Royal Neighbors Final Expense Product Review [For Agents Only]

Are you a final expense agent interested in adding Royal Neighbors Life Insurance to your final expense insurance companies line-up?

Do you want a “No BS” overview from a field-tested agent on how this company’s final expense product performs?

If so, you have found the right article!

I’ll be discussing at length how Royal Neighbors’ final expense product stacks up, why final expense agents should consider it, and give you my opinion on its pros and cons as a producing agent selling final expense.

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Overview Of Royal Neighbors Of America’s Final Expense Product

Application Type: Paper App (Interview conducted *after* face-to-face appointment) or Voice Signature paperless app (conducted *during* the point of sale meeting) or NEW e-app with *instant decision*!
Agent Support Hotline:  Sales Support:  (800) 627-4762×1  (Monday-Friday 8AM to 5PM CST). Underwriting Support: (800) 627-4762×1, 1
Point Of Sale Interview Required? Included in the voice authorization application. If doing paper application, will be completed by Underwriting after the point of sale meeting is over. To conduct a voice authorization application, call Call (866) 281-9228 (hours of operation – 8 a.m.–9 p.m. Central Time, Monday–Friday and 8 a.m.–3 p.m. Central Time on Saturday)
State Availability: Available in all U.S. states EXCEPT AK, AL, HI, LA, MA, NH, & NY.
Paper Application Submission: Voice application is submitted automatically at the conclusion of the interview. Fax in paper applications and replacement forms to (866) 787-1450.
Average Policy Issue Turnaround Time: 24-48 hours
Commission Payout: On issue, typically a day or two after your policy is approved over the phone!
Can You Sell Over The Phone? YES!
Advancing Available? Yes – 9 months advance for those that qualify.
How Far In Advance Can The First Draft Be? 30 days from application date
Frequency Of Commission Payout: Daily
Pays Commission On Policy Fee? Yes
Age Rating: Age based on application date
Chargebacks On Death: Prorated – you keep earned commissions and payback any unearned commissions assuming it’s not rescinded
Chargebacks On Lapses: Prorated. Keep what you earn and payback any unearned commissions.
Underwriting Overview: MIB, Rx Check
Agent Guide: Download here
Requires E&O? No
Acceptable Payment Methods? Bank account drafts only
Face Amount Issue Limits Plans:

Simplified Issue Whole Life Product

  • Issue Ages: 50-85
  • Minimum issue amount: $5,000
  • Maximum issue amount: $25,000

Graded Death Benefit Whole Life Product

  • Issue Ages: 50-85 (50-78 in WA only)
  • Minimum issue amount: $5,000
  • Maximum issue amount: $10,000

Available Riders: Accelerated Living Benefit (ALB) – Terminal Condition and Permanent Confinement – (not available in all states – contractual provisions may vary by state)
Cover Foreign Nationals? Must have (a) a Social Security number, (b) U.S. Citizen Status, or (c), a current Green Card holder.
Height-Weight Chart? Royal Neighbors Life Insurance does *not* review height and weight for an underwriting determination!
Sample Final Expense Application: Download here
Rate GuideDownload here (scroll down to find rate tables by age and face amount)
Prescription/Rx Guide: Download here
Underwriting Advantages:

  • No height-weight guidelines to determine insurability.
  • Complete telephonic application process eliminates headaches caused from go-backs and amendment requirements.
  • Receive an instant decision yay or nay at the conclusion of the phone call!
  • Agents paid on issue, which means you are paid within 1 to 2 days after completing the phone interview. Nice!
  • Flexible with certain blood thinners like warfarin and coumadin for Level coverage.
  • Extremely diabetic friendly. Insulin use prescribed for first time at or *after* age 30 eligible for Level coverage! Plus, diabetic neuropathy is OK for Level coverage, too!
  • Liberal on heart/cancer history: 2-year look-backs for Level coverage on cardiac events/diseases, and cancer remission/removal.

Application Health Questions

Below you’ll find a complete listing of each health question on both the Simplified Issue and Graded Death Benefit products.

If you’d prefer to download a sample copy of the application, please download it here.

1. Has the proposed Insured used tobacco in any form in the last 12 months?

If any answer to questions 2 through 7 is YES, the Proposed Insured is not eligible for ANY coverage.

