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Royal Neighbors of America Royal Choice 7 Fixed Annuity Review

What will we be covering in this review of the Royal Neighbors Royal Choice 7 Annuity?

In this annuity review, we will be going over the following details regarding the Royal Choice 7 Fixed Annuity from Royal Neighbors Insurance Company:
  • Type of Annuity royal neighbors royal choice annuity
  • Charges and Fees
  • Current Rates
  • Realistic Short- and Long-Term Performance Expectations
  • Who This Annuity May Be a Good Fit For
  • Who Should Consider Other Alternatives

Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.

Over the past several years, annuities have become a much more popular component of retirement planning. One reason for this is because, as people are living longer, having a retirement income that lasts much longer is necessary – and unlike any other insurance or financial product in the market place, an annuity is the only vehicle that can guarantee you an income for the remainder of your lifetime, regardless of how long that is. Annuities aren’t just some newly-developed financial vehicle, either. In fact, annuities have actually been in existence ever since the Roman empire, although some believe that they were initially created in Egypt, somewhere between the year 1100 BC and 1700 BC. Later on, when the Great Depression hit the U.S. in the 1930s, annuities gained popularity as a safe place from volatile markets. They again became a go-to product during the Great Recession in 2008 and 2009 – primarily fixed and fixed indexed annuities – because they don’t lose value, even in a downward spiraling market. The same holds true with the more recent Coronavirus pandemic that had a significant impact on the stock market (as well as markets around the globe). Many investors lost years’ worth of savings within just a few weeks’ time. But those who held fixed and/or fixed indexed annuities were able to sleep much better at night, knowing that their principal was protected and that they could still count on a reliable income stream in the future. Fixed annuities have become particularly favored by those who are at or approaching retirement time, as people are getting much more leery about entrusting their savings to an extremely volatile stock market. So, if you’ve been considering a fixed annuity like the Royal Neighbors Royal Choice 7 annuity because you want to ensure that your money is safe, and that you’ll have lifetime income that you can count on, this product could be a viable option for you. But, before you go and plunk down a large chunk of your savings into this (or any) annuity, it is highly recommended that you first obtain an understanding about what a fixed annuity will and won’t do for you. That’s where the Annuity Gator comes in!

Annuity and Retirement Income Planning Information You Can Trust

If you have never visited our website, then please allow us to officially welcome you here to We make up a team of experienced annuity specialists who focus on offering very comprehensive – and unbiased – annuity reviews. We have been doing this for quite a few years now – longer than our competitors. And, because of the in-depth reviews that we provide, we have become a highly trusted source of annuity information online. There are hundreds of annuities – fixed, indexed, and variable – that can be found in our comprehensive Annuity Review database, which is accessible from our website. Over the past decade or so, however, there have been a number of “copycat” websites that have popped up on the Internet. While some of these can give you information about annuities, what you are likely to find is that they are oftentimes just simply reiterating what our information already shows. If you have been researching annuities on the Internet lately, it is likely that you also have run across some conflicting information regarding these financial vehicles. That really is not surprising, though, as there are many, many annuities out there in the marketplace, and just about everyone seems to have a differing opinion about them. It could also be that you’ve recently attended an annuity seminar. Here, the presenter may have given you more in-depth details about the Royal Neighbors Royal Choice 7 annuity, or some other similar product. In fact, it may even have been your attendance at that seminar that led you here to our site in search of additional information. When you’ve been looking at annuities online, it is also possible that you landed on some other annuity marketing websites that focus on luring visitors in for the purpose of obtaining their contact details. These sites will oftentimes do so by making some fairly bold claims about the annuities they offer, such as:
  • High Annuity Income Payouts
  • Guaranteed Income for Life
  • Top-Rated Annuity Carriers
  • Low Fees

Does this look familiar?

But, as nice as these claims might sound, it is really important that you verify their validity first before you decide to move forward with a long-term financial commitment. Otherwise, it could end up costing you. That being said, if you are looking for more in-depth information about this Royal Neighbors Royal Choice 7 annuity, then you are definitely in the right place. In fact, dare we say that our website is the only place online where you can get all of the key details about this Royal Neighbors annuity so that you can make a well-informed buying (or non-buying) decision. It is important to note here, however, that in addition to providing you with all of the nice keen benefits of this product, we are also going to lay out the product’s drawbacks. This is so that you will be in a better position to make a truly well-informed decision as to whether or not this is really the annuity for you. We do want to be very clear in that we believe annuities are beneficial products – and they can be a great addition to a portfolio for some people – but only as long as they fit in with your overall financial objectives. This annuity review is here to provide you with what you need to know. So, with that being said, let’s go ahead and get started!

