Royal Neighbors life insurance is a limited final expense and term life insurance provider. Officially known as Royal Neighbors of America, they started as a women’s social club in the late 1800s.
They gained traction over the turn of the century and now offer life insurance for not only women, but men as well. Royal Neighbors offers a small selection of life insurance products only to organization members. Final Expense Benefits’ mission is to connect you with the life insurance policy that best fits your needs. Unfortunately, Royal Neighbors life insurance may not be the best choice for several reasons.
If you’re interested in getting life insurance, call us at (866) 786-0725, Monday through Friday, 9 a.m. to 5 p.m. ET. Use our free online quoting tool for rate estimates.
What Is Royal Neighbors Life Insurance?
What would become Royal Neighbors started as a social club in Illinois in 1888, and was officially listed as a fraternal society in 1895. As life insurance gained popularity in the late 1800s, most insurers thought that it was only necessary for men. Royal Neighbors’ members sought to make life insurance available to not just men, but women and children too. According to Royal Neighbors, they were among the first American insurers to offer life insurance to women.
Royal Neighbors of America moved to their current headquarters in Rock Island, Illinois, in 1908. They initially offered life insurance to women and children only but have since expanded their life insurance options to men. While offerings have been expanded, it’s still necessary to be a society member to be eligible for Royal Neighbors life insurance.
Royal Neighbors Society Membership
Membership applications are handled on the Royal Neighbors website; to qualify for their financial products you must be a member. They offer two tiers of membership, one with a $20 yearly fee and some other benefits, and a free tier, which is all you need to qualify for life insurance.
Royal Neighbors remains a non-profit fraternal organization with a commitment to supporting women. They offer several member benefits in addition to their life insurance options and consistently perform community outreach services.
Royal Neighbors Life Insurance Options
Royal Neighbors offers a simplified issue whole life final expense insurance plan, a graded final expense plan, and term life insurance.
1
Simplifed Issue Whole Life Policy
Their level final expense policy is called the Simplified Issue Whole Life (SIWL) plan. It’s a no-wait final expense plan, with benefit values ranging from $7,000 to $50,000.
The Royal Neighbors simplified issue plan differs from other options in the market thanks to its lax underwriting. This means no medical exam is required and, while the application still requires answering a medical questionnaire, many people are still eligible, even with some fairly major health concerns.
Some common conditions still eligible for Royal Neighbors SIWL plan include, but are not limited to:
- Cancer within last two years
- Type 1 or 2 diabetes
- Heart attack within last two years
- Obesity
Most no-wait policies permit fewer health conditions than Royal Neighbors’ SIWL plan. People afflicted with a large number of health conditions that could make them ineligible for many other no-wait plans can still be eligible for this one.
2
Graded Whole Life Policy
Even with generous underwriting, not all health conditions can be accepted on a no-wait plan. Royal Neighbors also offers a graded final expense plan. Graded plans, also known as modified life insurance, are policies that allow for a wider range of major health concerns and often have near-guaranteed acceptance.
Royal Neighbors’ graded policy, like nearly every modified plan, has a mandatory two-year waiting period. If the policyholder dies within the policy’s first two years, the payout will be delayed.
3
Term Life Policy
Their term life insurance ranges from $50,000 to $5 million payout values and is available in 10, 15, and 30-year terms. Like most term plans, eligibility is more restrictive, with stricter underwriting that allows applicants between ages 18 and 65.
Royal Neighbors Life Insurance Availability
While their underwriting policies may be simple, availability for Royal Neighbors life insurance can be quite limited.
The simplified issue plan is the least restrictive. It’s available from ages 50 to 80, but isn’t sold in Alaska, Alabama, Hawaii, Louisiana, Massachusetts, New Hampshire, and New York.
Likewise, the graded plan also has several restrictions. It’s only available to seniors ages 50 to 75, and is only available in three states: Connecticut, Florida, and North Dakota.
Additionally, Royal Neighbors does not sell their life insurance directly. They only sell through licensed agencies. Final Expense Benefits is not a licensed partner with Royal Neighbors, but we aim to provide an unbiased opinion and to guide you to the life insurance plan that best fits your needs.
How Much Does Royal Neighbors Life Insurance Cost?
Royal Neighbors’s pricing structure is roughly around industry standards, but it has a major drawback. Their final expense plans both start at age 50, but rates for 50-year-old applicants are around 30% more than those of our top-rated insurance partners.
Beyond age 50, Royal Neighbors’ rates are more in line with industry standards.
Final Expense Benefits works with the top life insurance providers. Below are sample rates from our most-recommended partner providers:
| Company |
Male 50y/o |
Female 50y/o |
Male 60y/o |
Female 60y/o |
Male 70y/o |
Female 70y/o |
|---|---|---|---|---|---|---|
|
$34 |
$27 |
$50 |
$40 |
$70 |
$56 |
|
|
$31 |
$26 |
$43 |
$35 |
$71 |
$53 |
|
|
$31 |
$24 |
$44 |
$33 |
$75 |
$53 |
|
|
$34 |
$29 |
$45 |
$35 |
$79 |
$59 |
|
|
$33 |
$26 |
$48 |
$36 |
$82 |
$58 |
These figures are estimates only, based on a $10,000 final expense insurance policy with no applicant pre-existing conditions.
Contact Final Expense Benefits at (866) 786-0725, and we will help you find final expense insurance that fits your health and needs.
