Insurance and financial wellness in a medical crisis

The coronavirus pandemic made 2020 a challenge to say the least, but it also brought to light the increased need for educating consumers on financial wellness. In our last blog, we discussed how many consumers do not have access to $400 in case of emergency. Coronavirus has highlighted this crisis, and credit unions can use this opportunity to educate consumers about savings and insurance to help buoy them through difficult times.

One-third of Americans have lost income because of the virus, and 58% of people are saying that they are experiencing some degree of financial stress due to the pandemic.1 With the devastating number of job losses and the large blow the American economy has taken, it is no surprise that many people’s finances have been hit hard, and those who are the most financially vulnerable now face the reality of not being able to pay bills, rent, or any other sudden expenses.

However, insurance can help provide a safety net for these unexpected financial bumps in the road. Supporting your members’ financial health can even help boost satisfaction 3 times over2, strengthen loyalty that helps with word of mouth and length of relationships, and provide opportunities for deepening your relationships with your members.

Even without a virus ravaging the world, injuries have long taken a toll on our wallets, as well as our bodies. Behind heart disease and cancer, accidental injuries are the third leading cause of death in America.3 As for the number of all injuries, whether fatal or nonfatal, emergency rooms get around 40 million injury related visits a year.4 Depending on how serious the injury, it can greatly increase the cost of medical care.

 

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