Quick answer
Royal Neighbors of America is a fraternal benefit society founded in 1895 in Council Bluffs, Iowa. Royal Neighbors is one of the few major U.S. life insurance organizations founded and historically governed by women, with a continued focus on women-led households. The organization sells term life, whole life, simplified-issue whole life, and guaranteed-issue whole life with included fraternal member benefits (orphan benefit, scholarship grants, terminal illness loans, community grants).
Our take on Royal Neighbors
Royal Neighbors of America began in Council Bluffs, Iowa, in 1895. A group of eight women sought to provide affordable life insurance to women and children, groups that were previously dismissed as uninsurable. Royal Neighbors would later become an avid supporter of the Women’s Suffrage Movement, and over the years the company has grown to become one of the largest women-led insurance companies in the industry.
Royal Neighbors operates as a fraternal benefit society, meaning that they require membership for their goods and services. There are no requirements for membership, other than either the purchase of one of their insurance products or by paying a $20 annual fee. Membership also comes with some additional benefits and discounts through approved retailers and health care providers.
| Royal Neighbors life Insurance Company Details | |
|---|---|
| A.M Best Rating | A |
| S&P Rating | A- |
| BBB Rating | A+ |
| Customer Service Phone | 800-627-4762 |
| Website | www.royalneighbors.org |
| Address | Royal Neighbors of America 230 16th Street Rock Island, IL 61201-8645 |
What we like
Serving Women and Children
Royal Neighbors has certainly achieved its goal of providing life insurance options to women and children, and they continue to give back by offering a scholarship program for their members.
Flexible Options
Royal Neighbors offers their customers with a suitable range of products, including whole, universal, and term life policies. These policies can be further modified with available riders.
What we don’t like
Membership Requirements
While membership confers some additional benefits, some customers may be put off by the membership requirements.
Reliance on Sales Representatives
Many companies allow their customers to receive online quotes and even policy coverage through an online portal. Royal Neighbors relies on sales representatives. While some may appreciate this personal touch, others may prefer the convenience of online tools.
Royal Neighbors Insurance Products
Term Life
Royal Neighbors also provides a variety of level term life insurance policies through their JETerm coverage. These policies can be further modified through multiple riders, and they also permit customers to convert their policy into a permanent policy following the initial term.
Whole Life Insurance
Royal Neighbors offers four types of permanent whole life insurance policies:
The Essential Whole Life Policy
This policy is available with coverage starting at $25,000. This policy can also be modified with a variety of riders including:
- Accelerated Death Benefits
- Accidental Death
- Guaranteed Insurability
- Waivers for Cancer and Disability
These riders allow customers to get the coverage they need, but they also raise the premium.
Youth Whole Life
Royal Neighbors also offers a youth whole life plan for those under 18. This can include a guaranteed insurability rider and an accelerated death benefit.
The Royal Legacy Single Premium
Available to applicants between ages 45-80, this single premium life insurance policy requires a lump-sum payment of at least $10,000, though the death benefit is guaranteed to be higher than the premium paid.
Simplified Issue Whole Life
Available to applicants between ages 50-85, this policy offers instant issue life insurance coverage ranging from $5,000 and $25,000. The product is a no medical exam life insurance policy. This policy is ideal for use as a final expense insurance policy, covering medical bills and other outstanding financial obligations.
Universal Life
The Royal Neighbors SecureLife universal life insurance plan offers customers flexibility in premiums, modifying payments depending on the insured’s financial needs.
They also offer a 20-year no lapse guarantee. This is helpful, though admittedly lower than the guarantees offered by some competitors.
Policy benefits
Riders
Royal Neighbors also offers a variety of ways to customize their policies, including:
- Disability Waiver - This rider waives the premium requirements in the event that the insured becomes disabled.
- Accelerated Death - In the event of a terminal illness, policyholders can borrow money from their death benefit to pay for other expenses, such as medical bills.
- Guaranteed Insurability - A guaranteed insurability rider allows the policyholder to increase their coverage in increments of $25,000, without requiring a medical exam. While this rider is not uncommon, Royal Neighbors offers this rider for term life policyholders as well as whole.
- Children’s Rider - A life insurance for children rider pays a smaller amount than an actual child life insurance policy, but it can be used to cover the cost of a funeral and final expenses in the event of the death of a child.
Annuities
Royal Neighbors offers a variety of annuity options. These aren’t related to life insurance per se, but Royal Neighbors members may appreciate the convenience of these investment options offered through the same company.
A Single-Premium Deferred Annuity
Single-premium deferred annuities require only a lump-sum payment to provide the initial funding, which grows on a tax-deferred basis until maturation. This can be helpful for those planning additional retirement savings.
Flexible-Premium Deferred Annuity
A flexible-premium deferred annuity allows the customer to make multiple unscheduled payments into the annuity until maturation, which lets you invest at your own pace.
Single-Premium Immediate Annuity
A single-premium immediate annuity allows you to pay Royal Neighbors an up-front premium in exchange for guaranteed payments over time.
Membership Benefits
Membership in Royal Neighbors comes with several benefits:
- Dental Discounts in the amount of 5-50%
- Vision Discounts in the amount of 20-40% off retail price of glasses
- Lab services 10-80% off
- Free and discounted legal advice and services through the pre-qualified network
- Imaging discounts 10-60%
- Hearing aids at 30% off
- Retail/ecommerce offering 1-40% off at 4,000 leading merchants
Of course, it’s worth mentioning that you can become a member of Royal Neighbors without purchasing an insurance policy, so these benefits are available to non-policyholders.