2. Is the Proposed Insured currently:
a. Hospitalized, in a nursing facility, or receiving Hospice Care?
b. Confined to a wheelchair, bed, or using oxygen equipment to assist in breathing?
3. Has a member of the medical profession ever diagnosed or treated the Proposed Insured for Acquired Immune Deficiency Syndrome (AIDS), AIDS Related Complex (ARC), or any immune deficiency disease; or has the Proposed Insured tested positive for the Human Immunodeficiency Virus (HIV)?
4. Has the Proposed Insured ever been diagnosed as having or been treated for:
a. Congestive heart failure, or had or been recommended to have an organ transplant?
b. Insulin shock, diabetic coma, amputation caused by disease, or taken insulin shots prior to age 30?
c. Dementia, Alzheimer’s Disease, or mental incapacity?
5. During the past 18 months has the Proposed Insured been diagnosed as having:
a. Stroke, aneurysm, cardiomyopathy, or circulatory surgery?
b. Angina (chest pain), heart attack or failure, or heart surgery?
6. During the past 24 months, has the Proposed Insured been diagnosed as having, or been treated for:
a. Internal Cancer, Melanoma, or Leukemia?
b. Cirrhosis, liver disease, kidney failure (including dialysis), chronic kidney disease, or systemic lupus?
7. During the past 18 months, has the Proposed Insured been diagnosed as having:
a. A condition expected to result in death within 12 months?
b. Been advised by a medical professional to have any diagnostic testing which has not been completed or for which the results have not been received?
c. Been recommended by a physician to have treatment or counseling for alcohol or drug abuse?

If question 8 or 9 is YES, only Graded Death Benefit is available.

8. During the past 24 months, has the Proposed Insured been diagnosed as having, or been treated for:
a. Stroke, angina (chest pain), heart attack, or cardiomyopathy?
b. Heart or circulatory surgery (including pacemaker, heart valve replacement, bypass, angioplasty, stent implant, or any procedure to improve circulation to the heart or brain)?
9. During the past 24 months, has the Proposed Insured been diagnosed as having, or been treated for:
a. Emphysema, chronic obstructive pulmonary disease (COPD), or tuberculosis (TB)?
b. Neuromuscular disease (including Multiple Sclerosis, Lou Gehrig’s Disease, Epilepsy, or Parkinson’s Disease)?

Rates

Below you’ll find charts for sample rates for both the Simplified Issue product.

NOTE: Use the “next” button in the lower right-hand corner underneath each rate chart to cycle through the available age ranges.

Non-Smoker, Simplified Issue Level Coverage - Monthly Rates $5000, $10000, and $15000

Issue$5,000$5,000$10,000$10,000$15,000$15,000
AgeMFMFMF
50$21.11$18.16$39.61$33.71$58.11$49.26
51$21.81$18.51$41.01$34.41$60.21$50.31
52$22.46$18.91$42.31$35.21$62.16$51.51
53$23.16$19.31$43.71$36.01$64.26$52.71
54$23.81$19.71$45.01$36.81$66.21$53.91
55$24.46$20.06$46.31$37.51$68.16$54.96
56$24.86$20.16$47.11$37.71$69.36$55.26
57$25.21$20.21$47.81$37.81$70.41$55.41
58$25.61$20.31$48.61$38.01$71.61$55.71
59$25.96$20.36$49.31$38.11$72.66$55.86
60$26.36$20.41$50.11$38.21$73.86$56.01
61$27.21$21.06$51.81$39.51$76.41$57.96
62$28.11$21.71$53.61$40.81$79.11$59.91
63$28.96$22.36$55.31$42.11$81.66$61.86
64$29.81$22.96$57.01$43.31$84.21$63.66
65$30.71$23.61$58.81$44.61$86.91$65.61
66$32.31$24.71$62.01$46.81$91.71$68.91
67$33.91$25.81$65.21$49.01$96.51$72.21
68$35.51$26.91$68.41$51.21$101.31$75.51
69$37.11$28.01$71.61$53.41$106.11$78.81
70$38.71$29.11$74.81$55.61$110.91$82.11
71$42.26$31.51$81.91$60.41$121.56$89.31
72$45.81$33.96$89.01$65.31$132.21$96.66
73$49.36$36.36$96.11$70.11$142.86$103.86
74$52.96$38.76$103.31$74.91$153.66$111.06
75$56.51$41.21$110.41$79.81$164.31$118.41
76$60.86$44.26$119.11$85.91$177.36$127.56
77$65.16$47.31$127.71$92.01$190.26$136.71
78$69.51$50.41$136.41$98.21$203.31$146.01
79$73.86$53.46$145.11$104.31$216.36$155.16
80$78.21$56.51$153.81$110.41$229.41$164.31
81$84.11$60.36$165.61$118.11$247.11$175.86
82$90.01$64.16$177.41$125.71$264.81$187.26
83$95.86$68.01$189.11$133.41$282.36$198.81
84$101.76$71.86$200.91$141.11$300.06$210.36
85$107.66$75.71$212.71$148.81$317.76$221.91

