Innovative Financial Group's President of Life, Don Fransko, welcomes Royal Neighbors' Senior Director of Product Strategy and Development, Juliet Christenson, and Regional Sales Account Manager, Darcy Smith, into the recording studio to share exciting new policy changes, their additional risk classes and new capacity for impact. Learn more about expansions in the underwriting process with changes that make it easier for agents to place business with Royal Neighbors.

Darcy Smith starts the interview by sharing the beginnings of Royal Neighbors as a social club in 1895 by nine visionary women. During this time, women by law were not allowed to carry insurance or even vote.

Darcy emphasized that Royal Neighbors has always supported women and their families. "We are insurance with a difference. We offer not only life insurance and annuities but also benefit programs for our members and our agents." 

Member Benefits

Don highlights that Royal Neighbors differs from most life insurance organizations by offering living benefits that include member programs providing lifeline screenings, relief from disaster and extreme illness, and the Difference Maker Fund, which supports community programs through grants-also included as a member benefit is the Royal Neighbors Scholarship Program.

Once you purchase a policy with Royal Neighbors, you become a member automatically. Darcy emphasizes that once the agent writes their first piece of business with Royal Neighbors, they also become a member. Juliet hints at new member programs on the horizon, so be on the lookout for those.

Expansion of Risk Classes

Juliet shares exciting new policy changes in 2024, including the new Final Expense product, entirely replacing the old one. "We have a new product greater than the one we currently have in production. We have expanded this product from two risk classes to four. We had standard and graded death benefit before and now have a preferred class so that those healthier customers can get a reduced rate with us. We will also have the guaranteed issue perspective. We want to ensure that when an agent goes into the home and has sold the customer on all the values of being a member of Royal Neighbors, they don't have to pivot to another carrier if they find a health condition disclosed during the application process. We can be that one-stop shop, and they can pull Royal Neighbors out with confidence to make an offer at the end."

Don is excited about adding the preferred risk class for healthier clients, "I think it's a brilliant move on the part of Royal Neighbors to offer a better-priced segment of the product." He asks Juliet to outline the parameters:

Preferred Risk

·      Available for people ages 50-75

·      The face amount is $25,000 to $40,000

·      Maximum face amount increased to $40,000

·      Plus, additional riders to the product

Juliet emphasizes the new strategy Royals Neighbors is implementing as an organization: "Increasing our capacity for impact, we believe that impact is both philanthropy as well as the death benefit that is provided from all of these policies. We want to make sure that we have a solution for slightly healthier people so they can get those reduced premiums."

Don asks if specific riders are only tied to the preferred product. Juliets clarifies that additional riders offered by Royal Neighbors can be added to all products except for the Accelerated Death Benefit for Guaranteed Issue.

Don asked how these positive changes will affect pricing. Juliet clarified that the Standard Issue would stay the same and that Royal Neighbors was not looking to increase that premium. "You will see that our preferred rates will be competitive with all our competitors. Our target range is age 65 to 75, and we are going to be ultra-competitive in that space. So, I encourage everyone to check the proposed rates."

Process

Juliet shares that Royal Neighbors has enhanced both the product and the process. Now, the electronic application will have efficiencies built in for the agent. Agents will be able to apply for all the risk classes at once, breeze through the underwriting process, adjust their built-in quoting, and face amounts. Then, when the decision is made, everything is taken care of before the agent leaves the house or ends the call, whichever format they are selling in.

Don asks about Social Security billing. Juliet confirms that Royal Neighbors has had true Social Security billing in place for a while, where the check is drafted on the day it enters their account. This is offered on the new application with the ability to round up.

Don asks about the new riders. Juliet explains that they are keeping the Accelerated Death Benefit, now available in all fifty states. Also important to agents, the Accidental Death Benefit is a component to the sale of the Final Expense product-the unlimited Grandchild rider with conversion options and a Charitable Giving rider. At no cost to the customer, Royal Neighbors donates 1% of their face amount to a charity they choose in their name.

This interview provides a detailed look at how Royal Neighbors has expanded the underwriting process, making it easier for agents to place business.

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For Agent Use Only

 *Ensured Legacy final Expense, Form Series 211311, 211312, and 221309

#1 Coverage ranges will depend on whether the applicant qualifies for either Simplified Issue (Form Series 211311), Graded Death Benefit (Form Series 211312), or Guaranteed Issue (Form Series 221309) – speak with your Royal Neighbors agent for more details.

#2 Accelerated Death Benefit Rider (Form Series 221203). This rider provides a one-time, lump sum payment of a portion of the life insurance certificate's death benefit to the owner if the insured is diagnosed as having a qualified terminal condition or the insured is permanently confined to a qualified nursing home, pursuant to the terms of the rider. Receipt of acceleration of life insurance death benefits may be taxable and may affect the eligibility for public assistance for the Owner, the Owner’s spouse’s, or the Owner’s family. Consult your tax professional or social services agency for details. Not available on Guaranteed Issue (Form Series 221309), the benefits are not assignable, and the rider must be added prior to issuance of the certificate or at the time of reinstatement. Only available on certificates with a face amount of $7,000 or higher. No additional premium required.

#3 Accidental Death Benefit Rider (Form Series 222140). This rider provides for an additional death benefit if the insured's death was a direct result of an accident, pursuant to the terms of the rider. An additional premium is required for this rider.

#4Grandchild Term Insurance Rider (Form Series 221081). The Beneficiary of this rider is the insured of the life certificate to which the rider is attached. This rider terminates either upon the request of the insured or when the base certificate terminates or is paid. = An additional premium is required for this rider.
#5Charitable Giving Rider (Form Series 221113). Subject to the terms and conditions of the rider, and the life insurance certificate, at time of claim, Royal Neighbors will pay a single lump sum charitable benefit to the 501(c)(3) charitable organization designated by the owner of the certificate. The charitable benefit amount will be the lesser of one-percent of the face amount of the certificate or $1,000. There is no additional premium for this rider.
                                                                                                                
This is not a funeral or burial contract, and does not specifically cover funeral goods and services. The death benefit is paid to the designated beneficiary(s) who may use the proceeds for any purpose. This life insurance does not guarantee that the proceeds will be sufficient to pay for any particular goods or services, nor that those goods or services will be provided by any particular provider.
Royal Neighbors of America® (NAIC #57657), is an Illinois corporation and is licensed in all states and the District of Columbia, except AL, AK, HI, LA, MA, NH, NY. Not all products are available in all states. Contractual provisions and limitations may vary by state.