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Royal Neighbors of America

Form series 200612A and 200613AFor agent use only – not to be used for consumer solicitation purposes

Form 2996-C; Rev. 6-2011

Not available in all states. Contractual provisions and limitations may vary by state.

Neighbors SIWLSimplified Issue Whole Life

Neighbors GDBGraded Death Benefit Whole Life

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Why Simplified Issue or Graded Death Benefit Whole Life?

● Excellent product for final expense planning

● Affordable

● Simple yes/no application

● Buyers may qualify for Graded Death Benefit even if they are not eligible for Simplified Issue Whole Life

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Both Plans Offer

● Issued ages 50 through 85 (PA, MO and NJ have state variations)● AGE LAST BIRTHDAY

● Non-tobacco and tobacco rates

● “Yes”/“No” application

● Telephone interview at point of sale

● Immediate underwriting decision after telephone interview

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Simplified Issue Whole Life

● Face Amounts $3,000 through $25,000

● 100% of Face Amount paid as death benefit

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Graded Death Benefit Whole Life

● Face Amounts $3,000 through $10,000

● Limited Death Benefit in years 1 and 2● Year 1: 30% of the Face Amount;

100% if death is accidental

● Year 2: 70% of the Face Amount; 100% if death is accidental

● Years 3-plus: 100% of the Face Amount

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Incontestability after 2 years

● Certificate is incontestable for lifetime of the insured after 2 years of being in force, except for non-payment of premiums and/or fraud

● During the 2 year Contestable period:● Medical records will be ordered if claim within first 2

years

● If the application is noted “non-tobacco”, but medical documents prove tobacco use at time of application or within the prior 12 months, the death claim will be denied.

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Prescription Indicatoravailable in the Agent Guide

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Medical Questions

● Question 1: Tobacco use within the last 12 months

● Questions 2 – 7: Review medical questions. If yes, proposed insured is not eligible for any coverage

● Questions 8 – 9: If answer is yes, proposed insured is eligible for GDB

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Point of Sale Underwriting Steps to Success

Step 1: Pre-qualify your client, the Proposed Insured

Step 2: Determine whether to interview “now” or “later”

Step 3: Conduct the interview now

Step 4: Submit the application (application can be faxed for immediate data entry)

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SIWL Rates Non-Tobacco; $10,000; Monthly EFT

MALE

Age 50 27.01

55 33.91

60 40.91

65 52.21

70 69.61

75 97.41

80 142.71

85 201.81

FEMALE

22.61

27.81

33.11

40.91

51.31

72.21

102.71

149.61

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GDB Rates Non-Tobacco; $5,000; Monthly EFT

FEMALE

16.11

18.71

22.61

28.71

38.71

55.26

81.76

117.91

MALE

Age 50 18.26

55 23.51

60 29.56

65 40.46

70 59.16

75 87.86

80 132.66

85 162.71

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Accelerated Living Benefit Rider

Terminal Condition

&

Permanent Confinement

Form series 1766

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Accelerated Living Benefit Rider

● Up to 75% of the Face Amount can be accelerated● Minimum face amount $7,500

● Up to a maximum of $250,000 (aggregate of all certificates)

● Rider available for no additional premium in approved states

● Qualifying Events:● When the Insured has been continuously confined to a nursing home

for 90 days and the physician-certified confinement is expected to be permanent;

● When the Insured is diagnosed by a physician as having a terminal condition and has a life expectancy of 12 months or less

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Permanent Confinement

● Insured’s continuous confinement. . .● Beginning after the date of issue● Must have been continuously confined for at least 90 days to be

eligible● Confinement is expected to be permanent● Certified by a licensed physician

● . . . to a Qualified Nursing Home● Licensed by the state for nursing home care● Provides nursing home care as its primary function

● Benefit may be tax-free or taxable● Consult a qualified tax advisor

● Benefit can be applied to certificate settlement option to provide a guaranteed income stream (minimum amount $500)

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Terminal Condition

● Physician certifies that as of the date of certification the Insured has an illness or physical condition, including a physical injury, that can reasonably be expected to result in death in 12 months or less.

● Tax-Free BenefitThis is our understanding of current tax laws. Any certificate-holder considering acceleration of benefits should consult a qualified tax advisor.

