Burial insurance is a must if you want to prepare for the costs of your final arrangements and take the stress off your loved ones. A quality burial insurance plan will give you a death benefit that covers your final expenses for a low monthly premium. Coverage sometimes starts after a waiting period of two to three years if you have a health condition. Our team of agents is trained to find you the burial insurance policy that fits your budget, covers your final expenses, and starts covering you as soon as possible.
Royal Neighbors of America is a life insurer that offers, among other products, a graded benefit plan and a simplified issue whole life plan. These two choices provide our clients with the ability to secure coverage from the beginning without a waiting period or higher premiums. Even people with diabetes, a history of mini-strokes, mental health concerns, cholesterol, high blood pressure, and more can find a policy through Royal Neighbors. Along with these come member discounts on valuable services that speak to the true value of this fraternal benefits society.
With over a century of experience and solid financials, this company cares for its members. And if you value philanthropy, this organization has got it too. Read on to learn more about Royal Neighbors of America and the burial insurance it offers.
Royal Neighbors of America History
Royal Neighbors of America has been around for more than 120 years as a nonprofit insurer. One of the largest women-led life insurance groups, Royal Neighbors was one of the first insurers in the U.S. to insure women and children. The mission of the organization is to empower women and their families with a neighbor-helping-neighbor philosophy.
The organization has an A- rating from A.M. Best and has over 200,000 members and more than $2.7 billion in life insurance in force. Royal Neighbors handles almost $1 billion in assets and has a balanced investment portfolio which ensures it will be able to pay the claims of its members.
Along with burial insurance, Royal Neighbors offers additional life insurance and annuity products. Here we will discuss only the burial insurance and member benefits of the organization.
Royal Neighbors is a nonprofit organization that funds many programs to help communities. Its Community Leadership Chapters are funded to put on local community charity events. The Difference Maker Fund supports community projects that align with Royal Neighbors’ mission, and the Nation of Neighbors financial grants are given to nominated members who are dedicated to helping others.
Fraternal Benefits Society
Royal Neighbors is not just any life insurance company. No, it’s a fraternal benefits society. If you’re not familiar with that concept, it’s a legal structure defined 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 that is incorporated for fraternal, benevolent, or religious purposes, including the provision of insurance or annuity benefits to its members, their spouses, children or beneficiaries.”
The society is structured in that way to allow it to exist as a nonprofit organization while pursuing its philanthropic goals and providing life insurance to its members and their beneficiaries. Royal Neighbors has no shareholders and any profits from the life insurance sales go to members in benefits and support.
This society differs from a traditional insurance company in that it does not rely on the U.S. state-guaranteed fund. That means that if Royal Neighbors becomes insolvent and cannot pay its claims, it would take on that problem alone. This would be done by assessing the problem and often requiring payment to fill that deficiency.
The policy you buy from Royal Neighbors is called a certificate instead of a contract.
Graded Death Benefit
The graded death benefit plan from Royal Neighbors is a solution for people with health conditions that would prevent them from signing up for the simplified issue plan. If you answer Yes to any of the health questions from a simplified issue policy, you will land here. The distinction with this policy is premiums that are slightly higher and a scheduled release of your death benefit coverage.
The questions the graded health benefit plan asks include the following:
- During the past 24 months, has the Proposed Insured been diagnosed as having, or been treated 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)?
- During the past 24 months, has the Proposed Insured been diagnosed as having, or been treated for:
- Emphysema, chronic obstructive pulmonary disease (COPD), or tuberculosis (TB)?
- Neuromuscular disease (include Multiple Sclerosis, Lou Gehrig’s Disease, Epilepsy, or Parkinson’s Disease)?
These plans have a minimum death benefit of $5,000 and a maximum of $10,000. Coverage never expires, your benefit never decreases, and you have fixed monthly premiums for life.
The graded component of this plan refers to the payout of the death benefit. Royal Neighbors will pay 30% of the death benefit amount to your beneficiaries if you pass away during the first year. If you pass away during the second year, they will payout 70% of the death benefit amount. Your beneficiaries would receive the full death benefit in the third year and beyond. In the event of an accidental death, Royal Neighbors will pay the full death benefit during the first two years, except in Arkansas.
This graded benefit offers you a degree of protection in case something were to happen in the next two years. Other plans, such as guaranteed issue plans, have a waiting period of two years during which your beneficiaries would receive only the amount you paid in premiums plus 10% interest if you died. The percentage of your benefit that your beneficiaries will receive under this plan gives you some reassurance that your final expenses will be at least partially taken care of.
