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Royal Neighbors Life Insurance Review

royal neighbors review

Royal Neighbors makes our top final expense insurance companies list. Let’s take a look at why.

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Royal Neighbors Official Ratings

Ultimately, you need a company that is financially secure and good with customers so let’s take a look.

A.M. Best Rating A- (Excellent)

Royal Neighbors is rated A- Excellent (4th highest out of 15) by the A.M. Best Company.  

This puts Royal Neighbors in a strong position financially, demonstrating its ability to meet ongoing obligations to policyholders.

As of December 2019, AM Best also revised Royal Neighbor’s outlooks to positive from stable. 

If you have a read a review from us before, you will know that A.M. Best has been assessing the financial ratings of insurance companies for many years.

Within life insurance, most consumers see this little grade as essential because it suggests how well they can pay any claims coming their way. If a business cannot pay its claims, you should stay as far away as possible.

BBB rating A+

Once again, the Better Business Bureau (BBB) rating is another one that we use regularly since it shows how businesses deal with complaints and how they interact with customers.

Royal Neighbors most recent rating with the BBB is an ‘A+’ as of May 2020. With the BBB, each business is given a rating out of 100 depending on various factors and an A+ rating suggests that they are above 97 out of 100.

Royal Neighbors Life Insurance Policies

With term life, universal life, and annuities, Royal Neighbors of America offers a great variety.

However, it is the whole life insurance where the company really excels so this will be the focus of our attentions today.

With four different whole life policies, they are very close to offering something for everyone so keep reading and see which suits you best.

Whole Life

First up, we have their main whole life policy that lasts for a lifetime and sees the premiums remain the same throughout.

Once set up, it will remain in place unless you stop paying the premiums and your family can be protected.   Upon death, the beneficiary will be given the death benefit to spend on funeral costs, mortgage payments, debts, medical bills, college fees, or whatever it may be.

As with most other whole life policies, this also comes with a cash value which will accumulate over time.  If you need coverage for life, this will be the easiest policy for you as the coverage starts at $25,000.

Additionally, there are a number of ways to edit or enhance your policy via riders. If you haven’t heard of these before, they add more protection in case of certain scenarios.

For example, the disability waiver rider will see all your premiums waived in the event of a disability.  Aside from this, you could add accelerated benefit, accidental death, cancer waiver, child rider, and flexible premium deferred annuity.

Finally, the guaranteed insurability rider allows you to add extra coverage at a later date without a new medical exam.  Although these riders can increase your premium, they can be incredibly helpful in the long run.  With this option, you will need to undergo a medical examination but this helps to secure lower premiums in the long-term.

If you have been rejected from another company or need to avoid the medical exam, this option will not be for you but we do have some others to show.

Simplified Issue Whole Life

If you were to buy a simplified issue whole life policy, it is life insurance with no medical examination as the process is simplified.

Of course, you will be asked a few health questions but you have a much better chance of obtaining insurance with smaller health issues.  As long as you are between the age of 50 and 85, this option will be available to you.

Compared to the first policy we reviewed, there are some downsides in that the coverage only goes up to $25,000 in whole life insurance and it could be more expensive as the insurer is getting less information from you regarding your health.

Despite this, it is suited to those who are looking for final expense insurance that allows them to avoid the medical exam. With simplified issue policies the whole application process should be a lot easier and quicker.

With a medical examination on a fully underwritten policy, you normally have to wait for an appointment, then you have to wait for the results to come through, then the insurer makes a decision.

With no examination, your answers to the medical questions will be assessed and you should hear a reply much sooner.  An accelerated benefit is also available as a rider.

Single Premium Whole Life 

Although not everyone will be able to do this, you may have a sum of money sitting around waiting to be invested. If you haven’t yet invested in yourself and family in the shape of life insurance, now is the time.

With this policy, you can pay for everything upfront with a guaranteed death benefit. Whatever amount you choose for your beneficiaries, you will pay less in the lump-sum premium.  To qualify, you must be between 45 and 80 years and you are likely to need at least $10,000 to give away for loved ones.

If you want to get the payment out of the way or even leave a section of your death benefit to charity, this policy is a great way to do so.   Once again, you will have the chance to add the accelerated benefit rider to your policy.

Youth Whole Life

As we saw earlier, Royal Neighbors of America were among the leaders for introducing children’s insurance to the market and they continue to offer this product today.  If you are looking for protection for your child, this policy will keep the premiums low for years to come and the cash value will also build in value.

Later in life, you can use the cash value as a loan for college fees or even a downpayment on a home.

History of Royal Neighbors of America

Royal Neighbors of America can be described as ‘unique’ for a number of reasons, all of which are positive. Firstly, they were founded in 1895, giving them a rich history like so many other insurance companies.

Unlike many others, Royal Neighbors of America was founded as a fraternal organization by eight women. Since then, the company has supported women in business and still has women leading at the top twelve decades later. With the motto ‘insuring lives, supporting women, serving communities’, this provides insight into what drives them forward.

Over the years, their reputation has grown not only for their working practices but also for their excellent life insurance products. In fact, they were one of the first insurance companies to offer products specifically for women and children.

Today, they boast $1 billion worth of assets and around one-fifth of this amount in excess reserves. They also recently reached a new milestone of $3 billion in the amount of insurance in force.

Should I Choose Royal Neighbors of America?

If Royal Neighbors of America meets your life insurance needs, there’s no reason why you shouldn’t choose them. They have fantastic official ratings, ensuring that your claim will be granted and any issues with the policy will be fixed quickly.

In addition, they offer a wide range of products to meet your specific needs, whether you require a medical exam or not. Furthermore, their numerous riders make your policy highly customizable, which is not something that all insurers offer.

If you want that extra peace of mind in case of a serious illness or accident, their riders provide added protection.

Final thoughts…

Royal Neighbors of America is a unique life insurance company that has a rich history and reputation for supporting women in business and serving communities. If you’re looking for a life insurance policy that matches your needs, Royal Neighbors of America may be the best option for you. They offer a wide range of products, depending on your needs, and have fantastic official ratings that ensure your claim will be granted and any issues with the policy will be fixed quickly. Additionally, the numerous riders make your policy more customizable, providing you with extra peace of mind in case you are involved in an accident or come down with a serious illness.

However, to really know if Royal Neighbors of America is the best option for you, you need to shop around and compare their products, rates, and services to those of other insurance companies. You may find that another company offers better coverage, lower premiums, or more extensive riders that suit your needs. That’s why it’s essential to do your research and obtain quotes from several insurance companies before making a final decision. By doing so, you can be confident that you’ve made an informed choice that provides you with the best coverage at the most affordable price.

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