Life insurance can play a fundamental role in your overall financial planning. One reason for this is because, regardless of your age or employment status, you could still leave those you love in financial hardship if the unanticipated were to occur.
The takings from a life insurance policy can be used for any number of needs by relatives and survivors. These may include the payoff of debts, such as a mortgage, the funding of future college expenses for a child or grandchild, or even for paying everyday living expenses. This is especially the case of a spouse and children depended on your income for their support.
When you are shopping for the right life insurance protection, it is important that you obtain the proper form and amount of policy. That is because you don't want to be over- or under-insured. You will also want to make sure that the underlying insurance carrier is durable and stable from a fiscal standpoint, and that it has a good, positive reputation for paying out its claims to policy holders. One life insurance company that fits these parameters is Royal Neighbors of America.
The History of Royal Neighbors of America Life Insurance Company
Royal Neighbors has been in the business of providing protection and peace of mind for more than 120 years. In fact, this company represents some revolutionary events in the history of the life insurance industry.
For example, back in the late 1800s, neither women or children were considered to be insurable for life insurance coverage. But Royal Neighbors of America changed that. Royal Neighbors was founded by nine women – before the time that women could vote, or even own property in many of the U.S. states. This company is today still one of the largest women-led life insurance carriers in the United States.
Royal Neighbors has a unique mission of insuring lives, supporting women, and serving communities. The company is organized as a fraternal benefit society, so in addition to providing financial protection, it also promotes community service, and neighbor helping neighbor. The company is headquartered in Rock Island, Illinois. Royal Neighbors of America also has a branch office in Mesa, Arizona.
Royal Neighbors of America Life Insurance Review
Over the years, Royal Neighbors has grown and expanded, and today is considered to, have a solid financial foundation, with more than $979 million in assets under management, and a surplus of nearly $190 million.
The company offers a broad range of life insurance and annuity products to help its customers grow and protect wealth and to protect the ones they love. Also, Royal Neighbors is very involved in community projects and volunteerism. The company also offers the Nation of Neighbors Program, which provides financial assistance to individuals who have a plan to either start or expand a business, organization, or group that assists women and girls in their community. In the year 2016, approximately $100,000 in grant money was distributed via the Nation of Neighbors Program, and more than $1.8 million has been awarded to grant recipients since the program began back in 2007.
Insurer Ratings and Better Business Bureau Grade
Due in large part to its financial strength and its timely payment of claims, Royal Neighbors of America has earned high ratings from the insurance rating agencies, including an A- (Excellent) from A.M. Best. This is the fourth highest rating out of 15 possible.
Also, Royal Neighbors of America has been an accredited member of the Better Business Bureau (BBB) since August 1, 1986. The company has been given a grade of A+ by the BBB, which is on an overall grading scale of A+ to F.
Over the past three years, Royal Neighbors has cleared a total of four customer complaints (all which occurred during the previous 12 months). Of these four charges, two had to do with the company's advertising and sales issues, and the other two were about the company's products and/or services.
Life Insurance Options Offered By Royal Neighbors of America
Royal Neighbors of America provides a comprehensive list of life insurance policy options to choose from. These include both term and permanent life insurance options. With term life insurance, there is death benefit only protection, without any cash value build up. Because of that, these types of policies are usually quite affordable – and they can allow those who need life insurance to protect those they care about, even if they don't have a large budget.
Term life insurance is purchased for a certain number of years, during which time the amount of the coverage, and the premium due, remain the same. This type of coverage can be a good option for those who are wanting to cover “temporary” needs, such as the payoff of a mortgage balance.
Royal Neighbors Insurance Company provides fully underwritten term life insurance policies, as well as its JETerm product, which is available to those who want a quick decision and fast coverage. This particular policy is available to applicants who are between the ages of 18 and 60, with coverage amounts up to $500,000 (or $250,000 depending on the individual's age at the time of application).
Policy holders may be able to add some different riders to their term life insurance coverage from Royal Neighbors. These can help to customize the coverage to their needs better. These can include:
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- Disability Waiter
- Accidental Death
- Accelerated Benefit
- Guaranteed Insurability
- Child Rider
There is also a cancer waiver rider, which is unique in the life insurance industry. The Promise Plus cancer waiver rider is designed to help in the event of a diagnosis of cervical, ovarian, or breast cancer at State ll or higher. With this rider, if the insured is diagnosed with any of the qualifying conditions, their premiums on the policy can be waived for two years.
