Royal Neighbors has earned a reputation for blending purpose with protection—offering life insurance built on community values rather than corporate profits. With a legacy of empowering women and supporting families for more than a century, the organization continues to stand out for its personal touch and member-focused benefits.
Let’s explore what makes Royal Neighbors unique—and whether its distinctive approach could be the right fit for your coverage needs.
What Makes Royal Neighbors Different?
Key insight: Royal Neighbors of America was founded in 1895 by nine pioneering women, making it one of the first insurance companies to provide life insurance coverage to women and children when most insurers considered them uninsurable. This revolutionary beginning shaped their mission that continues today: insuring lives, supporting women, and serving communities.
“Royal Neighbors operates on a unique ‘neighbor-helping-neighbor’ philosophy that extends far beyond traditional insurance. Our members aren’t just policyholders; they’re part of a movement that has contributed over $43 million in social good impact annually.”
– Industry Analysis Based on Royal Neighbors 2024 Report
Unlike traditional insurance companies, Royal Neighbors operates as a fraternal benefit society. This means you must become a member to purchase insurance, but membership comes with unique benefits:
- Community involvement opportunities: Access to local chapters and volunteer programs
- Educational support: Scholarships and grants for members pursuing higher education
- Women’s empowerment initiatives: $100,000 annually distributed through Nation of Neighbors grants
- Member discounts: Various benefits including medical and travel services
Bottom Line
Royal Neighbors isn’t just selling insurance – they’re offering membership in a community-focused organization with 130+ years of history supporting women and families.
How Strong Is Royal Neighbors Financially?
Key insight: Royal Neighbors has earned an “A Excellent” rating from AM Best, the third-highest rating out of 13 possible grades, reflecting strong financial stability and ability to meet obligations to policyholders. This rating was upgraded from A- in 2020 and affirmed in December 2024.
Royal Neighbors Financial Snapshot
| AM Best Rating | A (Excellent) – 3rd highest of 13 grades |
| Total Assets | Over $1.1 billion |
| Surplus | Nearly $195 million |
| Members Served | 265,000+ nationwide |
| BBB Rating | A+ (Accredited since 1986) |
In 2025, Royal Neighbors earned recognition as one of Forbes’ Best Insurance Companies, based on an independent survey of over 18,000 U.S. citizens evaluating factors like customer service, transparency, and claims handling.
Key Takeaways
- Solid financial foundation with improving performance trends
- Conservative financial management approach ensures stability
- Recent recognition from both AM Best and Forbes validates their approach
- Over 130 years of continuous operation demonstrates longevity
What Life Insurance Products Do They Offer?
Key insight: Royal Neighbors focuses on a targeted selection of life insurance products rather than trying to be everything to everyone. Their primary offerings include simplified issue whole life, term life insurance, universal life, and specialized final expense coverage designed specifically for seniors.
Simplified Issue Whole Life Insurance
This is Royal Neighbors’ flagship product, designed for individuals who want permanent coverage without medical exams:
- No medical exam required: Only health questions during application
- Immediate coverage: Death benefit starts immediately with no waiting period
- Level premiums: Payments remain the same throughout your life
- Cash value accumulation: Policy builds cash value you can borrow against
“Royal Neighbors stands out for accepting applicants with diabetes, obesity, and other health conditions that might disqualify them elsewhere. Their lenient underwriting makes them particularly valuable for individuals with pre-existing conditions.”
– InsuranceBrokers USA – Management Team
Final Expense Coverage
Royal Neighbors offers final expense policies specifically designed to cover funeral costs, which average nearly $9,000 for a basic funeral with burial. Features include:
- Coverage amounts from $2,000 to $50,000
- No medical exam for most applicants
- Accelerated death benefit for terminal illness
- Same-day approval available
Term Life Insurance
Available in 10, 15, 20, and 30-year terms with options to convert to permanent coverage. This provides affordable temporary protection for families with growing financial responsibilities.
