Simplify Life Insurance: A Winning Strategy
Life insurance offers a unique opportunity for credit unions to offer a service that may strengthen long-term relationships with members, while also helping improve their financial futures.
But as technology continues to influence consumer expectations for ease and simplicity—think Amazon and Netflix—life insurance has some work to do. It needs to be easy for all consumers to understand, compare, access, purchase and service.
The following consumer trends give us insight into how we can better provide options that meet evolving member expectations, ensuring you’re there for your members—now and for many years to come.
In the past five years, the multicultural member population at credit unions has grown 61 percent. This population is primarily composed of millennials or younger, and we know these consumers prefer digital tools and mobile apps.1
Fast, intuitive digital experiences are vital for attracting and engaging this shifting member base, but that doesn’t mean it will be at the cost of your older members. All generations are looking for web-based solutions. In fact, 45 percent of seniors say they’ve visited the website of a life insurance company, and 36 percent say they’ve used search engines to find life insurance information.2 As this group ages, many will look for fast and easy options to cover their life insurance needs.
Massive shift to the web and mobile. In 2017, 55 percent of consumers visited a life insurance provider’s website, and 52 percent used a search engine to find information on life insurance.2 Considering that almost four out of every five U.S. adults now owns a smartphone, it’s no surprise that web and mobile use is the norm.3
Additionally, throughout their purchasing journey, consumers now switch between smartphones, laptops and tablets. Most start on their phone but complete their transaction through a different device or channel.4
Choosing a provider with strong search engine optimization (SEO) practices and a streamlined transition between devices may enhance your presence online––helping position you as a leader in the industry.
Demand for simplified purchase processes. In the age of Amazon, consumers expect every buying experience to be fast and simple. And because the average attention span is now just eight seconds, it’s harder than ever to captivate consumers.5
With 10,000 brands vying for consumers’ attention each day, only those who offer simplified purchase processes will stand out.6 That means making the whole experience easy––from researching, to purchasing, to servicing.
If you don’t have what consumers are looking for online, they’ll simply go somewhere else.
The reason doesn’t matter.
The need for life insurance for nontraditional reasons is growing. 52 percent of consumers are using life insurance to supplement retirement income and 54 percent plan to use it to pay off their mortgage.7
But what hasn’t changed over the years is that most adults are either un- or under-insured. So, when one in three people admits they simply don’t have enough life insurance overall, it’s time to take a step back and think about what barriers are preventing your members from getting the coverage they need.7
Download our report at cunamutual.com/lifematters to discover ways to help simplify the complex life insurance process and better serve all consumers.
- CUNA Mutual Group, What Matters Now: Insights from Multicultural Consumers, 2018
- CUNA Mutual Group, Acxiom overlay data on race and ethnicity, December, 2017.
- PEW Research Center, “Mobile Fact Sheet,” February 5, 2018.
- SnapApp, “What is Multichannel Marketing: An A-Z Guide (with Strategies & Examples),” February 13, 2018.
- Cision, “Brands, Here’s How to Captivate Consumers in the Age of Distraction,” May 2017.
- American Marketing Association, “Why Your Customers’ Attention is the Scarcest Resource in 2017,” 2018.
- Life Happens, “2017 Insurance Barometer Study.” 2017
Why Your Credit Union Needs to Offer a Gift Card
More than half of the American population purchased at least one prepaid card in 2017. If your credit union is not currently offering a gift or prepaid debit card, chances are that you’re missing out on a valuable form of revenue and an equally valuable opportunity to expand your member base and relevancy to your current members. Don’t just take our word for it; here are 6 reasons why your credit union should offer a gift card to your members today:
1. Millennials are using gift cards. According to one study conducted by the Blackhawk Network, 89% of gift card purchasers are between the ages of 18-34. Since Millennials have $200 billion in buying power, we know that credit unions are always looking for new ways to increase their millennial member base, and offering gift cards is a great step towards that goal.
2. They can help your members manage their finances and avoid debt. Using gift cards can help your members stay within their budget when shopping or eating out thanks to their set spending limit.
3. Gift cards are safer than cash. Gift Cards aren’t tied to your member’s checking or savings accounts, therefore they pose no risk to your members’ accounts or identity if lost or stolen.
4. They enhance purchasing power for the underserved and underbanked. Gift cards allow your members who may not qualify for a debit card make purchases online and other establishments where cash is not accepted.
5. Almost everyone plans on purchasing a gift card in the near future. According to a study conducted by the Retail Gift Card Association, 70% of consumers plan on buying a gift card in the next few months.