Simplified Issue Whole Life
Royal Neighbors’ simplified issue whole life policy is a fantastic option for people with relatively clean health histories (if you can say No to each of the health questions). You receive first-day coverage and a larger potential death benefit size compared to the graded benefit plan. The pricing is also hard to beat for the coverage you receive. This plan is particularly good for people who suffer from diabetes, as it is accepting of diabetes patients, unlike many other burial insurance plans.
This plan has a minimum death benefit of $5,000 and a maximum of $25,000. Coverage never expires, your benefit never decreases, and you have fixed monthly premiums for life. You also get full coverage starting on day one.
Royal Neighbors is easily the most diabetes-friendly insurers out there. If you have diabetes, this is the plan for you. You get immediate first-day protection and will not be charged an increased premium because of your condition. If you develop complications with your diabetes, such as liver issues, kidney issues, and circulation issues like neuropathy, this plan is made for you. In most cases, insurance companies will turn you away if you report that you take one of the diabetes medications that commonly cause these adverse effects, such as Gabapentin, Neurontin, Lyrica, Lamictal, Lamotrigine, or Tegretol.
This plan also does not have a build chart, so someone who weighs 350 pounds can be treated the same as someone who weighs 150 pounds. People with Type II diabetes often tend to have weight issues which might have limited their options with a plan that uses a height and weight chart. When you go with Royal Neighbors, you don’t have to worry about being disqualified due to your size.
Diabetes is not the only condition where Royal Neighbors shines. The insurer is also kind to people who have a history of Transient Ischemic Attack (TIA). These mini-strokes, although different than full-blown strokes, are often counted as serious medical events by life insurance companies, which have been known to charge higher premiums or add waiting periods to the policies of those with the health issue. Royal Neighbors does not deny those with a history of TIA.
Royal Neighbors also accepts applicants who have a history of cholesterol problems, use of blood thinners, high blood pressure, and a myriad of mental health issues. These folks still receive the same day one full coverage without being charged higher premiums.
This plan is the best option for many people because of its immediate coverage and acceptance of many health conditions that would otherwise have been limiting. Your Senior Life Services agent can help you decide which plan is best for you.
Royal Neighbors Member Benefits
The society provides its members with a number of other benefits in addition to the insurance coverage they purchase. These include several discounts across different areas of health. Member benefits are built into your membership and do not cost extra. Royal Neighbors provides these benefits to add value and provide quality benefits and support to its members.
Members of Royal Neighbors can benefit from 5% to 50% off most dental procedures, including routine oral exams, unlimited cleanings, and major dental work such as dentures, root canals, and crowns. These benefits are available at more than 176,000 dental facilities.
Members of Royal Neighbors can save between 20% and 40% off the retail price of eyewear, plus discounts on exams. They can enjoy these savings at more than 65,000 eye care providers nationwide, including optometrists, ophthalmologists, opticians, and optical retailers.
Members can also save 40% to 50% off the national average cost for traditional LASIK surgery or receive savings on custom bladeless LASIK at over 800 QualSight locations.
Lab Services Discounts
DirectLabs provides Royal Neighbors members savings of 10% to 80% off blood and lab procedures at over 3,000 facilities across the country.
Legal Access Plans–Family Legal Protection Plan
Royal Neighbors members can access a pre-qualified network of more than 17,000 attorneys in all 50 states and U.S. territories who provide free and discounted legal services. These services include consultations to help analyze legal issues, strategies, and options and to recommend a course of action.
Prescription Drug Discounts
Royal Neighbors members can save between 15% and 60% off generic drugs and between 15% and 25% off brand name prescriptions at more than 60,000 MedImpact pharmacies across the country.
US Imaging, a premier diagnostic imaging program, provides Royal Neighbors members savings of 10% to 60% on advanced imaging costs for MRI, CT, and PET scans at more than 2,400 freestanding radiology facilities in all U.S. states except Hawaii, Vermont, and Wyoming.
A Royal Neighbors eCommerce portal and shopping assistant leads members to more than 4,000 retailers, where they can earn 1% to 40% cashback for shopping online.
Hearing Aids and Services
Members save on hearing aids and receive a 30% discount on diagnostic services at more than 2,700 locations.
Summary of Royal Neighbors of America Burial Insurance
The value of a policy with Royal Neighbors comes not only from its coverage but from the benefits the society extends to its members in the form of discounts for services from prescription drugs to vision, hearing, dental, lab services, imaging, retail, and more.
Royal Neighbors is not only an insurance company that can help you plan for your end-of-life expenses; they can also offer you living benefits in the form of discounts in some of the supplemental health and life areas our clients value most.
As an independent insurance agency, Senior Life Services will work to match you with the right policy that fits your needs and puts you in a good position to take care of your family. Royal Neighbors may have the plan for you, and we can help you find it. If not, our team can match you with the plan that suits you best. Contact us today to set up an appointment to discuss your burial insurance options.