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Royal Neighbors of America Final Expense Review

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If you are looking for final expense insurance, you need to read our Royal Neighbors of America review. This is where we dig into the company’s life insurance materials and guides, which are meant for brokers’ use, and put it in layman’s terms so that you can draw your conclusion.

We have no loyalty to any carrier on the market. Instead, our commitment goes to our clients by placing them with the right company based on their health conditions, available rates, and coverage type. Royal Neighbors of America is also one of our top 20 final expense companies.

Royal Neighbors of America History

In 1895, nine women funded Royal Neighbors of America. Back then, women couldn’t vote or own property, and they also weren’t allowed to have life insurance. This is the reason a women-led life insurance carrier was established.

Their message is simple and touching: empowering women and communities through financial protection solutions. Royal Neighbors of America provides extra benefits to its policyholders at no additional cost: Scholarships, Realize a Dream Program, and various health and retail discounts such as dental, prescriptions, vision and hearing services.

Financial Overview

Royal Neighbors of America Final Expense Products Review

Royal Neighbors of America offers two types of final expense policies: Simplified Issue Whole Life and Graded Death Benefit plans. I will take a look at both products in the paragraphs ahead. However, I would like to go over the basics of final expense coverage and who should buy it.

What Is Final Expense Life Insurance?

Final expense insurance is permanent coverage that is used to cover the costs associated with the insured’s death. Yes, even dying costs money, and since the deceased can’t pay for it, his loved ones will have to. Early preparation can help prevent financial pain for your loved ones. Medical bills, burial, and funeral services or cremation are among the reasons individuals purchase this form of protection.

The premium and the death benefit remain level throughout the insured’s lifetime. Another unique advantage to final expense is that they don’t require the applicant to undergo an exam as part of the underwriting process.

Instead, there are a few health questions to which you need to answer “yes/no”. In insurance lingo, we call it a “simplified issue” policy. Lastly, because final expense policies are whole life, they carry a cash value component which you can use in the future should you decide to surrender your policy or take out a loan.

Simplified Issue Whole Life (SIWL)

This plan is reserved for the healthier applicants. You must answer “no” to all the health questions on the application to be eligible for this type of coverage. There is no waiting period in which the policy will pay the death benefit.

This means 100% of the benefit amount will be paid to your beneficiaries upon your death, regardless of when that may be, a day after you purchased your policy or five years down the road. Your premium will remain the same until the age of 121.

  • Immediate death benefit
  • Issue ages: 50–85
  • Face amounts: $3,000–$25,000
  • Simplified issue with no medical exam needed
  • Permanent coverage

Graded Death Benefit (GDB)

This plan is for applicants who are not in the best of health. For that reason, they will not be eligible for an immediate death benefit if approved. Instead, only 30% of the death benefit will be paid for the first year, 70% in the second year, and only in the third year and beyond, 100%. Note that, just because you can’t qualify for the level benefit plan, you shouldn’t apply blindly and settle for the graded benefit plan.

The reason is where one company can give you only graded, another may go for a level benefit plan. This is where a broker can assist. After all, buying a policy which takes three years before they pay the full death benefit is a risky proposition for your heirs.

  • Graded benefit plan
    • 30% first year
    • 70% second year
    • 100% third year and beyond
  • Issue ages 50–85
  • Face amounts: $3,000–$10,000
  • Simplified issue with no medical exam needed
  • Permanent coverage

Knockout Questions

Royal Neighbors of America knockout questions

Accelerated Living Benefit Rider

An accelerated living benefit rider is a provision that allows the policyholder to access a portion of the death benefit while they are still alive should they be diagnosed with a terminal illness and have a life expectancy of 12 months or less.