Non-Smoker, Simplified Issue Level Coverage, Monthly Rates, $20,000 and $25,000

Issue$20,000$20,000$25,000$25,000
AgeMFMF
50$76.61$64.81$95.11$80.36
51$79.41$66.21$98.61$82.11
52$82.01$67.81$101.86$84.11
53$84.81$69.41$105.36$86.11
54$87.41$71.01$108.61$88.11
55$90.01$72.41$111.86$89.86
56$91.61$72.81$113.86$90.36
57$93.01$73.01$115.61$90.61
58$94.61$73.41$117.61$91.11
59$96.01$73.61$119.36$91.36
60$97.61$73.81$121.36$91.61
61$101.01$76.41$125.61$94.86
62$104.61$79.01$130.11$98.11
63$108.01$81.61$134.36$101.36
64$111.41$84.01$138.61$104.36
65$115.01$86.61$143.11$107.61
66$121.41$91.01$151.11$113.11
67$127.81$95.41$159.11$118.61
68$134.21$99.81$167.11$124.11
69$140.61$104.21$175.11$129.61
70$147.01$108.61$183.11$135.11
71$161.21$118.21$200.86$147.11
72$175.41$128.01$218.61$159.36
73$189.61$137.61$236.36$171.36
74$204.01$147.21$254.36$183.36
75$218.21$157.01$272.11$195.61
76$235.61$169.21$293.86$210.86
77$252.81$181.41$315.36$226.11
78$270.21$193.81$337.11$241.61
79$287.61$206.01$358.86$256.86
80$305.01$218.21$380.61$272.11
81$328.61$233.61$410.11$291.36
82$352.21$248.81$439.61$310.36
83$375.61$264.21$468.86$329.61
84$399.21$279.61$498.36$348.86
85$422.81$295.01$527.86$368.11

Smoker, Simplified Issue Level Coverage - Monthly Rates $5000, $10000, and $15000

Issue$5,000$5,000$10,000$10,000$15,000$15,000
AgeMFMFMF
5027.2124.5151.8146.4176.4168.31
5128.1125.0653.6147.5179.1169.96
5229.0125.6655.4148.7181.8171.76
5329.9626.2657.3149.9184.6673.56
5430.9126.8159.2151.0187.5175.21
5531.8127.4161.0152.2190.2177.01
5632.4627.5662.3152.5192.1677.46
5733.1127.7163.6152.8194.1177.91
5833.7627.8664.9153.1196.0678.36
5934.4128.0166.2153.4198.0178.81
6035.0628.2167.5153.8199.9679.41
6136.6129.1170.6155.61104.6182.11
6238.1630.0673.7157.51109.2684.96
6339.7130.9676.8159.31113.9187.66
6441.2631.9179.9161.21118.5690.51
6542.8132.8683.0163.11123.2193.36
6645.5634.3688.5166.11131.4697.86
6748.3135.9194.0169.21139.71102.51
6851.0137.4699.4172.31147.81107.16
6953.7639.01104.9175.41156.06111.81
7056.5140.51110.4178.41164.31116.31
7161.1643.21119.7183.81178.26124.41
7265.8145.91129.0189.21192.21132.51
7370.4648.61138.3194.61206.16140.61
7475.1651.31147.71100.01220.26148.71
7579.8154.01157.01105.41234.21156.81
7684.7157.61166.81112.61248.91167.61
7789.6661.21176.71119.81263.76178.41
7894.6164.81186.61127.01278.61189.21
7999.5168.41196.41134.21293.31200.01
80104.4672.06206.31141.51308.16210.96
81112.5177.16222.41151.71332.31226.26
82120.5682.26238.51161.91356.46241.56
83128.5687.36254.51172.11380.46256.86
84136.6192.51270.61182.41404.61272.31
85144.6697.61286.71192.61428.76287.61

