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Community-centered life insurance
Since its founding in 1877, Royal Arcanum in Boston has provided life insurance to middle—and lower-income families. Royal Arcanum is a fraternal benefit society and a non-profit. In short, the life insurance company operates differently from commercial insurers. Royal Arcanum reinvests its profits into its communities, including funding scholarships, participating in community projects, and supporting charitable causes.
Chief Operating Officer Nick Benoit describes the organization as a “community insurer,” highlighting the difference between for-profit insurance companies and fraternal organizations like Royal Arcanum. "When we make money, it doesn't go into a stock price or executives’ bonuses. It benefits the community—whether it's college scholarships, walks for causes like the Jimmy Fund or funding schools like St. Elizabeth's in Baltimore," Benoit shared.
The fraternal model of life insurance is rooted in history. In the late 1800s, only the wealthy could afford life insurance; it was out of reach for working-class families. Fraternal organizations like Royal Arcanum emerged as a solution, pooling resources within communities to provide affordable life insurance policies to families. “Fraternals were in some way almost passing the plate,” Benoit said. He illustrated the concept further with a sports analogy. “If you go to a local baseball game, like the Cape Cod League, you might have a player passing a hat to raise funds for a cause.”
Royal Arcanum operates in 30 states and Washington, D.C. today, continuing to offer life insurance solutions to families that commercial insurers might otherwise overlook. The company’s policies are designed to be accessible. "We have a niche market. Some commercial companies have minimum coverage amounts of $300,000, but with us, you can get a $50,000 whole-life policy at a lower premium. It’s about making sure that families who can’t afford higher coverage still have protection," Benoit explained.
Those who become customers of Royal Arcanum are considered members and can obtain whole life insurance, limited-payment life insurance plans, annuities, and Medicare supplement plans.
For those unfamiliar with traditional life insurance offerings, whole life insurance provides a guaranteed death benefit and cash value accumulation over time. Premiums remain level throughout the policy's life. Next, limited payment life insurance policies require payments for a set period, after which the policy is fully paid. The death benefit remains active for the insured’s lifetime. The term life insurance option offers temporary coverage with lower premiums, providing financial protection for a specific period. Annuities are insurance products designed to offer a stable income stream and are often used in retirement planning. Lastly, Medicare supplement insurance plans help cover out-of-pocket costs not paid for by Medicare, such as copayments, coinsurance, and deductibles.
In addition to its insurance offerings, Royal Arcanum provides various member benefits, including scholarship programs, discounts, and access to community events. "When you buy a policy from us, you’re not just a customer—you become a member. That comes with a whole host of benefits that help you and your family," Benoit noted.
When asked how Royal Arcanum attracts new members, Benoit shared that, unlike commercial firms with large marketing budgets, Royal Arcanum relies on word of mouth to spread awareness. He noted the advantages of being a smaller, more nimble organization. "I know I can make an impact here. If we need to make changes to benefit our members or the community, we can act quickly without all the red tape," he said.
Switching gears to Royal Arcanum’s community impact, Benoit shared one of his favorite programs: a partnership with the Plymouth Area Coalition in Kingston, MA, through which Royal Arcanum provides holiday gifts to needy children. "I’m a softie for Christmas. My own kids help with the gift shopping for other children who might not have much to open on Christmas morning. It's something I feel strongly about—making sure every child feels the magic of the holidays," Benoit shared.
After 12 years at Royal Arcanum and a decade at a commercial insurance firm before that, Benoit is passionate about his work. "I love talking life insurance, but what really keeps me going is the opportunity to make a difference, both for our policyholders and in the community," he said.
For more information about Royal Arcanum, check out their BBB profile. To learn more about BBB and read more stories like this, visit Behind the Business Stories with BBB in Eastern MA, ME, RI & VT.
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