Whether you’re just starting a family or heading toward retirement, life is full of ups and downs and the unexpected.
Read more about Life Insurance
Royal Neighbors of America is committed to improving the lives of our members by providing life insurance and annuities products, savings offers designed to make the most of your budget, and philanthropic and volunteer programs to make a positive impact in your community.
Royal Neighbors’ responsible growth strategies ensure we can meet our obligations to Certificateholders while funding our philanthropic initiatives. In 2020, despite the far-reaching effects of the pandemic, we achieved all-time record highs for product sales, total revenue, and Social Good! This demonstrates our success in fulfilling all critical strategic objectives.
We are pleased to report continued financial stability, with revenues of $200.4 million and total net admitted assets of $1.1 billion. Our surplus to net admitted assets ratio of 17% (higher than the industry average of 6%) indicates our sustained ability to meet our obligations to our membership. In addition, the independent credit rating agency AM Best increased our rating to A Excellent (3rd highest out of 13) as of December 2020.
We are especially proud of the efforts by our members to continue to support their neighbors and communities during an unprecedented year. Together, we found new ways to make a difference, generating a new high in Social Good (how we measure our philanthropic impact) of $19.3 million, including more than 287,000 hours of volunteer service.
Our success in 2020 reflects our dual commitment of providing insurance protection and opportunities to make a difference in communities. The charitable passion and ongoing commitment to women’s empowerment by our membership is an enduring principle of Royal Neighbors, and one we are proud to support.
MEMBER SAVINGS
$1.1M saved by members on discounted health, wellness, legal services, and retail services provided to members
FINANCIAL HIGHLIGHTS
as of December 31 | 2020 | 2019 |
| Net admitted assets | $1,119,852 | $1,104,742 |
| Certificateholders' surplus | $187,054 | $194,680 |
| Premium income, net of reinsurance | $139,403 | $121,569 |
| Revenue (including capital gains) | $200,428 | $181,176 |
| Net income (loss) | 2,056 | 8,305 |
| (dollars in thousands) |
COMMUNITY REACH
220,000+ Members improving communities
200+ Chapters participating in grassroots volunteering
280,000+ Volunteer Hours to our communities
SOCIAL GOOD
19M+ Social Good impact
$175K Scholarships awarded
$100K Nation of Neighbors℠ women's empowerment grants awarded
(dollars in thousands)
| 2020 | 2019 | |
Cash and short-term investments | $8,676 | $19,036 |
Investments | 1,076,144 | 1,052,623 |
Other assets | 35,032 | 33,083 |
Total admitted assets | $1,119,852 | $1,104,742 |
Insurance reserves and claims | $868,831 | $836,290 |
Other liabilities | 63,967 | 73,772 |
Total reserves and liabilities | $932,798 | $910,062 |
Total Certificateholders' surplus | 187,054 | 194,680 |
Total insurance reserves, liabilities and surplus | $1,119,852 | $1,104,742 |
| 2020 | 2019 | |
Premium income, net of reinsurance | $139,403 | $121,569 |
Investment income | 46,414 | 51,022 |
Reinsurance allowances and miscellaneous income | 14,611 | 8,431 |
Total income | $200,428 | $181,022 |
Benefits paid or provided | $132,618 | $113,919 |
Commissions | 37,368 | 28,575 |
General and administrative expenses | 29,047 | 30,377 |
Net income (loss) before net realized capital gains (losses) | 1,395 | 8,151 |
Net realized capital gains (losses) | 661 | 154 |
Net income (loss) | $2,056 | $8,305 |
a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder).
The calculations contained within this calculator are specific to Royal Neighbors of America. It is intended to estimate an amount of life insurance coverage if death occurred in the near future. It is not a recommendation for specific coverage amounts. Your financial needs may differ from the estimates. Royal Neighbors does not guarantee that the amount illustrated here will meet your financial needs. You are responsible for selecting the appropriate amount of coverage. To evaluate your specific needs, please contact Royal Neighbors directly at (866) 845-6665.
| Year | Partner Age | Partner Income | S.S. Income | Available Income | Desired Income | Surplus/Shortfall | Available Resources | Insurance Needed |
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Calculations include your answers to the previous questions, in addition to the following: 3% investment return; 2.6% anticipated inflation rate; $8,500 for funeral expenses which is based on the national median cost for an adult funeral in 2014 according to the National Funeral Directors Association1; 75% of your annual combined income for desired annual income needs; and 15 years for the number of years’ income needed or the calculation of the number of years it will take your youngest child to complete higher education, whichever is greater. Social Security benefits were factored based on the age of your youngest children (up to 4). Immediate needs include your mortgage, other debts, and $8,500 for funeral expenses.
College cost estimates are based on the following parameters (based on data provided by [College Board] . The inflation rate for college costs (5.48% annually) is based on the Bureau of Labor and Statistics Consumer Pricing Index average from January 1996-June 2016. This rate will factor into college cost assumptions for future years, adjusted annually.
1 “The national median cost of a funeral with viewing and burial for calendar year 2014 was $7,181. If a vault is included, something that is typically required by a cemetery, the median cost is $8,508. The cost does not take into account cemetery, monument or marker costs or miscellaneous cash-advance charges, such as for flowers or an obituary.” http://www.nfda.org/news/statistics