6. Gift cards increase your credit union’s program offerings. The more products a member has with your credit union, the more likely they are to bank with you in the long run. Gift cards are a great way to increase the number of credit union offerings used by your members and can help them get into your branches and face to face with your sales reps.
It’s important to know that while offering a gift card is an important step to attracting and retaining more members, not all gift card programs are created equal. You want to look for a gift card that offers instant issue and a way for your members to track their balance and purchases for free online. It’s also important that your gift card provider has customer service representatives available to help assist your members when necessary.
Recently Extended: Limited Time Sprint Offers!
Now is the perfect time for your members to switch to Sprint and take advantage of exciting, limited time offers. Right now, when your members switch to Sprint Unlimited Basic, they’ll get five lines for just $24 per month per line*! A flyer to promote this offer is available in the Partner Center under "Sprint Promotions".
PLUS, switch to Sprint Unlimited and get $100 for each new line of service*. Your members can enjoy unlimited data, talk and text nationwide, along with special features that include TV from Hulu, mobile hotspot, DVD-quality streaming, unlimited talk and text in Mexico and Canada and global roaming in more than 185 destinations worldwide. Time to take a vacation!
On top of these great promotions, your members can score up to $300 in cash rewardswith the Sprint Credit Union Member Cash Rewards program. Here’s how it works:
- Get up to $300 in cash rewards deposited directly into your credit union account for newly activated lines with Sprint**.
- Current Sprint customers receive up to $150 in cash rewards for lines transferred into the program**.
- Plus, you'll receive up to $150 in loyalty cash rewards every year for lines activated or transferred and 25% off accessories in Sprint stores**.
Encourage your members to hurry to a Sprint store today to switch and take advantage of all these great limited time offers!
*Limited time offers. After 1/31/2020 pay $32 per month per line for 5 lines with AutoPay. 1 Hulu Limited Commercials plan per eligible Sprint Account Coverage and offer not available everywhere. Excludes taxes, fees and roaming. Requires new lines. Subject to credit and $30 activation fee. Video streams up to 480p. Speed maximums, use rules and restrictions apply. Card Reqs online registration. Leased phone must have SRP over $100. Card is issued by MetaBank®, Member FDIC. Card terms, conditions, and expiration apply.
**Restrictions apply. See terms & conditions.
$10,000 Donated by CO-OP Financial Services to Hurricane Florence Relief
CO-OP Financial Services is donating $10,000 to CUAid, organized to help credit unions and their members in the Carolinas as they work to recover from Hurricane Florence.
“Hurricane Florence reminds us that natural disasters can come upon us with amazing speed,” said Todd Clark, President/CEO for CO-OP. “We have been proactively contacting clients in the impacted areas to assess needs and determine where we can help. The donated funds on behalf of our client credit unions is one expression of that outreach, in addition to our vast network of branches and ATMs, ensuring access to accounts for those displaced by the flooding.”
CUAid is an online disaster relief system organized by the National Credit Union Foundation. Money raised is for credit union employees, volunteers and members affected by the powerful storm.
To donate, CUAid can be found at www.cuaid.coop.
CO-OP manages two industry networks that can service credit unions members throughout the country whenever they are away from home. The CO-OP Shared Branch network includes 5,700 credit union branches nationwide, the second largest branch network in the country, enabling members to enter any branch and conduct business as if they were right at home. In addition, CO-OP ATM provides surcharge-free access to 30,000 ATMs across the country for members of participating credit unions.
To find a CO-OP Shared Branch or a CO-OP ATM, members can visit https://co-opcreditunions.org/locator; or download the CO-OP ATM and CO-OP Shared Branch mobile locator app at Google Play and iTunes stores.
Lessons Learned for Charitable Giving
Utilize cause marketing strategies and charitable donation accounts to make giving a reality
With a 127% increase in Charitable Donation Account (CDA) investments in the past year alone, credit unions are seeing the value in a CDA to earn more trust, more loyalty, and possible more towards the bottom line.* Take a moment to think how much it would benefit your community, and your credit union, to increase donations to your chosen 501(c)(3) charity or foundation or the National Credit Union Foundation. Cause marketing strategies and charitable donation accounts are tools you can use to help.
A CDA is a professionally managed investment portfolio following rules set by the National Credit Union Administration in 2013, which has the potential to earn more than traditional credit union investments, and allow your credit union to retain up to 49 percent of the earnings for your bottom line.
