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Getting the right life insurance is important for your financial future. To help you decide, here's information about financial products we offer.

Types of Life Insurance

ProductWhat It's Used ForTax Advantaged#1Fixed  AmountGuaranteed Cash Value Over TimeSet Premium Payment Schedule
Whole Life and Youth Whole LifeLife-long (permanent) protection, coverage
Most affordable at young ages
Single Premium Whole LifeLife-long (permanent) protectionYesYesYes
Simplified Issue Whole LifeLife-long (permanent) protection
lower death benefit  primarily for final expenses
Term LifeProtection for a specific time periodYesYesYes

What do these terms mean?

Tax Advantaged#1:

  • Death benefits paid under a life insurance are generally income tax-free to the beneficiaries.
  • Whole life insurance builds cash value that is available to you when you need it by taking out a certificate loan#2.

Fixed Amount: Premium payments are paid throughout the duration of the Policy and will remain the same regardless of the increase in age or health condition. In regards to Term insurance, the fixed premium payments are available for 10, 15, and 30 years. Single Premium Whole Life requires only one premium payment.

Guaranteed Values over Time: Since the certificate covers the insured person's entire life, there's a guaranteed payout amount when they pass away. There may also be additional cash value accumulated over their life.

Set Premium Payment Schedule: You can select the frequency of premium payments (monthly, quarterly, or annually). Once the certificate is fully paid, the premium payments will stop.

Royal Neighbors does not provide tax or legal advice. Tax laws are subject to interpretation and legislative change. Please consult with a qualified tax professional for information specific to your personal situation.
Loans taken against a certificate can have adverse effects if not managed properly. An outstanding loan could potentially terminate the certificate if the principal, plus accrued interest equals or exceeds the cash value of the certificate. Outstanding loan balances will be charged interest at the rate stated in the certificate. Accrued interest on the loan is payable at the end of each certificate year. Certificate loans, including any accrued interest, must be repaid in cash or from the certificate values upon termination of the certificate or the death of the insured. Repayment of loans from certificate values (other than death proceeds) can potentially trigger a tax liability. Certificate owners should consult with their tax advisor about the potential impact of any loan.

#1Royal Neighbors does not provide legal or tax advice. The information provided is not intended as specific tax or legal advice. Please consult with a legal or tax professional regarding your individual situation.
#2Loans will decrease the death proceeds and the cash surrender value and may cause the insurance to terminate if the loan is not repaid. Loans may generate an income tax liability. Interest is charged on the outstanding loan amount.

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How Much Life Insurance Do I Need?

How Much Life Insurance Do I Need?

My Life Insurance Coverage: Too Much, Too Little, or Just Right?

 My Life Insurance Coverage: Too Much, Too Little, or Just Right?
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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).

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coverage options


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.

  • Immediate Needs N/A
  • Mortgage Amount: N/A
    Other Debts: N/A
    Funeral Expenses:N/A
  • Long-term Needs N/A
  • College Costs: N/A
    Total Income:N/A
  • Total Needs N/A
  • Immediate Resources N/A
  • Investment Assets N/A
    Life Insurance Proceeds N/A
  • Long-term Resources N/A
  • Partner's Earnings N/A
    Social Security N/A
  • Total Resources N/A
Additional Life Insurance Needed
  • Your total needs minus your total resources means you need N/A

Income Replacement Estimate

This chart estimates how much life insurance your loved ones may need to replace your income and maintain their current standard of living. Your dependents may be eligible to collect Social Security income benefits, which are included in the calculation below. The “Insurance Needed” column does not include financial needs such as paying off debt or paying for college.
Year Partner Age Partner Income S.S. Income Available Income Desired Income Surplus/Shortfall Available Resources Insurance Needed

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.

  • Amount for community college: 2 years @ $3,435/year (tuition and fees only)
  • Amount for public university: 4 years @ $19,548/year (tuition, fees, room and board)
  • Amount for private university: 4 years @ $43,921/year (tuition, fees, room and board)

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.”

The specified form no longer exists or is currently unpublished.
Form #: ; Rev.