92% Of Consumers See Value In Credit Insurance

Debt protection products offer peace of mind for members and stronger relationships for credit unions.

 

By Transamerica

 

In today’s business world, the relationships you develop with your members are just as important as the hard work you put forth. Top-notch customer service is essential for your credit union to obtain new customers, retain loyal ones, and develop referrals for future business. When member services are pivotal to your credit union’s success, your employees need to have the tools to provide your members with what they want. However, knowing what your members want can be difficult.

For example, did you know many consumers desire products that help alleviate concerns of future hardship? The value-add of a loan’s credit insurance or debt protection is not lost on your members. Members who have added loan protection products to a loan in the past understand the peace of mind it offers. In a recent Transamerica consumer study, 92% of consumers who previously purchased credit life insurance said they would purchase it again with a future loan.

According to the study:

  • The primary reason consumers purchased credit insurance is because of the peace of mind that comes with knowing their loan will be paid if certain unforeseen events should occur.
  • The top benefits are credit life insurance, critical illness, terminal illness, hospitalization, skip a pay, and credit involuntary unemployment insurance (IUI).
  • 30% of the purchasers ranked credit life insurance as the most valuable benefit to them.
  • 64% of respondents who were not offered credit insurance wished it had been available because it would have filled a need for them.

Improve relationships with members by making sure you have a range of valuable protection products available. These products reinforce the fact you have your members’ best interests in mind. Plus, consumers aren’t the only ones that benefit. By adding different types of loan protection products to your portfolio, you can improve your overall credit union business:

  • Avoid catastrophic losses due to members’ adversity.
  • Promote your credit union through educating your borrowers.
  • Confidently achieve financial objectives with less risk.
  • Expand your sales safely.
  • Motivate your staff by providing new skill sets and goals.
  • Secure better borrowing terms.
  • Reduce bad debt reserves.
  • Grow business, create strong customer relationships, and grow fee-income opportunities.

A client-centric sales process that includes a suite of financial protection products allows your staff to present a complete consumer financial package. Your credit union can expand relationships with your members and present educated, professional, and properly equipped employees who have the essential skills to take care of members’ needs.

Implementing loan protection products your members value can accelerate growth and boost the competiveness of your credit union. They also allow your credit union to embrace more sophisticated and disciplined marketing processes. Credit insurance and other debt protection solutions have the potential to support your larger growth strategy.

Transamerica Is Your Complete Loan Protection Product Provider

Transamerica can help your financial institution craft loan protection product solutions with package options that include involuntary unemployment, family medical leave of absence, life and accidental death, and disability. This flexibility will provide your credit union with a competitive advantage while improving your profitability. Perhaps most important of all, Transamerica can help you provide your borrowers with peace of mind by eliminating the risk of out-of-pocket expenses.

Transamerica’s suite of loan protection products helps your credit union open new doors, strengthen member relationships, increase borrower touch points, and grow fee income opportunities. Learn more about the Transamerica Financial Solutions Group and the products and programs available to help expand your business and improve member services.

Tom Kazar is the Vice President of Sales and leader of the sales team for Transamerica — Financial Solutions Group. Tom’s focus is on adding new insurance industry products, expanding marketing distribution channels, and helping agents grow their business. With more than 20 years of experience in the financial institution and credit union industries, Tom has a talent for honing in on the most strategic, cutting-edge marketing opportunities that move our business and partnerships toward exponential growth. You can reach him at (630)215-6042 or tom.kazar@transamerica.com.

Transamerica Life Insurance Company (Home Office — Cedar Rapids, IA) and affiliated Transamerica companies provide insurance products and services. Through the Life & Protection division, the Transamerica companies offer a wide array of protection solutions to protect families and their dreams.

As part of the Life & Protection division, Transamerica Financial Solutions Group caters to the needs of credit unions, community banks, and larger financial institutions. We offer specific programs for credit insurance and debt cancellation products including marketing strategy, training, marketing support, technology software, and related services.

This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.

If you are interested in contributing an article on CreditUnions.com, please contact our Callahan Media team at ads@creditunions.com or 1-800-446-7453.

 

March 3, 2014


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