Bottom Line
Royal Neighbors excels with simplified underwriting for whole life and final expense coverage, but their term life options are more limited compared to larger insurers.
How Does Their Underwriting Work?
Key insight: Royal Neighbors has built its reputation on lenient underwriting that accepts many applicants other companies would decline, particularly those with diabetes, obesity, or other manageable health conditions.
Simplified Issue Process
Most Royal Neighbors applications follow this streamlined process:
- Membership application: Complete free membership signup online
- Health questionnaire: Answer 5-10 basic health questions
- Phone interview: Brief conversation with underwriter
- Decision: Often same-day approval for qualified applicants
Health Conditions They Accept
Based on our analysis of their underwriting guidelines, Royal Neighbors typically accepts:
- Controlled diabetes (Type 1 and Type 2)
- Obesity without weight restrictions
- High blood pressure under medication
- Depression and anxiety with treatment
- Previous cancer with 2+ years remission
- Heart conditions depending on severity
Key Takeaways
- More lenient health requirements than most traditional insurers
- Focus on simplified issue means faster approval process
- Particularly good option for seniors with health issues
- Membership requirement adds an extra step but provides additional benefits
What Will Coverage Cost You?
Key insight: Royal Neighbors pricing varies significantly based on your age, health, and coverage type, but their rates are generally competitive for the simplified issue market. For example, a 65-year-old non-smoker might pay around $63 monthly for male coverage or $47 for female coverage.
Factors Affecting Your Rates
- Age: Primary factor in determining premium costs
- Gender: Women typically pay lower rates due to longer life expectancy
- Health status: Even with simplified underwriting, health affects pricing
- Smoking status: Smokers pay significantly higher premiums
- Coverage amount: Higher death benefits mean higher monthly costs
- State of residence: Some state regulations affect pricing
Bottom Line
Royal Neighbors rates are competitive for simplified issue coverage but may be higher than traditional fully-underwritten policies from larger insurers.
What’s the Customer Experience Like?
Key insight: Customer reviews reveal a mixed experience with Royal Neighbors, ranging from praise for their claims handling to frustration with customer service accessibility. Recent Better Business Bureau complaints include issues with prolonged claims processing, difficulty reaching customer service, and billing discrepancies.
Positive Customer Feedback
- Quick claims processing: Some families report efficient death benefit payments
- Helpful with health conditions: Approval for applicants declined elsewhere
- Community involvement: Members appreciate the social impact programs
- Same-day approvals: Fast underwriting for qualified applicants
Common Complaints
Based on our analysis of customer reviews and BBB complaints:
- Customer service delays: Difficulty reaching representatives by phone
- Claims processing issues: Some reports of extended investigation periods
- Billing problems: Confusion about payment processing and account access
- Agent issues: Complaints about unauthorized policy enrollment
“The reality with Royal Neighbors is that they excel in certain areas like simplified underwriting but struggle with customer service consistency. Their BBB rating remains A+, but recent complaints suggest room for improvement in communication.”
– InsuranceBrokers USA – Management Team
Key Takeaways
- Customer service quality appears inconsistent across different departments
- Claims experience varies significantly between straightforward and complex cases
- Member benefits and community programs receive positive feedback
- Phone-based customer service needs improvement according to recent reviews
What Are the Advantages and Disadvantages?
Advantages of Royal Neighbors
- Lenient underwriting: Accept many health conditions other insurers decline
- No medical exams: Simplified application process for most products
- Immediate coverage: No waiting periods for death benefits
- Strong financial ratings: A rating from AM Best with stable outlook
- Community focus: Member benefits and social impact programs
- Women-led heritage: Pioneering history of serving women and families
- Final expense specialization: Good option for burial insurance needs
Disadvantages to Consider
- Membership requirement: Extra step to become eligible for coverage
- Limited product selection: Fewer options than major insurers
- Customer service concerns: Recent complaints about accessibility
- Higher rates for healthy applicants: May cost more than fully-underwritten policies
- Fraternal society structure: Not covered by state guarantee associations
- Claims processing delays: Some reports of extended investigation periods
Bottom Line
Royal Neighbors works best for individuals with health issues who need simplified underwriting, but healthy applicants might find better rates with traditional insurers.
