal what medical conditions you’ve been treating in the past.
Some prescription drugs are a red flag and can cause you to be declined for coverage. If you are taking any prescription meds for any health issues they care about, they may respond negatively to your application.
For example, if you say “no” to having AIDS, but you are taking anti-retroviral medication to control your condition, Royal Neighbors will offer you a plan consistent with someone who has AIDS and denies your application.
If you are on any of the diabetes medications and have any diabetes complication, don’t worry!
Many other companies will deny you coverage life insurance if you take any of the following diabetic medications:
However, Royal Neighbors will not. You will still be approved for coverage for first-day coverage if you take these medications for diabetes.
MEDICAL INFORMATION BUREAU (MIB) REPORT
MIB provides information about your previous life insurance application results. MIB reports are shared among insurance companies for review.
If you applied for life insurance in the last six months and you were denied coverage because of a medical issue, this information would be written in your MIB file which will be accessible to Royal Neighbors should you decide to apply to them in the future.
For example, if you inform the insurance company, you applied before that you have cancer. This information will be on your MIB report. If you answer the health questions that you don’t have breast cancer, your MIB report will override your answer to the health question, and your application may be denied.
ADVANTAGES OF ROYAL NEIGHBORS BURIAL INSURANCE
Most life insurance companies ask about diabetes and diabetes-related complications on their health question. If you have diabetes, most of them will decline your application, or they will charge you more and give you a waiting period.
One of the unique features of Royal Neighbors is that they are extremely diabetic friendly.
People with diabetes and weight problems can still qualify for coverage because Royal Neighbors do not have a built chart. You can be morbidly obese, and they don’t care about your weight.
There are other health conditions which are acceptable with Royal Neighbors:
- High cholesterol
- Blood Thinners
- High blood pressure
- All mental health issues
- Transient Ischemic Attack or mini-stroke
HOW TO GET THE BEST RATES
If you are looking to get burial insurance coverage from Royal Neighbors of America (or any insurance company) and you want to ensure that you get the lowest premium possible, we recommend that you work with an independent life insurance agency like Funeral Funds. That way, we can help you shop and compare companies, policies, and prices.
Funeral Funds is one of the select few agencies licensed to help you purchase their burial and life insurance products. When you are ready to purchase coverage, we can help.