  • Available on both level and graded benefit plans
  • No additional premium for the rider
  • Qualifying events:
    • Confined continuously to a nursing home for 90 days
    • Terminal illness with less than 12 months to live
  • Available on death benefit of $7,000 or more
  • Can accelerate up to 75% of the death amount
  • Rider isn’t available on all states

Royal Neighbors of America vs. Other Carriers’ Sample Monthly Rates

Male $10,000 Whole Life

 CompanyAge 50Age 60Age 70Age 80
 Assurity $28.82 $41.65 $73.05 $155.57
 Mutual of Omaha $29.16 $42.76 $73.70 $132.65
 Americo $32.06 $43.68 $72.93 $145.65
 Liberty Bankers Life $30.51 $45.80 $73.31 $146.80
 Phoenix$30.15 $43.27 $72.74 $146.92
 American-Amicable $30.80 $45.76 $76.57 $151.36
 United Home Life $31.02 $44.69 $74.63 $138.60
 Settlers $31.45 $45.31 $72.85 $153.80
 Transamerica $30.73 $43.85 $74.66 $140.22
 Royal Neighbors $37.89 $47.85 $71.34 $146.60

Female $10,000 Whole Life

 CompanyAge 50Age 60Age 70Age 80
 Assurity $25.48 $34.74 $56.41 $113.89
 Mutual of Omaha $24.67 $32.87 $53.24 $98.43
 Americo $24.56 $33.93 $53.43 $112.77
 Liberty Bankers Life $25.57 $34.67 $54.79 $109.16
 Phoenix$26.63 $36.46 $55.26 $110.24
 American-Amicable $25.96 $37.22 $58.70 $110.44
 United Home Life $26.06 $35.42 $73.28 $141.58
 Settlers $26.01 $36.38 $55.76 $113.48
 Transamerica $25.32 $33.72 $71.59 $104.11
 Royal Neighbors $32.19 $36.54 $53.07 $105.27

Male $20,000 Whole Life

 CompanyAge 50Age 60Age 70Age 80
 Assurity $55.44 $81.10 $143.90 $308.93
 Mutual of Omaha $55.11 $82.31 $144.20 $262.11
 Americo $60.33 $83.56 $142.06 $287.51
 Liberty Bankers Life $56.39 $86.97 $141.99 $288.97
 Phoenix$56.16 $82.40 $141.34 $289.69
 American-Amicable $58.96 $88.88 $150.50 $300.08
 United Home Life $57.68 $85.03 $144.91 $272.05
 Settlers $62.90 $90.61 $145.69 $291.13
 Transamerica $57.89 $84.05 $145.74 $276.88
 Royal Neighbors $73.17 $93.09 $140.07 $290.58

Female $20,000 Whole Life

 CompanyAge 50Age 60Age 70Age 80
 Assurity $48.77 $67.28 $110.62 $225.58
 Mutual of Omaha $46.14 $62.53 $103.28 $193.66
 Americo $45.32 $64.07 $103.06 $221.75
 Liberty Bankers Life $46.51 $64.71 $104.95 $213.69
 Phoenix$49.12 $68.78 $106.37 $216.34
 American-Amicable $49.28 $71.81 $114.75 $218.24
 United Home Life $47.76 $66.49 $100.59 $204.87
  Settlers $52.02 $72.76 $111.52 $226.95
 Transamerica $47.07 $63.87 $104.41 $204.65
 Royal Neighbors $61.77 $70.47 $103.53 $207.93

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of July 2018 and are subject to underwriting approval.*

Bottom Line

Let me start by saying how much I admire the fact that Royal Neighbors of America is a fraternal organization which has empowered women and communities for more than 120 years. Their members actively volunteer within neighborhoods and improve people’s lives at many levels across the United States.

Being a voice for those who don’t have it, may alone be a good reason for you to support and buy a policy from them. However, they aren’t as competitive, price-wise, when compared the major players such as Mutual of Omaha and Assurity. They tend to be more on par when applicants are 65 or older. If you are only eligible for the graded benefit plan, they only offer up to $10,000 in benefits, which may not be sufficient, and you may need to look somewhere else.

If you are an insulin-dependent diabetic who was diagnosed after the age of 30, you may qualify for the level benefit plan. They also don’t have any height and weight requirement, so if you are overweight and looking for final expense, you should consider them.

I believe there is no one company that suits every applicant. Rates, the state in which you reside, and your overall health will be a few of the factors a broker will consider before suggesting a carrier to you. You can go ahead and get instant quotes on this page by filling out the form on the right-hand side.

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