Grow and Protect Credit Union Members of All Generations
Produced by Securian Financial | November 18, 2020
When it comes to personal finances, what matters most to individuals and families is similar across the generations: credit union members are worried about money and want a better financial safety net. This is just one key takeaway from our nationwide survey of members conducted to support credit unions.
By using our survey data, credit unions can:
- Gain a better understanding of the financial concerns and priorities facing members.
- Gauge member interest in lending and asset protection products.
- Balance a successful business model with emerging trends in member concerns and behaviors.
Gain Insights About Each Generation
Credit union members in the U.S. are prioritizing monthly expenses, saving for unexpected expenses, and saving for retirement. Paying for monthly expenses and the desire for a better financial safety net are top financial priorities for each generation. The similarities don’t end there. Saving for unexpected expenses and paying down debt ranked among the top four financial priorities across all generations.
Credit unions are in a great position to help members prepare for the unexpected and ease financial strain. When talking to members about a consumer or auto loan, don’t forget the important role lending and asset protection programs can play in a member’s financial well-being.
Loan protection, when offered in connection with a consumer loan, provides vital protection to members when they need it most. The solutions can soften the impact an illness or injury has on their monthly budget – or their life savings or other assets should death occur. It also helps borrowers keep collateral such as a house or vehicle. According to our survey, members across all generations are interested in loan protection products – and are using them today.
Across the generations, there is a high level of familiarity with loan protection products.
- Across all generations, there is a high level of familiarity with loan protection products.
- 55% of Generation Z and Millennial members are using loan protection.
- Generation Z, Millennials, and Generation X show the most interest in using these products again in the future.
Credit protection programs include credit insurance and debt protection. Here is a quick refresher on what makes each program unique:
- Credit Insurance: Credit life insurance can reduce or pay off the insured’s loan balance if they die. Credit disability insurance can pay loan payments, up to the contract limit, if they become ill or disabled and unable to work.
- Debt Protection: Debt protection is a lending program that cancels some or all the borrower’s loan if they were to die. It also cancels the borrower’s monthly payment up to stated amounts if the borrower becomes disabled or involuntarily unemployed.
The programs are easy for credit unions to offer at the time of a loan and are an added safety measure for the credit union. They can help ensure that approved loans are paid back and do not end up in default.
For credit unions considering a switch to debt protection - now is a great time to make a move. Debt protection programs are a flexible fit for members across all generations and offer death, disability, and involuntary unemployment benefits. And they can provide members what they want – a better financial safety net.
Tips for Offering Members Loan Protection
- Tip #1: Take time to understand financial priorities, concerns, and protection needs.
- Tip #2: Determine a member’s eligibility.
- Tip #3: Be prepared to educate and inform them on: what they are buying, why they are buying it, the cost of the program, and how to report or initiate a claim.
Learn more about Securian's Credit Union Customer Survey here
In collaboration with a third-party consultant, we conducted an online survey of 449 current credit union members from across the United States who make decisions on household financial matters.
About Securian Financial
At Securian Financial, we’re here for family. And we’re here because of it. And we believe your financial picture should support the everyday moments as much as the major milestones. Since 1880, we’ve been committed to providing insurance, investment and retirement solutions that give families the confidence to focus on what’s truly valuable: banking memories with those who matter most.
About Allied Solutions
Allied Solutions, LLC is one of the largest providers of insurance, lending, and marketing products to financial institutions in the US. Allied Solutions uses technology based products and services customized to meet the needs of 4,000 clients along with a portfolio of innovative products and services from a wide variety of providers. Allied Solutions maintains over 15 regional offices and service centers around the country and is a subsidiary of Securian Financial Group, Inc. Allied Solutions has tools and resources that can help you keep an eye on the potential areas of impact, protect against collateral losses, and stay on top of any new events, bulletins, and regulations as they happen.
Source: Securian Financial Credit Union Customer Survey, July 2020
Securian Financial is the marketing name for Securian Financial Group, Inc., and its affiliates.
Content in the blog posts are the opinion and views of the writer, and don't necessarily reflect the opinions or views of Allied Solutions.