Certificate Frequently Asked Questions
- My certificate has lapsed. Can it be reinstated?
- I pay for a certificate, but I am not the owner or the insured. Can I obtain information other than payment information regarding the certificate?
- How can I increase the amount of my coverage?
- Is there any way I can make my traditional life certificate “paid-up” so I do not have to make any more premium payments?
- Does my dividend have to be paid in check form?
- Can I borrow money against my life insurance certificate?
- How can I repay the loan?
- What happens if I cannot afford to repay the loan?
- How do I establish an automatic Required Minimum Distribution (RMD) on my Royal Neighbors of America IRA?
- If I am a beneficiary, how do I make a death claim?
- How can I change my beneficiary designation?
1. My certificate has lapsed. Can it be reinstated?
You have five years from the suspension date to reinstate a lapsed certificate with evidence of insurebility. Contact the Customer Support Center to request reinstatement information at (800) 627-4762, ext. 4110, or by email.
2. I pay for a certificate, but I am not the owner or the insured. Can I obtain information other than payment information regarding the certificate?
No. Due to privacy laws, certificate information can be given only to the owner of the certificate.
3. How can I increase the amount of my coverage?
Universal Life certificates: Contact our Member Sales team at (866) 845-6665 or by email.
Traditional life certificates: You may apply for new insurance by contacting our Member Sales team at (866) 845-6665 or by email. You may be able to increase the amount of coverage provided by your current certificate by applying dividends to purchase paid-up additional insurance. To elect the paid-up additional insurance option, please print out and complete the election of dividend option form. Mail the completed form to:
Customer Support Center
Royal Neighbors of America
230 Sixteenth St.
Rock Island, IL 61201-8645
For more information, please contact the Customer Support Center at (800) 627-4762, ext. 4150 or by email.
4. Is there any way I can make my traditional life certificate “paid-up” so I do not have to make any more premium payments?
Depending on the plan of insurance, the cash value of the certificate could be used to provide reduced paid-up insurance. This paid-up insurance would provide a lesser amount of permanent life insurance protection without further payment of premiums and it would continue to be eligible for dividends. In lieu of reduced paid-up insurance, it may also be possible to change the certificate to fully paid-up by using the dividends accumulating with interest or the paid-up additional insurance purchased with dividends. For more information about either of these two options, please call the Customer Support Center at (800) 627-4762, ext. 4150, or by email.
5. Does my dividend have to be paid in check form?
No. We offer several other dividend options, depending on your plan of insurance. The most common option requested is to apply the dividend to purchase paid-up additional insurance, which increases the death benefit. If you would like more information on changing your dividend option, please call the Customer Support Center at (800) 627-4762, ext. 4150, or by email.
To elect the paid-up additional insurance or any other dividend option, please print out and complete the election of dividend option form. Mail the completed form to:
Customer Support Center
Royal Neighbors of America
230 Sixteenth St.
Rock Island, IL 61201-8645
6. Can I borrow money against my life insurance certificate?
If you own a life insurance certificate that builds cash value, such as traditional or universal life, you can take out a loan against the cash value you’ve built up. If you die before paying back the loan, the balance you owe will be deducted from the death benefit that goes to your beneficiary. Also, if the amount of the loan plus interest exceeds the cash value, the certificate will terminate. Therefore, it is in your best interest to pay back loans. If you own a term life certificate, you cannot take out a loan against it because term life certificates do not build cash value. For information on the loan value of a certificate, please call the Customer Support Center at (800) 627-4762, ext. 4150, or by email. Under the loan option, the insured would have insurance protection for the face amount of the certificate, plus dividends if any, minus any loan indebtedness. To apply for a loan, please print out and complete the certificate of loan form. Mail the completed form to:
Customer Support Center
Royal Neighbors of America
230 Sixteenth St.
Rock Island, IL 61201-8645
7. How can I repay the loan?
Every effort should be made to repay the debt to restore the certificate to its full face amount. Interest on a certificate loan accrues daily at the rate specified in the certificate and becomes payable each year on the anniversary date of the register date of the certificate. You may make loan principal payments of $5 or more at any time while the certificate is in force with no premium in default. You can also contact our office and be billed through the mail for the loan payments. Remittances should be indicated as loan payments and sent directly to our Home Office. If you are interested in having loan payments withdrawn from your bank account, please print out and complete a pre-authorized collection plan form (form 1025-B) and mail it with a voided check from your checking account or the encoded deposit slip for a savings account to:
Premium Accounting Department
Royal Neighbors of America
230 Sixteenth St.
Rock Island, IL 61201-8645
8. What happens if I cannot afford to repay the loan?
If the interest is not paid when it becomes due, it is added to and becomes a part of the debt. If the total debt, which includes the principal plus accrued interest and any other indebtedness, at any time equals or exceeds the cash value of the certificate, the certificate will be terminated. Therefore, if you elect a maximum loan, it would be advisable to immediately begin making loan payments to restore the certificate to its full value. For traditional plans of insurance, the dividend option could also be changed to have future dividends applied as payments on the loan. If you are interested in this option, please print out and complete the election of dividend option form (Forms 1471 and 1472). Make certain the appropriate box is filled in and mail to:
Customer Support Center
Royal Neighbors of America
230 Sixteenth St.
Rock Island, IL 61201-8645
9. How do I establish an automatic Required Minimum Distribution (RMD) on my Royal Neighbors of America IRA?
You can set up an automatic payment of your RMD by completing our form, election of automatic required minimum distribution withdrawal (form 710). If you have any questions regarding your RMD or need assistance in completing the form, please contact our Customer Support Center at (800) 627-4762, ext. 4150.
Mail the completed form to:
Customer Support Center
Royal Neighbors of America
230 Sixteenth St.
Rock Island, IL 61201-8645
10. If I am a beneficiary, how do I make a death claim?
If you have recently lost a loved one, please accept our sincere sympathy. We would like to help you through this difficult time by offering the convenience of completing our online report the death of a member form which can be used for notification of the death of the insured or annuitant. If you would rather report this death by phone, you may call our Customer Support Center at (800) 627-4762, ext. 4180. You will need the following information when you report the death: the insured/annuitant’s name, the certificate number(s), and the actual date of death. Upon notification, further instructions will be provided.
To change your beneficiary, first download and print out the request for change of beneficiary form (form 1813W).
When completed, send it to:
Customer Support Center
Royal Neighbors of America
230 Sixteenth St
Rock Island, IL 61201-8645