Should You Consider Alternatives?
Key insight: While Royal Neighbors serves a specific niche well, several situations warrant considering alternative insurers. The decision depends on your health status, coverage needs, and preferences for customer service.
When Royal Neighbors Makes Sense
- You have health conditions that make traditional underwriting difficult
- You want final expense coverage without medical exams
- You value community involvement and member benefits
- You prefer simplified application processes
- You’re interested in supporting a women-led organization
When to Consider Alternatives
- You’re in excellent health and can qualify for preferred rates
- You need larger coverage amounts (over $50,000)
- You want more product variety and riders
- Customer service responsiveness is a priority
- You prefer working with agents from multiple companies
For individuals seeking broader options, consider exploring our comprehensive guide to the top 10 best life insurance companies, which includes detailed comparisons of rates, products, and customer service across major insurers.
If you have pre-existing health conditions, our life insurance approvals with pre-existing medical conditions guide provides strategies for finding coverage regardless of your health status.
Key Takeaways
- Royal Neighbors fills an important niche for simplified issue coverage
- Their unique fraternal society structure provides additional member benefits
- Customer service issues may be a concern for some applicants
- Healthy applicants often find better rates with traditional insurers
Frequently Asked Questions
Do I have to become a member to buy Royal Neighbors life insurance?
Yes, membership is required. Royal Neighbors operates as a fraternal benefit society, which means you must be a member to purchase their insurance products. The good news is that basic membership is free and can be completed online. You’ll gain access to member benefits including community programs, scholarships, and discounts on various services.
How does Royal Neighbors handle claims processing?
Claims processing varies by complexity. Simple death claims are often processed within 2-4 weeks with proper documentation. However, recent customer reviews indicate some claims may face extended investigation periods lasting several months. The company requires standard documentation including death certificates and policy information to process claims.
What health conditions will disqualify me from Royal Neighbors coverage?
Very few conditions result in automatic disqualification. Royal Neighbors is known for accepting applicants with diabetes, obesity, high blood pressure, and other manageable conditions. They typically decline applicants who are currently hospitalized, on oxygen therapy, or have terminal illnesses. Each application is evaluated individually during the simplified underwriting process.
Can I convert my Royal Neighbors term life insurance to permanent coverage?
Yes, conversion options are available. Royal Neighbors term life policies typically include conversion privileges that allow you to change to whole life insurance without additional health underwriting. This must usually be done within specific time periods outlined in your policy, often within the first 5-10 years of coverage.
How does Royal Neighbors’ pricing compare to other insurers?
Pricing is competitive for simplified issue products but higher for healthy applicants. If you have health conditions that require simplified underwriting, Royal Neighbors often provides good value. However, healthy applicants who can qualify for fully-underwritten policies elsewhere may find significantly lower rates with traditional insurers offering preferred health discounts.
What happens if Royal Neighbors goes out of business?
Fraternal benefit societies aren’t covered by state guarantee associations. Unlike traditional insurance companies, Royal Neighbors operates as a fraternal society, which means your policy wouldn’t be protected by state guarantee funds. However, their A rating from AM Best and 130+ year history suggest strong financial stability and low risk of insolvency.
Can I purchase Royal Neighbors insurance online?
Applications start online but require phone consultation. You can begin the membership and application process on Royal Neighbors’ website, but final approval typically requires a phone interview with an underwriter. This allows them to clarify health questions and ensure you understand the coverage terms before approval.
What member benefits come with Royal Neighbors membership?
Membership includes various community and educational benefits. Members gain access to local chapters for volunteer opportunities, scholarship programs for higher education, Nation of Neighbors grants supporting women’s initiatives, and discounts on medical, travel, and other services. The value of these benefits varies based on your interest in community involvement.
