Royal Neighbors – Mortgage Protection Insurance Review (2024)

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Royal Neighbors of America

Royal Neighbors was founded in 1895 as a woman-led, mission-driven company that was one of the first to offer life insurance policies to women. The company remains committed today to empowering women and local communities. People who purchase policies from Royal Neighbors can get access to specialty programs and resources in addition to joining a national network of volunteers.

Does Royal Neighbors Offer Mortgage Protection Insurance?

Royal Neighbors offers term and whole-life insurance policies. The company cites its term life insurance policy as being an affordable and flexible first step towards protecting a family’s financial future, while its whole life insurance policy offers long-term peace of mind. Unfortunately, Royal Neighbors’ insurance policies do not include mortgage protection insurance.

People often get mortgage protection insurance confused with either mortgage insurance or life insurance. While it could be considered a specialized type of life insurance, mortgage protection policies have nothing to do with mortgage insurance. The former is designed to protect homeowners and their families, while the latter protects only lenders. Mortgage protection insurance works by having the policyholder pay a low monthly premium, then releasing benefits upon the person’s death, disability, or unemployment that are paid directly to the mortgage lender.

Royal Neighbors Mortgage Protection Insurance Cost

The cost of Royal Neighbors life insurance varies depending on the type of coverage a product provides, the age of the policyholder, their intended retirement age, the presence of children in the home, and other factors, many of which are exclusive to this community-focused company. Because Royal Neighbors doesn’t offer mortgage protection insurance, though, there is no reason to speculate as to its potential cost were they to begin selling this popular product.

It’s easier to determine a general range of costs for mortgage protection insurance than it is for life insurance. Monthly premiums start at $5 and will vary based on factors such as policy amount, age, gender, general health, smoking status, and the location of the home covered under the policy. Some people also choose to add riders, which increases their monthly payments.

Riders for Royal Neighbors Mortgage Life Insurance

Riders are add-ons that offer policyholders access to different ways of customizing their insurance products. They include an accelerated death benefit, a disability waiver, a children’s rider, and guaranteed insurability.

Mortgage protection insurance companies typically offer riders, as well. In this case, they usually include disability and unemployment riders. Unemployment riders allow policyholders to have six months of mortgage payments covered while they look for work if they lose their jobs involuntarily due to a covered reason. This kind of rider is not generally available with traditional life insurance products.

The disability rider allows policyholders to have mortgage payments made if they become unable to work or make payments due to a newly developed disability. Just keep in mind that there are waiting periods for both disability and unemployment riders. While it’s a good idea for people who are concerned about a family medical history that increases their chances of developing a disabling condition or the precarious nature of their job markets would do well to purchase these riders, they won’t kick in right away.

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