Cost
Average Pricing
Accelerated underwriting will raise the monthly premium, but the rates remain competitive with other companies that don’t require a medical exam.
No Online Quotes
Additionally, there are no online options for obtaining a quote, let alone securing a policy. Members are encouraged to contact a representative who can walk the customer through the various policy options. If you prefer this human-to-human interaction, Royal Neighbors may be a great option for you. Others may prefer to avoid the hassle of solicitation by finding a web-based company.
Performance
Financial ratings
Royal Neighbors has enjoyed a solid financial performance:
- A.M. Best Rating: A
- BBB: A+
The company’s history also indicates that they can be relied on to pay the death benefit and other expenses at the appropriate time.
Frequently Asked Questions
Is Royal Neighbors of America a good life insurance company?
Yes, for buyers fitting its specialty profile. Royal Neighbors is rated A- (Excellent) by A.M. Best, slightly below the A and A+ ratings of larger mutual carriers but solidly in the "Excellent" tier of financial strength. As a fraternal benefit society, Royal Neighbors operates as a not-for-profit with member benefits and community-grant programs rather than shareholder returns. The organization has been operating for over 130 years and has a particularly strong reputation in the simplified-issue and senior life insurance segments.
What is a fraternal benefit society?
A fraternal benefit society is a not-for-profit insurance organization owned by and operated for the benefit of its members. Surplus is distributed through member benefits and community-grant programs rather than to shareholders. Examples include Royal Neighbors of America, Foresters Financial, Knights of Columbus, Modern Woodmen of America, and Catholic Order of Foresters. Members typically share a common bond (Royal Neighbors' historical bond was women's mutual aid). Fraternal benefit societies are regulated by state insurance departments alongside traditional carriers.
What life insurance products does Royal Neighbors offer?
Royal Neighbors offers four main product types: (1) Royal Neighbors Term Life - 10/20/30-year level term life for ages 18-60, (2) Whole Life - traditional whole life with cash-value growth and dividend potential, (3) Simplified Senior Whole Life - simplified-issue whole life for ages 50-75 with coverage up to $25,000, (4) Guaranteed Issue Whole Life - no health questions for ages 50-75 with coverage up to $25,000 and 2-year graded benefit period. All products include fraternal member benefits.
What are Royal Neighbors member benefits?
Every Royal Neighbors life insurance policyholder automatically becomes a member and receives included benefits at no extra cost: (1) Orphan Benefit - financial support for children whose member parent dies, (2) Scholarship Grant Program - annual scholarship grants for member dependents in post-secondary education, (3) Terminal Illness Loan - access to a portion of the death benefit as a loan if diagnosed with terminal illness, (4) Community Volunteer Network and matching grants for members' charitable work. These benefits are funded from the fraternal surplus.
Why is Royal Neighbors known as a women-focused carrier?
Royal Neighbors of America was founded in 1895 by a group of women in Council Bluffs, Iowa specifically to provide life insurance access to women at a time when women could not easily obtain coverage from male-dominated carriers. The organization has historically been governed by women, with women board members and executives throughout its history. Today, the carrier continues to actively market to women-led households and remains one of the few major U.S. life insurers founded and led by women.
Does Royal Neighbors require a medical exam?
It depends on the product. Royal Neighbors Term Life and standard Whole Life typically require a paramedical exam for face amounts above $250,000. Simplified Senior Whole Life (ages 50-75) uses simplified-issue underwriting with health questions but no exam. Guaranteed Issue Whole Life requires no health questions at all. For most senior life insurance applicants, Royal Neighbors' no-exam products are the relevant offerings.
How much does Royal Neighbors insurance cost?
Sample monthly rates: 65-year-old non-smoking female buying $15,000 Simplified Senior Whole Life, around $48-62/month. Same applicant buying $10,000 Guaranteed Issue Whole Life, around $52-68/month (higher per-dollar because of no-health-questions underwriting). 35-year-old healthy female buying $250,000 20-year term, around $20-26/month. Royal Neighbors is competitive within the senior and simplified-issue segments but generally not the lowest-cost option for younger applicants seeking large term face amounts.
How long does Royal Neighbors take to approve applications?
Simplified Senior Whole Life is typically approved within 24-48 hours. Guaranteed Issue Whole Life is approved within 24 hours (no health questions to verify). Standard Whole Life and Royal Neighbors Term Life requiring a paramedical exam take 2-6 weeks depending on exam scheduling. Royal Neighbors' application timelines are typical for fraternal carriers in the simplified-issue space.
Who should buy life insurance from Royal Neighbors?
Royal Neighbors is best for: (1) Women-led households seeking a values-aligned carrier with women's leadership history, (2) Applicants ages 50-75 needing simplified-issue or guaranteed-acceptance whole life for final expense, (3) Buyers who appreciate fraternal member benefits (orphan benefit, scholarship grants, community matching), (4) Buyers in Royal Neighbors' geographic strongholds (Midwest, particularly Iowa and Illinois). NOT the best fit for younger applicants seeking large term face amounts (Banner Life, Protective, or Mutual of Omaha typically beat them on price for that segment).
How do I file a claim with Royal Neighbors?
Beneficiaries can file a claim by calling Royal Neighbors at 1-800-627-4762 or by visiting RoyalNeighbors.org/claim. Required documentation includes the certified death certificate, the policy number, and the beneficiary's ID. Most claims are paid within 14-30 days of receiving complete documentation. Royal Neighbors' claims service is staffed by experienced agents and is generally well-regarded for personalized service.