Your CDA investment can work much harder for your credit union (and community) if you follow some basic cause marketing strategies, such as these five:
- Believe wholeheartedly in the cause. Connect with a cause that your board, management and employees are passionate about, giving everyone a reason to be enthusiastic about participating in fundraising and other volunteer activities.
- Align with a non-profit that supports your mission. Know your community’s greatest social concerns and build partnerships, perhaps even branch by branch (as long as the overall campaign is coordinated centrally).
- Forge a formal partnership, including marketing. Make your cause marketing a formal partnership and work together with the non-profit on specific goals. Share one another’s marketing platforms to increase awareness of what you’re doing together. Focus on social media to tap into those who are active in the cause you’ve chosen and prompt other organizations to add their weight and credibility to your cause marketing efforts.
- Do more than donate money. A key to differentiating your credit union is by engaging your entire staff in volunteer activities to augment monetary donations. This shows that your interest in the charity is sincere. It also leverages your best asset – your employees – as goodwill ambassadors.
- Show a clear impact. After you’ve identified an important need, written a clear strategy for meeting that need, and engaged your resources, including your staff, document your results through various channels including articles, social media posts, video and more, detailing information such as how much money was raised (comparing to previous years, when applicable), number of volunteers with photos from the event, and comments or thanks received from community members. This can be the cornerstone of your cause marketing efforts – nothing speaks more eloquently or persuasively than positive results.
Together, cause marketing and a CDA can give your credit union new ways to have a bigger impact on your community to help further establish your credit union’s status as a leader and reputable place to do business.
*2017 Cone Communications Global CSR Study; Proprietary insurance is underwritten by CMFG Life Insurance Company. Proprietary and brokered insurance is sold by CUNA Mutual Insurance Agency, Inc., a wholly owned subsidiary. This insurance is not a deposit and is not federally insured or guaranteed by your credit union. For more information, contact your Executive Benefits Specialist at 800.356.2644. Representatives are registered through, and securities are sold through, CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, 2000 Heritage Way, Waverly IA 50677, toll-free 866.512.6109. Insurance and annuity products are sold through CMFG Life Insurance Company. Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the credit union.
Strengthen Member Relationships by Offering TurboTax this Season!
Bring savings to your members with America’s #1 online tax preparation service, TurboTax. More than 34 million consumers used TurboTax last season to prepare their taxes.
This year the tax laws have changed, but TurboTax is always up-to-date with the latest forms and 100% accurate calculations. With TurboTax, your members can file their taxes with complete confidence - and get their biggest possible refund, guaranteed.
Through our partnership with TurboTax, members are eligible to save up to $15 on TurboTax federal products. TurboTax provides a secure, easy way for your members to get their taxes done right with maximum refund guarantees. Enroll today!
GREAT FOR YOUR CREDIT UNION
The TurboTax program provides great benefits for your credit union, including enhancing the value of membership, capturing refunds as investments or low-cost deposits and adding new recurring revenue streams by promoting your products and services on your TurboTax microsite. Last tax season, more than $238 billion in refunds were directly deposited into financial institutions.
NEW THIS SEASON
The TurboTax Live product allows your members to connect to live tax experts as they prepare their taxes on their computer, enabling them to ask questions along the way. Their CPA will review their work and make any necessary changes and get their approval to file, all with their 100% Accuracy Guarantee.
Returning this season, your members will be eligible to enter the TurboTax $25,000 Sweepstakes! Entry is simple ⎯ members just need to start their taxes from your TurboTax microsite, and provide a valid email address by February 15. When they start their taxes, they will automatically be entered into the Sweepstakes. Prizes include one grand prize of $25,000 and 12 first place prizes of $1,000 each.
Don't miss out on providing your members with savings on TurboTax, and your credit union with a variety of benefits! Click here to enroll now.
To learn more about the LMCUR TurboTax program, join us for an upcoming webinar on Thursday, September 20, 1:00-2:00pm (EST). Click here to register.
Reminder: Have You Completed Your Q3 Marketing Requirements?
Below are some examples of marketing communications your credit union can complete. Visit your Dashboard located in the Partner Center to view complete marketing requirements for the program in which your credit union is enrolled, and to access the FREE marketing materials available to help promote the program.
- Newsletter article or ad
- Social media
- Mobile app or online banking banner
- Blog post
- GSTV advertisements featuring Sprint promotional offer(s)
*Maximize your success! Make sure to take advantage of the free materials available in the Partner Center and utilize multiple tactics to build momentum for the campaign.
Want to Deliver Excellent Service? Offer an Excellent Service!