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Royal Neighbors of America

● As of Dec. 31, 2010:● Assets exceeding $766 million

● Statutory-basis surplus exceeding $228 million

● Rated A- Excellent by A.M. Best

● Individuals who are insured by Royal Neighbors are members of the Society and are eligible to apply for membership benefits

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Royal Neighbors of America At a Glance

● Serving more than 215,000 members, both women and their families

● As a non-profit organization, the Society has contributed millions of dollars in the past 40 years to support individuals, families, and communities nationwide

● Founded in 1895 as a fraternal benefit insurance society for women

● Local chapters across the nation focus on issues important to today’s women, including their financial security, health and wellness

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Appendix

Health Questions

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Health Questions (some state variations may exist)

2. Is the Proposed Insured currently:

a. Hospitalized, in a nursing facility or receiving Hospice Care?

b. Confined to a wheelchair, bed, or using oxygen equipment to assist in breathing?

This include being confined to a mental institution

If this question is answered YES, the Proposed Insured is not eligible for either plan.

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Health Questions (some state variations may exist)

3. Has a member of the medical profession ever diagnosed or treated the Proposed Insured for Acquired Immune Deficiency Syndrome (AIDS), AIDS Related Complex (ARC), or any immune deficiency disease; or has the Proposed Insured tested positive for the Human Immunodeficiency Virus (HIV)?

This includes a diagnosis by a government or state-operated facility.

If this question is answered YES, the Proposed Insured is not eligible for either plan.

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Health Questions (some state variations may exist)

4. Has the Proposed Insured ever been diagnosed as having or been treated for:

a. Congestive heart failure, or had or been recommended to have an organ transplant?

b. Insulin shock, diabetic coma, amputation caused by disease, or taken insulin shots prior to age 50?

Organ transplant, including but not limited to, heart, lung, liver, and kidney

If this question is answered YES, the Proposed Insured is not eligible for either plan.

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Health Questions (some state variations may exist)

5. During the past 18 months has the Proposed Insured been diagnosed as having:

a. STROKE includes cerebral vascular accident (CVA); ANEURYSM is a blood-filled dilation in any vessel in the body;CARDIOMYOPATHY is deterioration of the function of the heart muscle;CIRCULATORY SURGERY includes vessel by-pass, heart or heart valve replacement, pacemakers, end-to-end anastomosis, endarterectomy, or angioplasty.

b. ANGINA is chest, arm, or jaw pain brought on by inadequate blood flow;HEART ATTACK is also known as myocardial infarction or HEART FAILURE;HEART SURGERY includes vessel by-pass, heart or heart valve replacement, pacemakers, end-to-end anastomosis, endarterectomy, or angioplasty.

If this question is answered YES, the Proposed Insured is not eligible for either plan.

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Health Questions (some state variations may exist)

6. During the past 24 months has the Proposed Insured been diagnosed as having, or been treated for:

a. Internal Cancer, Melanoma, or Leukemia?b. Dementia, Alzheimer’s Disease, or mental incapacity?c. Cirrhosis, liver disease, kidney failure (including dialysis),

chronic kidney disease or systemic lupus?

● MELANOMA is an external skin cancer;● DEMENTIA is an irrecoverable deteriorative mental state;● MENTAL INCAPACITY is the inability of an individual to fully

understand and appreciate the consequences of her/his actions.

If this question is answered YES, the Proposed Insured is not eligible for either plan.

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Health Questions (some state variations may exist)

7. During the past 18 months has the Proposed Insured been diagnosed as having:

a. A condition expected to result in death within 12 months?b. Been advised by a medical professional to have any

diagnostic testing which has not been completed or for which the results have not been received

c. Been recommended to have treatment or counseling for alcohol or drug abuse?

DIAGNOSTIC TESTING includes blood tests, urinalysis, x-rays, E.K.G., echocardiograms, mammography, M.R.I., and C.T. Scans, etc.

If this question is answered YES, the Proposed Insured is not eligible for either plan.

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Health Questions (some state variations may exist)

8. Prior to the age of 50 or during the past 36 months has the Proposed Insured been diagnosed as having, or been hospitalized for:

a. Stroke, angina (chest pain), heart attack, or cardiomyopathy

b. Heart or circulatory surgery (including pacemaker, heart valve replacement, by-pass, angioplasty, stent implant, or any procedure to improve circulation to the heart or brain)

If this question is answered YES, the Proposed Insured is not eligible for Simplified Issue.

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Health Questions (some state variations may exist)

9. During the past 24 months has the Proposed Insured been diagnosed as having, or been treated for:

a. Emphysema or chronic obstructive pulmonary disease (COPD)?

b. Neuromuscular disease (including Multiple Sclerosis, Lou Gehrig’s Disease, Epilepsy, and Parkinson’s Disease)?

If this question is answered YES, the Proposed Insured is not eligible for Simplified Issue.