Royal Neighbors of America – 2023 Burial Insurance Review

Burial insurance becomes essential for seniors who wish to prepare for the financial aspects of their final arrangements, alleviating the burden on their loved ones. By opting for a high-quality burial insurance plan, seniors can ensure that their end-of-life expenses are covered through a low monthly premium. Depending on their health condition, coverage may commence after a waiting period of two to three years. Our compassionate team of agents specializes in finding burial insurance policies tailored to seniors’ budgets, providing comprehensive coverage for final expenses and prompt activation of benefits.

Burial Insurance with Royal Neighbors of America

Royal Neighbors of America, a respected life insurance provider, offers various options, including a graded benefit plan and a simplified issue whole life plan, to accommodate our senior clients. These choices empower seniors to secure coverage without any waiting period or higher premiums. Even individuals with diabetes, a history of mini-strokes, mental health concerns, high cholesterol, high blood pressure, and similar conditions can find suitable policies through Royal Neighbors. Additionally, members benefit from exclusive discounts on valuable services, highlighting the true value of this fraternal benefits society.

Boasting a rich history spanning over a century, Royal Neighbors of America has established itself as a nonprofit insurer. As one of the largest women-led life insurance groups, it was among the first to provide insurance coverage for women and children in the United States. Rooted in a neighbor-helping-neighbor philosophy, the organization aims to empower women and their families.

Royal Neighbors holds an A- rating from A.M. Best, with over 200,000 members and more than $2.7 billion in life insurance coverage. Managing nearly $1 billion in assets, the organization maintains a well-balanced investment portfolio to ensure the fulfillment of member claims.

In addition to burial insurance, Royal Neighbors offers a range of life insurance and annuity products. However, our focus here will be on discussing the burial insurance and member benefits offered by this organization.

Non-Profit Dedication

As a nonprofit organization, Royal Neighbors dedicates its resources to numerous community programs. Through its Community Leadership Chapters, the organization funds local charity events that positively impact communities. The Difference Maker Fund supports community projects aligned with Royal Neighbors’ mission, while the Nation of Neighbors financial grants are awarded to nominated members who demonstrate a strong commitment to helping others.

A Fraternal Benefits Society

Royal Neighbors stands apart as more than just an ordinary life insurance company—it operates as a fraternal benefits society. This legal structure defines it as a “body corporate, without share capital, operating for the benefit of its members and not for profit, with a representative form of government including a lodge system, and incorporated for fraternal, benevolent, or religious purposes, including the provision of insurance or annuity benefits to its members, their spouses, children, or beneficiaries.”

This unique society structure enables Royal Neighbors to function as a nonprofit organization while pursuing its philanthropic goals and offering life insurance coverage to members and their beneficiaries. With no shareholders to appease, any profits generated through life insurance sales are directed back to the members in the form of benefits and support.

Unlike traditional insurance companies, Royal Neighbors does not rely on the U.S. state-guaranteed fund. Therefore, if the organization were to face insolvency and struggle to honor its claims, it would shoulder the responsibility alone. This would involve assessing the situation and often requesting payments to bridge the gap.

The policies offered by Royal Neighbors are referred to as certificates instead of contracts.

Graded Death Benefit

The graded death benefit plan provided by Royal Neighbors is an ideal solution for seniors with health conditions that would prevent them from qualifying for the simplified issue plan. If seniors answer “Yes” to any of the health questions posed in the simplified issue policy, they will be directed to this plan. It is important to note that this plan entails slightly higher premiums and a structured release of the death benefit coverage.

The health questions for the graded health benefit plan include the following:

Within the past 24 months, has the Proposed Insured received a diagnosis or undergone treatment for:

• Stroke, angina (chest pain), heart attack, or cardiomyopathy?
• Heart or circulatory surgery (including pacemaker, heart valve replacement, bypass, angioplasty, stent implant, or any procedure to improve circulation to the heart or brain)?

