In a survey by LIMRA, of the respondents who said they were
likely to buy life insurance in the next 12 months, 35% said they hadn’t bought
more life insurance yet because no one had approached them about it.
If your membership is anywhere close to the national average
for life insurance coverage, you have many member households at serious
financial risk. A life insurance industry research and advocacy organization,
LIMRA, noted in its "Facts About Life 2013” report that 30% of Americans have
no life insurance at all, and 44% don’t have individual life insurance.
[Source: "Facts About Life 2013,”]
LIMRA Life insurance, quite simply, is considered a cornerstone of a family’s
long-term financial security.
Without it, all the assets your members have entrusted to
your credit union—savings, retirement accounts, certificates of deposit,
etc.—could be at risk of being liquidated too early, in some cases resulting in
tax penalties. More to the point, your members’ quality of life could suffer
unnecessarily at a time when they’re already suffering from the loss of a loved
If your credit union doesn’t currently work with a provider
to promote life insurance to members, or if you have an under-performing
program, consider including this matter in your strategic planning. And do it
soon; unfortunately, it appears that Americans are taking on more risk than in
Trend: Average Life Insurance Protection
According to the LIMRA report, the average amount of life
insurance coverage for U.S. adults has declined $30,000 since 2004 to only
This amount wouldn’t last long for most families or even for
a surviving spouse alone. It might be adequate if Social Security and other
income sources exist to fill the gap. But how many of your members have taken
the time to calculate the income they’d need if an income provider dies?
One reason so many households have inadequate life insurance
is that the process of buying it can be intimidating, especially the first
time. A credit union, as a trusted source of financial services, can help
members take that important first step by connecting them with a licensed
insurance representative in a no-risk, low-pressure environment.
Use the Trust You’ve
Sixty-one percent of Americans trust credit unions (compared
with only 23% who trust the U.S. financial system as a whole) according to the
2012 Chicago Booth/Kellogg School Financial Trust Index. By choosing a life
insurance provider wisely and promoting this service to members effectively,
you’re removing the barrier of trust that stops members from exploring their
life insurance needs.
Raise members’ awareness of your life insurance program
through multiple channels, including direct mail and educational material in
your branches. Direct members to the provider’s website for more
Offer access to a call center where members can get personal
needs analysis from a licensed representative—this is a low-key, convenient
option. And if it does lead to a purchase, you’ve helped your members protect
the assets they have with you, while forming a long-term bond to your credit
CUNA Mutual Group’s MemberCONNECT®
Program helps credit unions make TruStage life insurance products available to
members. Across multiple channels, the MemberCONNECT Program ensures members
get straightforward information about many types of insurance options. To learn
more about the MemberCONNECT Program, call 1-800-356-2644.