Royal Neighbors of America Burial Insurance Review
Royal Neighbors of America sells a burial insurance policy that’s often a poor fit for covering full funeral and end-of-life costs and can create financial problems most families don’t expect.
Royal Neighbors of America Key Takeaways
- Tightened medical underwriting guidelines make it more difficult to obtain first-day coverage for many common health conditions than in previous years. I avoid this by using carriers with a higher “appetite” for risks that Royal Neighbors of America now rejects.
- Fraternal membership benefits focus on community values but do not actually reduce your insurance premiums. I avoid this by finding you plans that price coverage based on your health rather than your club membership.
- Middle-of-the-road pricing structures mean healthy people often pay more than they would with other top-rated carriers. I avoid this by shopping the entire market to find the absolute lowest rate for your specific age.
- Expensive guaranteed-issue options charge rates that can be up to 2 or 3 times higher than those of other leading companies. I avoid this by reserving these plans as a last resort, only after I’ve checked every other option to help you save money.
- Severe customer service bottlenecks have led to some of the longest phone hold times in the industry, making it difficult to get simple answers about your policy. I avoid this by placing my clients with carriers that invest heavily in their support teams, so you can reach a real person in minutes, not hours.
NOTE: Burial, cremation, funeral, and whole life insurance are all types of final expense life insurance.
Expert 5-Star Burial Insurance Rating
★★★☆☆ Lowest Price
★★★★☆ First-Day Coverage
★★★☆☆ Burial Insurance Suitability
★★☆☆☆☆ Underwriting Flexibility
Royal Neighbors of America Burial Insurance Basics
Royal Neighbors of America operates as a member-owned fraternal benefit society that provides permanent whole-life insurance products to seniors nationwide. This non-profit organization treats policyholders as members rather than just customers and focuses heavily on community-based values for women and families. While they have a long history, they operate as an agent-underwritten carrier that sells through independent agents, so you must speak with a licensed professional to start an application.
Royal Neighbors of America Underwriting & Eligibility
Royal Neighbors of America checks your prescription history and medical records to determine if you qualify for immediate burial insurance coverage. This fraternal society uses simplified underwriting to assess your true health risk by quickly reviewing your medications and MIB file. This process helps them separate stable people from high-risk cases, but they have recently changed the rules to make it harder for people with chronic issues like diabetic nerve pain and other common health issues to get approved.
Royal Neighbors of America Policy Types & Waiting Periods
Royas Neighbors of America offers three main coverage types, ranging from immediate payouts to a mandatory two-year wait for families. Their Level plan pays the full death benefit on the very first day, but their Guaranteed Issue plan is astronomically priced and ranks among the most expensive deals on the market for people who cannot pass a health check.
- Level: Level burial insurance offers 1st-day coverage and pays the full death benefit from day one. I generally try to get people approved for Family Benefit Life, Trinity Life, or Aflac, as they have lower rates than Royal Neighbors of America.
- Graded: Graded burial insurance limits benefits during the first 24 months for health or medical-related causes of death. There are many better Graded plans on the market than this Royal Neighbors of America plan.
- Guaranteed Issue: Guaranteed issue burial insurance requires no health questions but includes a 2-year waiting period. This plan pays your premiums plus 10% interest only if death occurs in the first two years, and Royal Neighbors’ pricing is crazy higher than that of specialized providers like Gerber Life.
| Year of Death | Natural Cause Payout | Accidental Cause Payout |
|---|---|---|
| Year 1 | 30% of Benefit (Graded) | 100% of Benefit |
| Year 2 | 70% of Benefit (Graded) | 100% of Benefit |
| Year 3+ | 100% of Benefit | 100% of Benefit |
Royal Neighbors of America Rate Analysis
Middle-of-the-road pricing results in higher monthly premiums for many seniors who apply for coverage through independent agent marketing. These higher costs assume a higher mortality rate and can lead to you paying thousands more over the life of the policy compared to more competitive insurers.
| Age | Male ($10,000 Coverage) | Female ($10,000 Coverage) |
|---|---|---|
| 60 | $48.50 | $38.40 |
| 65 | $62.20 | $46.80 |
| 70 | $84.90 | $62.10 |
Royal Neighbors of America Long-Term Value: Overpaying for burial insurance destroys the financial benefit for your family. An extra $38 per month adds up to $456 in unnecessary costs every single year. This overpayment totals $4,560 over a 10-year period. On a $10,000 policy, you effectively prepay nearly half of your own death benefit just to cover higher premiums. This price hike ruins the long-term value of your coverage because your family loses thousands of dollars that should have stayed in your bank account.
Royal Neighbors of America Financial Strength & Consumer Trust
A.M. Best currently assigns this society an A (Excellent) rating, which indicates it has the financial strength to pay death benefits when the time comes. While they follow the same financial reporting standards as commercial carriers, their status as a fraternal organization means they operate under a different legal structure that prioritizes member-led governance.
Most consumer frustrations do not stem from their ability to pay, but rather from high prices, very restrictive underwriting rules, and challenging customer service wait times that can leave families hanging for answers.
Royal Neighbors of America Pros and Cons
Comparing these fraternal mailers to real insurance shows that these forms help the company make money without giving any real help to you.
PROS
- Member benefits include access to scholarships and legal discounts.
