Indestructible: The “ah ha” Moment
How old were you when you realized you weren’t indestructible? If you’re like most people, your answer probably falls somewhere between the ages of 30 and 35.
by Stephanie Lutz, CRI Solutions
How old were you when you realized you weren’t indestructible? If you’re like most people, your answer probably falls somewhere between the ages of 30 and 35. That’s the age when the majority of us have that “ah ha” moment – something happens in our lives and it clicks that we won’t be around forever and that disability really can strike anyone at any time. It’s also the time when many people begin considering purchasing products like life and disability insurance. The challenge is that, even once the need is realized, many consumers don’t have any idea how to proceed and find the products that they know they need to protect themselves and their families.
There is often a misconception that disabilities are an exception that won’t affect most people during their working lives or that the short and long term disability policies provided by employers will be enough to make ends meet in the event something happens. Not so, according to the Department of Labor Statistics. They report that the average employer’s long-term disability policy will only pay 61% of a person’s salary, leaving 39% unaccounted for. That number is staggering considering the fact that 71% of consumers say they live paycheck to paycheck and someone in the U.S. suffers a disabling injury once every second!
Credit unions can play a critical role in the financial education process surrounding life and disability products. Educating staff about the benefits these products bring to members and what is available through the credit union is a good place to start. Other ideas include educating members through seminars centering specifically on protection products and why they make financial sense as well as making information on the products available through the credit union readily accessible.
As a credit union, what are you doing to help usher members into this new world of financial responsibility and product selection? Many will offer financial education seminars and most offer some type of insurance products on their members’ loans. However, they stop short of keeping those products and the protection they provide in the forefront of members’ minds. With many Gen-Y consumers reaching or quickly approaching the time of their “ah ha” moment – and many others who’ve already had it – there is a great opportunity for credit unions to be advocates for financial responsibility, taking financial guidance a step further to help their members build the foundation for a solid financial future.