Royal Neighbors Life Insurance Third-Party Reviews
1
AM Best Rating
AM Best is a third-party agency that assesses insurance companies’ credit and ability to fulfill financial obligations. Recently, Royal Neighbors moved up from an A- rating to an A.
This high AM Best rating indicates they believe Royal Neighbors has a strong, improving financial basis.
2
NAIC Rating
The National Association of Insurance Commissioners (NAIC) records complaints against life insurers on their yearly complaint index, with the overall goal to protect consumers. Their rating scale ranges from 0 to 10. 1 is the average customer complaint rating and companies should aim to be rated below 1.
Royal Neighbors is rated at 1.20, indicating a slightly above average complaint rate.
3
BBB Rating
The Better Business Bureau (BBB) evaluates businesses’ trustworthiness by tracking customer complaints. They also offer complaint resolution services for customers and businesses. Based on complaints and resolutions, they rate companies on a scale from A+ to F.
The BBB grades Royal Neighbors at an A+. Royal Neighbors is accredited by the BBB. This signifies the BBB believes Royal Neighbors exhibits exceptional ability to successfully resolve customer concerns. However, Royal Neighbors customer reviews on the BBB website are overall negative, at a 1.83 out of 5.
Royal Neighbors Life Insurance Customer Reviews
Martha R
Sacramento, CA
1/5
Anthony C
Fort Lauderdale, FL
1/5
Agreed with all ratings. This company takes advantage of elderly and has the worst customer service. Policy owner for over 20 years, and ended up canceling it due to continued increase cost and pushed us out of the policy. Random notices of lapsed coverage when we’ve been making payments. The headache is NOT worth it.
Lane L
Grand Forks, ND
5/5
They were great. After my father passed they helped process the claim very quickly. I even took out a policy for myself. Highly recommend!!
Royal Neighbors Life Insurance Pros & Cons
Pros
- Generous underwriting
- Fraternal society member benefits
True to its roots, Royal Neighbors remains a fraternal society whose members enjoy a wide range of benefits, such as discounts on medical and travel services.
- Included life insurance rider
Royal Neighbors includes a built-in terminal illness rider with their simplified issue and graded plans. This rider pays up to 75% of the policy’s payout value to the policyholder if they are diagnosed with a terminal illness with less than a year to live. They also offer an optional accidental death rider that doubles the payout if the policyholder dies in an accident.
Cons
- State exclusions
Royal Neighbors’ simplified issue plan isn’t available in several states, and the graded plan is available in only Connecticut, Florida, and North Dakota.
- Must be a member
To qualify for Royal Neighbors life insurance, you need to be a fraternal organization member. Membership can be free, but still requires sending an application to Royal Neighbors.
- Noncompetitive rates
It’s typically best to lock in the best rates as soon as you’re eligible for life insurance. This is around age 50 for most carriers. However, Royal Neighbors’ rates at ages 50 through 60 are about 30% pricier than our top partners. Past age 60, Royal Neighbor’s prices are closer to industry standards.
- High minimum benefit
Most insurers offer final expense insurance with a minimum death benefit around $2,000 to $5,000. The minimum for Royal Neighbors final expense policy is $7,000.
- Mixed customer service reviews
Royal Neighbors insurance reviews are mixed. In particular, customers criticize their customer service and claims resolution. Some praise the service department and clearly are longtime customers, but others warn of hidden fees, difficulty with cancelling policies, and overwhelming paperwork when claiming benefits.
- Limited graded final expense plan
The Royal Neighbors of America graded final expense policy is often only needed for people in dire health, but limitations are exceptional. It has a high benefit floor at $7,000 and the maximum death benefit is only $10,000. It also has a mandatory 2-year waiting period and rates are significantly higher than those of standard policies.
Our Royal Neighbors Life Insurance Review & Final Thoughts
Royal Neighbors is a reputable insurer with many years of service. Their simplified issue whole life plan’s generous underwriting policy and member benefits may make them an appealing option, but some negative factors hold Royal Neighbors back. The graded plan is a noncompetitive option and their service complaints are cause for concern.
Royal Neighbors is unavailable in many states and, among other restrictions, is available only to society members. Despite these limitations, Royal Neighbors is still a quality provider.
What’s holding us back from recommending them is simply that many providers offer similar coverage for less expensive rates, without the same customer service concerns or availability restrictions. If you’re looking for a final expense policy with reliable customer service and great rates, contact Final Expense Benefits. We can help you find the best policy for your needs.
FAQ
Is Royal Neighbors of America legit?
Royal Neighbors is a legitimate life insurance provider with a small selection of whole life final expense policies and a term life plan. They’ve been in business over 120 years, providing quality life insurance.
Is Royal Neighbors a good company?
Royal Neighbors is a good life insurance company with an interesting history. They started in the late 1800s by providing life insurance to women and children, who the life insurance industry overlooked at the time. Now, they offer multiple insurance products and member benefits.
When was Royal Neighbors of America founded?
Royal Neighbors was founded as an official fraternal organization in 1895, but traces its roots to a women’s social club that first met in 1888.
Is Royal Neighbors of America life insurance worth it?
Royal Neighbors is overall an industry-standard insurer. They have a standout underwriting policy that means many people, regardless of health concerns, could be eligible for a policy. However, given their noncompetitive rates and spotty customer service history, you may be better served with one of our other top-rated insurers.