Smoker, Simplified Issue Level Coverage - Monthly Rates - $20,000 and $25,000

Issue$20,000$20,000$25,000$25,000
AgeMFMF
50101.0190.21125.61112.11
51104.6192.41130.11114.86
52108.2194.81134.61117.86
53112.0197.21139.36120.86
54115.8199.41144.11123.61
55119.41101.81148.61126.61
56122.01102.41151.86127.36
57124.61103.01155.11128.11
58127.21103.61158.36128.86
59129.81104.21161.61129.61
60132.41105.01164.86130.61
61138.61108.61172.61135.11
62144.81112.41180.36139.86
63151.01116.01188.11144.36
64157.21119.81195.86149.11
65163.41123.61203.61153.86
66174.41129.61217.36161.36
67185.41135.81231.11169.11
68196.21142.01244.61176.86
69207.21148.21258.36184.61
70218.21154.21272.11192.11
71236.81165.01295.36205.61
72255.41175.81318.61219.11
73274.01186.61341.86232.61
74292.81197.41365.36246.11
75311.41208.21388.61259.61
76331.01222.61413.11277.61
77350.81237.01437.86295.61
78370.61251.41462.61313.61
79390.21265.81487.11331.61
80410.01280.41511.86349.86
81442.21300.81552.11375.36
82474.41321.21592.36400.86
83506.41341.61632.36426.36
84538.61362.21672.61452.11
85570.81382.61712.86477.61

If you would like to review rates for Graded coverage, or calculate a different rate, please download the rate chart here.

Thoughts On Selling Royal Neighbors Of America Final Expense

I’ve sold final expense since 2011 and can personally attest to the importance of prioritizing burial insurance carriers with flexible underwriting, easy application submission process, quick pay, and extra perks to offer the client when selling.

This is the same perspective I encourage my new agents to have that work with me in my national agency.

I’m happy to report that Royal Neighbors’ final expense product line-up hits high marks in all categories, enough that the carrier can easily be made as a primary, go-to company for many of your prospects.

I’ll explain in more detail how I mean below:

Flexible Underwriting

Royal Neighbors Life Insurance has always understood that simplified underwriting, in combination with a few important health niches, makes primary final expense carrier selection for the agent easier to choose.

While I advocate for the independent agent to carry multiple burial insurance carriers, it’s important for each agent to choose a “focus” carrier that he intentionally tries to send as much business to as possible.

Doing so gives you more recognition with the company, and gives you a better chance to qualify for convention trips.

All important things in my eyes.

Bottom line, Royal Neighbors Of America has some of the best underwriting options for our final expense prospects. For example:

  • Diabetic-Friendly Company: I am hard-pressed to find another carrier that matches Royal Neighbors’ flexibility with diabetes. Diabetics that started insulin at age 30 or LATER may qualify for the first-day full coverage product. That’s incredible!

    Even better, diabetic neuropathy, a common knock-out or rate-up question, is not even asked on the Royal Neighbors’ final expense application!

    This is good news because many diabetic prospects are taking insulin, treating diabetic neuropathy, or BOTH. And having Royal Neighbors’ final expense product in your corner will make a SUBSTANTIAL difference in getting those clients issued at competitive, first-day full coverage rates.
  • Cardiac/Cancer History Friendly: Royal Neighbors final expense does a great job on certain cardiac event history. As long as your client has exceeded 2 years since his last stroke, heart attack, stent, or other cardiovascular procedure, then he may be eligible for first-day full coverage.

    Further, if you’re client is prescribed blood thinners like warfarin, coumadin, plavix, or clopedigril, Royal Neighbors Life Insurance counts that as “maintenance” medication, meaning they’ll STILL accept your prospect for first-day full coverage, assuming they’ve met the 2 year look-back requirement.

    Same goes for cancer. If your client’s cancer has been in remission or removed 2+ years ago, they may qualify for first-day full coverage at Royal Neighbors’ best final expense rates.
  • No Height-Weight Chart: No more worrying whether or not your client does not fit the height-weight guidelines. Royal Neighbors Of America does NOT factor in your client’s weight or height in determining an underwriting decision.

Super Simple Application Process

Royal Neighbors final expense exceeds expectations with a simple-to-use application process that eliminates frustrating amendments and second appointments to get missed signatures or dates, all while giving you a yes/no underwriting decision on the spot, while with your client!