The Royal Neighbors of America Royal Choice 7 Fixed Annuity at a Glance

Product NameRoyal Choice 7
IssuerRoyal Neighbors of America
Type of ProductFixed Annuity
A.M. Best RatingA-
Phone Number(800) 627-4762

Opening Thoughts on the Royal Neighbors Royal Choice 7 Annuity

Royal Neighbors of America has a 125 year history in the insurance industry – so the company has definitely withstood both good and bad financial markets and is still going strong. This can be a positive thing – especially when you are considering the purchase of a long-term financial commitment like an annuity. The company offers several different annuities in its product line, which includes both single premium and flexible premium annuities, as well as immediate and deferred alternatives. Given that, you could choose to purchase an annuity for the tax-deferred growth of funds, or, if you need income right away, then you also have the option for an immediate incoming cash flow. Royal Neighbors of America is strong and stable financially, and the company holds more than $1.1 billion in assets under management, with a surplus in excess of $190 million. With more than $3.7 billion of life protection coverage in-force, Royal Neighbors has paid out over $30.6 million in life claims alone. Given the extremely volatile stock market over the past decade or so, fixed annuities have become quite popular – especially with those who are keeping an eye on their principal and don’t want to lose it in a market “correction”. So, if you have money that you’re counting on to still be there when you need it, then a product like a fixed annuity can be highly appealing. But, even though you can ensure that your principal is safe – and that you can receive a lifetime incoming cash flow – before you move forward with purchasing the Royal Neighbors Royal Choice 7 fixed annuity, there are some details that you should know. This is especially the case because once you get into an annuity, it can be fairly costly if you decide to get out of it any time soon.

Before getting into the nitty-gritty details, here are some necessary legal disclosures…

This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Royal Neighbors of America has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This Royal Neighbors annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and / or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners. For additional information on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.

How Royal Neighbors of America Describes the Royal Choice 7 Annuity

The Royal Neighbors Royal Choice 7 annuity is a fixed annuity that provides the option for a steady lifetime income in retirement. (Alternatively, you could choose to receive income from the annuity for a set number of years). The Choice Series of annuities from Royal Neighbors provides options for guaranteed interest for a set period of time – in this case, for seven years. Once you have chosen your initial guaranteed interest crediting, the funds in the annuity will compound on a daily basis. It is important to note that the initial interest rate will be determined by the single premium amount you have on deposit at the time of issue. For the remainder of the time you own the annuity – once the 7-year guarantee period has elapsed – Royal Neighbors of America will then offer a minimum guaranteed credited interest rate. This is the case, regardless of what is happening in the stock market at that time. As with other deferred annuities, your money in the account will grow on a tax-deferred basis, meaning that no tax will be due on the gain until the time of withdrawal. There are some added “bells and whistles” offered with this annuity, too, such as a death benefit. In this case, if the annuity owner passes away during the “accumulation” period (i.e., the time period when the funds are still growing), a named beneficiary will receive death benefit proceeds – usually free from the cost of probate. Even with these nice benefits, though, there isn’t really anything stellar that stands out about this particular Royal Neighbors annuity – and quite frankly, depending on your short- and long-term goals, there could very well be a better alternative for you.

