Credit unions have long distinguished themselves by putting members first. That commitment has earned trust across generations and helped position credit unions as financial partners, not just financial providers.
But today's lending environment presents a new challenge.
Consumers continue to face economic uncertainty, from inflation and rising household expenses to concerns about job stability and unexpected life events. Many borrowers understand they need greater financial resilience, yet they're also approaching financial decisions with more caution than ever before. They're asking more questions, taking more time to evaluate options and looking for guidance they can trust.
This shift creates an opportunity for credit unions to strengthen relationships by helping members prepare for life's uncertainties. It also highlights why payment protection deserves a fresh look.
Securian Financial's 2026 lending environment research found that borrowers overwhelmingly recognize the value of payment protection. However, adoption rates remain lower than many financial institutions expect.
77% of respondents perceive payment protection to provide meaningful financial security, yet only 1 in 5 have purchased it.
The gap isn't driven by a lack of need. Instead, it reflects a deeper challenge: trust.
The research, based on a national survey of 1,000 current and prospective borrowers and interviews with banking and credit union leaders, found that borrowers often hesitate because they don't fully understand the product, don't believe they'll need it or worry they're being sold something they don't want. These findings suggest that improving adoption isn't simply about offering payment protection—it's about creating a member experience built on education, transparency and confidence.
Why trust matters more than ever
Members don't make financial decisions in a vacuum. Every conversation is shaped by previous experiences, economic conditions and the amount of confidence they have in the institution sitting across the table.
When payment protection is introduced as just another product, members may naturally question its value. But when it's presented as part of a broader conversation about protecting financial well-being, the discussion changes.
Credit unions are uniquely positioned to have these conversations because of the trust they've built within their communities. Members expect their credit union to provide guidance that reflects their best interests. That expectation creates an opportunity to move beyond transactional lending conversations and instead focus on helping members prepare for the unexpected.
Whether it's an illness, disability, involuntary unemployment or another life event, payment protection can help borrowers maintain financial stability during difficult times. Helping members understand that value starts with listening first and educating second.
Four barriers worth addressing
Our research identified four common barriers that continue to slow payment protection adoption.
- Limited understanding: Many borrowers simply don't know what payment protection is or how it works. Without a clear explanation, it's difficult for members to recognize how the product could fit into their financial plan.
- Optimism bias: Borrowers often assume unexpected financial hardships won't happen to them. While optimism is natural, it can also make it harder to appreciate the value of planning ahead.
- Sales resistance: Members are quick to recognize conversations that feel transactional. If payment protection is positioned as an add-on instead of a solution, borrowers may disengage before understanding its benefits.
- Desire for control: Today's consumers want to make informed decisions at their own pace. They appreciate educational resources, transparent pricing and the freedom to choose what's right for their situation.
Each barrier points to the same conclusion: lasting trust isn't built through persuasion. It's built through clarity, empathy and education.
Helping members make informed decisions
Credit unions can build this level of trust by shifting the conversation away from selling a product and toward supporting financial confidence.
Simple language, relevant examples, and thoughtful conversations can help members better understand how payment protection works and when it may provide value. Digital resources that members can review on their own time can reinforce those conversations while giving borrowers the space to evaluate their options without pressure.
This approach aligns with what members increasingly expect from their financial institutions: personalized guidance that helps them make decisions with confidence.
As economic conditions continue to evolve, the institutions that invest in trust will be better positioned to deepen member relationships and improve long-term engagement.
Payment protection isn't just about protecting a loan. It's about helping people navigate uncertainty with greater confidence. For credit unions committed to improving members' financial well-being, that conversation has never been more important.
Unless otherwise noted, all statistics are from Securian Financial's 2026 lending environment research study.
Payment protection refers to our suite of products that support lending solutions sold through financial institutions. These products include debt protection and credit insurance.
Insurance products are issued by Minnesota Life Insurance Company or Securian Life Insurance Company, a New York authorized insurer. Minnesota Life is not an authorized New York insurer and does not do insurance business in New York. Both companies are headquartered in St. Paul, MN. Property and casualty insurance products are issued by Securian Casualty Company, a New York authorized insurer. Product availability and features may vary by state. Each insurer is solely responsible for the financial obligations under the policies or contracts it issues.
Securian Financial is the marketing name for Securian Financial Group, Inc., and its subsidiaries. Minnesota Life Insurance Company and Securian Life Insurance Company are subsidiaries of Securian Financial Group, Inc.
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