Using their voice authorization process, the carrier offers an entirely telephonic application write-up experience when you’re face-to-face with the prospect.

This means you have no paper application to submit as the interviewer creates and types up the application for you.

Better yet, at the conclusion of the phone interview, the interviewer will give you an underwriting decision (Level/Graded/Declined), and if accepted, will issue the policy IMMEDIATELY.

As of late, Royal Neighbors Life Insurance also rolled out an entirely electronic based application that provides an INSTANT decision upon submission!

I can’t stress how awesome of a feature this is! Gone are the days of completing an application on paper, then waiting to see what the underwriting decision is a few days later (or worse, having to visit the client AGAIN to get a missed signature or date).

With Royal Neighbors Of America’s easy to use application processes, you truly know before you go to the next appointment whether or not your prospect is approved, and can pivot to other carriers if the approval does not go through.

Which leads me to my next point…

Pays On Issue!

Royal Neighbors final expense pays you your advance within the next 1 to 2 days after the client is approved for coverage.

This means faster pay for you, and better cash flow terms to manage your final expense lead expenses.

Very important for new agents, especially.

Fraternal Benefits

With Royal Neighbors Life Insurance being a fraternal organization, they offer their members certain fraternal benefits to help during times of need in all walks of life.

Here’s a quick list of available fraternal benefits all members have access to when they are insured through Royal Neighbors Of America:

Member Relief Fund: Royal Neighbors Of America members are eligible for a $200 payout in cases of “extreme” financial need like illness, natural disasters, etc. Limitations and restrictions apply. Research more here.

Vision Savings, Hearing Aid Services, and Dental Savings: Save from 10%-60% on glasses, contacts, laser surgery, exams and more. See more here.

Scholarship Fund: Your client’s child or grandchild may be eligible for a Royal Neighbors Of America scholarship as a member. More details here.

Drawbacks

As with all final expense companies, there are no “end-all, be-all” carriers that answer every situation you’ll run into with your prospects.

Therefore, I think it’s important to note limitations with each carrier so you’re aware of when you may consider other burial insurance companies to write for when these situations arise.

Overall, Royal Neighbors’ final expense product is excellent, thus the list of drawbacks is relatively short. Let’s take a look…

Premium Rates

Premium rates at best are mid-priced, at worst, high priced.

If you write a prospect, male or female, age 50 to 60, you’ll notice running quotes that the rates are near the bottom of the list.

As you get into ages 60 to 80, Royal Neighbors’ final expense premiums become more competitive, but still higher than many other burial insurance options.

Why does this matter?

Relative pricing motivates many of our prospects to replace existing coverage with lower-priced coverage.

With virtually all of our prospects on fixed incomes, they take a 20% savings in premium – or a 20% increase in coverage for the same price their paying – very seriously.

Be aware of this, especially if you sell Royal Neighbors Life Insurance to the under 60 crowd.

And regardless of who you sell to, it’s important to “sell the sizzle,” not just the steak.

Stress the importance of how the member benefits save your client’s money and add value to their lives.

This will build a defense around your prospect so agents coming in several months later will have a harder time unseating you.

Summary

Overall, Royal Neighbors Life Insurance offers an excellent final expense product that hits every hot button agents have – decent pricing for non-smokers 60 and older, a super-simple application submission process, quick pay, and some of the best underwriting a final expense agent could ask for.

Want To Sell Royal Neighbors’ Final Expense Product?

Click here to learn more about joining David Duford's national agency.

To learn more about contracting, reach out here.

We have access to all sorts of benefits for final expense agents, including:

  • Top contracts for new and experienced agents. David Duford recruits and operates at FMO/IMO levels, giving him buying power to offer commission levels to agents and agencies others cannot match.
  • Affordably-priced, high-quality lead programs for direct mail, Facebook, and telemarketing leads. David does not profit from the sale of leads, only referring you to sources with a track record of success.
  • An endless supply of top-notch prospecting and sales training at your fingertips.
  • Weekly sales training calls with David, ride-along training opportunities with David and his team, and direct phone/text access to David when you have case placement and sales questions (yes, David answers his own phone =).
  • Additional training and support for agents interested in cross-selling Medicare Advantage, annuities, or growing their own insurance agency.

Reach out to David by starting here. Talk soon!

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