How an Insurance or Financial Advisor Might “Pitch” the Choice 7 Annuity

Because so many people today are concerned about keeping their money safe, it is likely that a financial or insurance advisor would pitch the Choice 7 fixed annuity based on its safety features, along with its guaranteed growth. But even though these may sound appealing, there is always going to be some kind of “trade-off” for the upside on a financial product. In this case, it is that the return can be painfully low – so low, in fact, that it may not even come close to meeting – much less beating – inflation. Added to that is the fact that the guaranteed rate on this Royal Neighbors annuity will only last for seven years, after which you take the chance that it could go down. So much for guaranteed interest rates! Given that, it is highly likely that there are some better alternatives out there for you – especially if you are seeking safety of your principal, as well as the opportunity to earn a higher rate of return. So, unless you are 100 percent convinced that the Royal Neighbors Royal Choice 7 fixed annuity is for you, it could be quite beneficial to take a look around at some alternative options. It can also be helpful if you first run the numbers based on your particular situation via our Royal Choice 7 annuity calculator. That way, instead of getting a “hypothetical” scenario based on how this annuity may perform in general for an anonymous investor, you can plug in some actual numbers that relate to you. As experts in the annuity arena, we can also offer you help with any additional questions or concerns that you may have – so please feel free to reach out to us at any time via our secure contact form here. Knowing everything that you need to know about the Royal Neighbors of America Royal Choice 7 fixed annuity – or any other annuity, for that matter – could end up saving you a great deal of money and frustration, as knowing more of the details can help you to avoid products that do not truly fit your needs. Otherwise, getting into the wrong annuity could cost a great deal in surrender charges if you change your mind soon after purchasing one and want to get out of it. In addition to that, if you would like some additional tips on what you need to know before you buy an annuity, you can also click here to immediately access our free report on shopping for annuities.

What About the Fees Associated with the Royal Neighbors Royal Choice 7 Annuity?

When considering any type of insurance or financial product, you would be hard-pressed to find one that doesn’t have at least some charges or fees. Fixed annuities are no exception. In the case of fixed annuities, you will typically find an up-front commission that is paid out to the sales rep who sells you the annuity. There are usually also annual administrative charges. In the case of the Royal Choice 7 annuity from Royal Neighbors, there are seven full years of surrender charges, which means that you essentially are locked into this annuity for a multitude of years before you can take more than 10% of your contract value without a surrender fee. (Plus, if you are under the age of 59 1/2 and you make a withdrawal, you could also have to pay an additional 10% early withdrawal penalty to the IRS).

The Annuity Gator’s End Take on the Royal Choice 7 Fixed Annuity from Royal Neighbors

Where it works best:
  • Principal protection
  • Guaranteed lifetime income stream
  • Guaranteed interest rate protection (for a set period of time)
Where it works worst:
  • For those seeking the opportunity to get a higher rate of return
  • For those seeking a longer-term interest rate guarantee
  • For those who do not intend to use the guaranteed lifetime income feature
If you truly want to get a more in-depth idea of the best annuity options in the market, then please feel free to download our free report on annuities here.

In Summary

If you’ve been thinking seriously about purchasing a fixed annuity like the Royal Neighbors Royal Choice 7 Annuity, but you’ve been a bit leery about moving forward, then you may need to get a more in-depth understanding about how these products work, how they can work for you, and why they may or may not actually be the ideal financial option for you. In any case, though, you should always consider an annuity to be a longer-term financial endeavor – especially because these products will typically have multiple years of surrender charges if you want to take out more than just 10% of your contract value. The good news is that, if you are considering going with a fixed annuity, you can be assured that you will have principal protection and safety, as well as a set, ongoing income stream for life that you can count on. With that in mind, when it comes to the Royal Neighbors of America Royal Choice 7 fixed annuity, there are some nice features that are offered. Yet, this particular Royal Neighbors annuity could also fall somewhat short – especially if you’re hoping for a higher return. If you have any questions about whether or not this annuity would fit into your financial plan – or, even if you just have a general question about annuities and how they work – please feel free to contact us. Our annuity geek team will be happy to help.

Need Additional Info? Did You See Any Mistakes?

While we know that this Royal Neighbors annuity review of the Royal Choice 7 was a bit on the lengthy side, our feeling is that we would rather give you too much information about annuity options as versus not enough. So, if you do feel that you gained some good insight about the Royal Neighbors Royal Choice 7 annuity here, please feel free to forward this review to anyone else who you think may benefit from it. Also, we know that because information about annuities can, and often does, change, that there may be some details here that require updating. With that in mind, if you did happen to notice anything at all in this review that needs revision, please let us know here via our secure online contact form. Likewise, if you would like to see any other annuities reviewed, please let us know that, too as we are always looking for suggestions on products to review. In addition, if you are interested in seeing personalized figures plugged into the Royal Neighbors of America Royal Choice 7 fixed annuity, we would be happy to run a spreadsheet and share the information with you, at no charge. We look forward to helping you with any questions that you may have. Best, The Annuity Gator P.S. If you would like to read more of our Royal Neighbors annuity reviews here are some links to check out: royal neighbors royal choice annuity

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