- Fixed rates apply: Your monthly premium stays the same for your entire life.
- Fast electronic apps: Most people get answers quickly on their phones or computers.
CONS
- Difficult health questions: It is now harder to get first-day coverage if you have any chronic issues than in the past.
- Terrible guaranteed issue: The rates for their “no-questions” plan are sometimes up to three times higher than competitors like Gerber Life.
- Higher average pricing: Healthy people can almost always find a better deal with a different A-rated carrier.
This company is best for a “last-resort” profile, where a person values fraternal membership more than the insurance’s actual cost. You should only buy Royal Neighbors of America if you have already checked every other broker-supported option and found no better price.
Frequently Asked Questions: Royal Neighbors of America Burial Insurance Review
Is Royal Neighbors of America a legitimate burial insurance company?
Royal Neighbors of America is a legitimate non-profit fraternal benefit society that has been in operation since 1895. Headquartered in Rock Island, Illinois, it is one of the largest women-led insurance organizations in the United States and is legally authorized to sell life insurance and annuities in nearly every state. Unlike traditional commercial insurers, Royal Neighbors reinvests a portion of its revenue into community service projects and member scholarships rather than paying dividends to corporate stockholders.
What is the catch with Royal Neighbors burial insurance?
The primary catch with Royal Neighbors is that their underwriting guidelines for “Level” (first-day) coverage have become more restrictive over the last few years. Many seniors with common chronic conditions, such as diabetic neuropathy or certain respiratory issues, may find themselves disqualified from the best rates and forced into a “Graded” plan. This results in a situation where you pay a higher monthly premium but receive only partial protection for the first 24 months of the policy.
Does Royal Neighbors offer immediate first-day coverage?
First-day coverage is available through the “Ensured Legacy Level” plan for applicants who can answer “No” to every health question on the application. If you qualify for this tier, your beneficiaries are eligible to receive the full death benefit immediately upon your passing, even if you die shortly after the policy is issued. However, if your medical history indicates a “Yes” response to certain conditions, the company will instead offer a graded payout structure.
How does the Royal Neighbors graded death benefit work?
The graded death benefit plan is designed for seniors with moderate health challenges and features a specific payout schedule during the first two years. If you die of natural causes in the first year, the company pays 30% of the benefit; in the second year, the payout increases to 70%. Full 100% coverage only begins in the third year, though accidental deaths are generally covered for the full amount from the very first day.
Is Royal Neighbors of America burial insurance expensive?
Royal Neighbors’ burial insurance rates are typically considered “middle-of-the-road” when compared to other A-rated senior insurance carriers. While they are far more affordable than “guaranteed issue” plans from big-box insurers, they are often slightly higher than the most competitive specialized final expense companies. Healthy individuals can often save money by shopping with independent brokers who can access lower-cost carriers such as Trinity Life, Family Benefit Life, or Aflac.
What are the current financial ratings for Royal Neighbors?
Royal Neighbors of America holds an “A” (Excellent) rating from AM Best, which was reaffirmed in December 2025. This rating reflects the society’s strong balance sheet, “strongest” risk-adjusted capitalization, and consistent ability to meet its long-term financial obligations to policyholders. For consumers, this means the company is financially stable and highly likely to pay out claims to beneficiaries for decades to come.
Does Royal Neighbors require a medical exam?
Royal Neighbors uses a “simplified issue” application process that does not require a physical medical exam or blood work. Instead, the company relies on your answers to health questions and a digital review of your prescription history and Medical Information Bureau (MIB) records. This allows the company to issue most policies within minutes or days, though it also means they are very thorough in checking for “hidden” health issues in your medical files.
Can I borrow money from a Royal Neighbors burial policy?
Royal Neighbors’ final expense policies are whole life contracts that build guaranteed cash value over time. Once the policy has been active for several years and has accumulated sufficient value, you can request a policy loan to cover emergency expenses. However, any outstanding loan balance and interest will be deducted from the death benefit payout, which could leave your family with less money than intended for your funeral costs.
What is the most common complaint about Royal Neighbors?
The most frequent customer complaints about Royal Neighbors involve long hold times and administrative delays. While the company is praised for its mission-driven approach, many members report frustration when trying to reach a live representative for simple policy changes or billing questions. Additionally, families sometimes express confusion when a “Graded” policy pays out less than the full amount because the two-year waiting period had not yet expired.
Is Royal Neighbors a good choice for diabetics?
Royal Neighbors is often an “OK” choice for diabetics (but other carriers are better) as long as they do not have severe complications like kidney damage or amputations. They are generally accepting of insulin-dependent applicants, provided the diabetes is well-managed and diagnosed after a certain age. However, if you suffer from diabetic neuropathy (nerve pain), Royal Neighbors will likely move you to a graded plan, whereas other specialized carriers might still offer you first-day coverage.
What happens if I outlive my Royal Neighbors burial policy?
You cannot outlive a Royal Neighbors burial policy because it is a permanent whole life contract that stays in effect until you pass away. Unlike term insurance, which expires after a set number of years, this policy is guaranteed to pay out regardless of how long you live, provided you keep your premiums current. If you reach age 100 or 121 (depending on the specific contract), the company may even pay the full death benefit to you directly as an “endowed” policy.
