Why buy insurance from a credit union?

A very important five-letter word attracts members that need these products—and it’s not “price.” (Although that matters too.)

The most obvious reason a member—or non-member, if your credit union sells insurance through a credit union service organization—might go to a CU for insurance rather than an insurance company or some other provider is this: “They trust their credit union,” says CUES member Jim Sarver, SVP/member experience and financial life planning at $1.8 billion Lake Trust Credit Union, Brighton, Michigan.

“I think most members trust their credit unions,” he adds. “So when we get products and services like this out in front of them, they listen to us.”

An example of that theory put into practice is SELCO Community Credit Union’s Medicare product. “Medicare is really overwhelming,” says Nick Bloxham, VP/insurance services at the $1.6 billion CU based in Eugene, Oregon. “When you’re 64 1/2, your mailbox just gets chucked full of advertisements and letters. Most people don’t know what to do with that. They don’t know how to navigate all those options on their own. They want to talk with somebody about it—and that’s where we come in.”

The credit union sends its members a card as their 65th birthday approaches that says, “Give us a call when you’re ready to start thinking about Medicare.”

 

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