Royal Neighbors of America also offers many different forms of permanent life insurance coverage. With a permanent life insurance policy, there is both death benefit protection, and a cash value builds up.
The cash that is in the cash value component of the policy is allowed to grow on a tax deferred basis, meaning that there is no tax due unless or until the policy holder withdraws the money. The types of permanent life insurance products that are offered via Royal Neighbors include:
- Whole Life
- Youth Whole Life
- Single Premium Whole Life
- Simplified Whole Life
- Universal Life
Whole life insurance provides a set amount of death benefit protection, as well as a premium that will not increase over time – even as the insured ages, or if they contract an adverse health issue.
With a whole life insurance policy, the cash value will grow at a set rate that is determined by the insurance company. As the name suggests, this type of coverage is aimed at covering a person for the whole of their life (if the premium is paid).
At Royal Neighbors, there is also a Youth Whole Life insurance plan available. While nobody wants to ever think about it, unfortunately, unexpected events can and do occur – and if so, they can be devastating both emotionally and financially. A youth whole life insurance policy can provide financial assurance, allowing family members one less thing to worry about at an already difficult time in their lives.
The Youth Whole Life insurance plan can also be continued as the child grows up – and because it is a permanent form of life insurance coverage, it will have a locked-in benefit that he or she can keep for the remainder of their life.
The company also offers a single premium whole life insurance option. Here, only one lump sum premium is required, and the policy is then considered to be paid up. The funds that are in the cash value of a single premium policy are still allowed to grow on a tax advantaged basis, so the policy holder may either borrow against or withdraw funds from the policy if need be.
With the Simplified Whole Life insurance, those who are between the ages of 50 and 85 may apply for coverage of between $5,000 and $25,000. This plan does not require a medical examination to be taken to qualify for coverage.
In addition to whole life insurance coverage, Royal Neighbors of America also has universal life insurance. These plans provide death benefit protection and a cash value component, but they are considered to be more flexible, as the policy holder (within certain guidelines) may be able to change the frequency and the amount of the premium. They may also be able to adjust the coverage amount to keep up with their changing needs.
The permanent life insurance policies that are offered by Royal Neighbors of American may also be eligible for individual riders that can help to customize the plans better. (Purchasers of Royal Neighbors whole life and universal life insurance products may also be able to add the Promise Plus cancer waiver rider to their policy, in addition to the other available riders)..
Other Products and Services Available
In addition to life insurance coverage. Royal Neighbors of America offers retirement annuities. These products provide a way to grow and compound money in a tax advantages manner, and to ensure that you have an income in the future that will last for your entire lifetime – regardless of how long that may be.
Royal Neighbors of America offers several different fixed annuity options, including:
- Flexible Premium Deferred Annuity – A flexible premium deferred annuity allows you to make regular contributions to the account over time. These funds can grow tax deferred, meaning that there is no tax due on the gain until the date of withdrawal. At the time you are ready to retire (or when you are ready for the annuity's income stream), there are several choices available regarding how to take these withdrawals – including the lifetime income option.
- Single Premium Deferred Annuity – With a single premium deferred annuity, you can deposit just one lump sum of money into the annuity that can grow and compound on a tax deferred basis. You can then withdraw the funds as an income stream at a time in the future.
- Single Premium Immediate Annuity – With a single premium immediate annuity, you can deposit just one lump sum – either from personal savings, or from a retirement account such as an IRA or 401(k) plan – and then start to receive an income immediately (or within a short time after the annuity purchase).
How to Get the Best Rates on Life Insurance Coverage Through Royal Neighbors of America
If you are seeking life insurance coverage from Royal Neighbors of America – or from any life insurance company – and you want to ensure that you get the best premium rate possible, it is recommended that you work with an independent life insurance agent. That way, you will be able to shop and compare policies, companies, and prices.
When you are ready to begin looking for the coverage and prices that are available to you, we can help. We are an independent insurance brokerage, and we partner with many of the top life insurance carriers in the market place today. We can offer you with all the details that you need, so to move forward, just simply fill out our quote form.
Also, our experts are available to answer any further questions or concerns that you may have. We can be reached directly, toll-free, by calling 888-836-7071. We understand that the obtaining of life insurance coverage can be a bit overwhelming. But this process can be so much easier when you work with an expert on your side. So, contact us today – we're here to help.