Within the past 24 months, has the Proposed Insured received a diagnosis or undergone treatment for:

• Emphysema, chronic obstructive pulmonary disease (COPD), or tuberculosis (TB)?
• Neuromuscular disease (including Multiple Sclerosis, Lou Gehrig’s Disease, Epilepsy, or Parkinson’s Disease)?

These plans offer a minimum death benefit of $5,000 and a maximum of $10,000. The coverage is permanent, with no expiration date, and the death benefit amount remains fixed throughout the policy’s duration. Seniors enjoy the stability of fixed monthly premiums for life.

The term “graded” in this plan refers to the progressive payout of the death benefit. In the unfortunate event of the insured’s passing during the first year, Royal Neighbors will pay 30% of the death benefit to the beneficiaries. During the second year, the payout increases to 70% of the death benefit amount. From the third year onwards, beneficiaries receive the full death benefit amount. In the case of accidental death, Royal Neighbors will pay the full death benefit during the first two years, with the exception of Arkansas.

This graded benefit plan provides seniors with a level of protection, ensuring that if something were to happen within the next two years, their final expenses would be partially covered. In contrast to other plans with waiting periods, such as guaranteed issue plans, beneficiaries receive only the amount paid in premiums plus 10% interest if the insured passes away during the waiting period. With the graded benefit plan, beneficiaries can find reassurance that a portion of the death benefit will be available to cover the insured’s final expenses.

The simplified issue whole life policy offered by Royal Neighbors is an excellent choice for seniors who have maintained good health throughout their lives. If they can answer “No” to each of the health questions, they can benefit from immediate coverage and a potentially larger death benefit compared to the graded benefit plan. This plan is especially advantageous for individuals with diabetes, as it is more accepting of diabetes patients compared to many other burial insurance plans.

With a minimum death benefit of $5,000 and a maximum of $25,000, this coverage provides peace of mind that never expires. Seniors can enjoy fixed monthly premiums for life and full coverage starting on the very first day.

Royal Neighbors is known for its exceptional support for individuals with diabetes. Seniors with diabetes can receive immediate protection without facing increased premiums due to their condition. Even if they experience complications associated with diabetes, such as liver issues, kidney problems, or circulation issues like neuropathy, this plan is designed to accommodate their needs. Many insurance companies would typically turn away individuals who take diabetes medications that commonly cause adverse effects. However, Royal Neighbors understands the challenges faced by individuals with diabetes and welcomes them.

Furthermore, this plan does not use a height and weight chart, which means that individuals with weight concerns, often associated with Type II diabetes, do not have to worry about being disqualified based on their size. Royal Neighbors treats all applicants equally, regardless of their weight.

Royal Neighbors is also compassionate towards those who have a history of Transient Ischemic Attack (TIA), often referred to as mini-strokes. While other insurance companies may charge higher premiums or impose waiting periods for individuals with this health issue, Royal Neighbors does not deny coverage to those with a history of TIA.

The insurer also accepts applicants with a history of cholesterol problems, blood thinners, high blood pressure, and various mental health issues. These individuals can still enjoy full coverage from day one without facing higher premiums.

This comprehensive plan provides immediate coverage and accepts many health conditions that may have otherwise limited other options. Seniors can consult with their agent to determine if this plan is the best fit for their needs.

In addition to the insurance coverage, Royal Neighbors offers numerous benefits to its members. These benefits, including discounts in areas such as dental, vision, lab services, legal access, prescription drugs, imaging, retail, and hearing aids, are designed to add value and provide support to members. By choosing Royal Neighbors, seniors not only secure coverage for their end-of-life expenses but also gain access to valuable discounts in the areas of health and life that matter most to them.

At our independent insurance agency, we prioritize finding the right policy that suits seniors’ needs and ensures their family’s well-being. Royal Neighbors may have the perfect plan, and our dedicated team is here to assist in finding it. If Royal Neighbors does not meet their requirements, we can explore other options that align with their preferences. Contact us today to schedule an appointment and discuss burial insurance options that will bring you peace of mind.