Ask any financial institution about its mission and it will likely include “service-centric” or some variation of the idea. It’s something all smart institutions strive for. But excellent service doesn’t happen in a silo or start and end with tellers. It’s an all-encompassing idea that should be at the forefront of every decision and every offering.
Yet some credit unions forget this part of their mission when it comes to providing a solution for overdrafts. Some overdraft programs – defined by data-driven algorithms that calculate unique and ever-changing limits for each member – seem designed to fail important service expectations. By contrast, fully disclosed overdraft programs with static limits offer a simple solution that empowers members to make informed financial decisions.
Let’s compare how each method of overdraft protection delivers on serving your members’ best interest.
With a data-driven overdraft solution, limits vary for each member based on factors like average daily balance, direct deposits, etc. These limits change as the data changes. So how can your members ever know how much they could overdraft? Unfortunately, they can’t. “Data-driven” feels safe to some credit unions, and provides the feeling of having control, but it comes at the expense of providing first-rate service.
In a fully disclosed overdraft program, the limit is the same for everyone, all the time. Predictable, steady and reliable — all things that members appreciate, and count on.
Ability to Repay
While there’s an argument to be made that individuals with higher balances may be less risky overdraft users and therefore deserve a higher overdraft limit, I think this makes too many assumptions. Your members could have accounts elsewhere, have varying degrees of liabilities, or any number of other scenarios. The ability to repay is based on a lending process to determine credit worthiness. We can’t know everyone’s financial story from one account snapshot, so from a service standpoint it only seems fair to treat all members equally.
Moreover, overdrafts are not subject to Truth in Lending regulations, so care should be taken to avoid the appearance of a credit product.
Overdraft programs without an established limit by their very nature cannot be fully disclosed — no limit can be stated at the beginning because it frequently changes.
Fully disclosed overdraft programs require members to opt in before ever using them. Being transparent upfront gives individuals the power to make an informed decision about whether to use the service or not.
Ever try to explain something you don’t fully understand? How about trying to do so to an upset member who keeps getting more confused by what you’re saying? It’s not fun, and it is bad for morale. Data-driven overdraft solutions are designed to be unexplainable in simple terms — they’re highly technical, with ever-changing limits based on information a person may be uncomfortable being judged on.
For a more service-centric option, an overdraft program with simple rules that can be explained to an individual easily and concisely fits the bill. Employees will remain poised and confident during inquiries.
Bottom line: You can’t offer great service if you can’t even explain your service to the people who use it.
If your employees can’t explain your service, how is a member ever supposed to understand it?
Do you want your members leaving confused, frustrated and suspicious? Or do you want them to feel empowered, grateful and satisfied – which will lead to trust, loyalty and advocacy of your credit union to others.
The solution is clear: If you want to offer excellent member service, offer an excellent service to your members. Fully disclosed overdraft protection programs line up with service-centric missions.
And, if all else fails, use this litmus test: If I had limited funds available and needed to use an overdraft program, which type would I rather rely on?
Come learn with us and jump-start your success with interactive webinars featuring cutting-edge information from experienced facilitators that help you understand not only product details but how to achieve financial success, reduce your risks, and better serve your members.
To register for any of these webinars, please go to https://www.cunamutual.com/resource-library/webinars.
10/9/2018 12:00 PM (CT)
Do you enjoy giving or receiving feedback? Many people feel feedback is reactionary and negative. Revolutionize the way you coach by providing specific, actionable comments that are focused on enhancing future opportunities.
Lending Resource Center/Live Events
10/11/2018 12:00 PM (CT)
As a coach, you can often find yourself faced with a tough conversation. How you handle these conversations will ultimately impact employee performance. Implement a proven model that will both change employee behavior and maintain a good working relationship.
Lending Resource Center/Live Events
Member Focused Conversations: Guide with Confidence, Part 1
10/16/2018 10:00 AM & 2:00 PM (CT)
Members are looking for someone to provide them financial guidance. Even if your members are doing well right now, the unexpected can have an immediate impact on their financial well-being. Part 1 focuses on helping your member feel the impact through a Money Game as they make difficult decisions during an already tough time.
Lending Resource Center/Live Events
Member Focused Conversations: Guide with Confidence, Part 2
10/17/2018 10:00 AM & 2:00 PM (CT)
Go the extra mile. Part 2 focuses on using consultative questions and a consistent process to provide your members with personalized solutions. Be committed to being your members' trusted financial consultant. If you don't take the opportunity to guide your members, they will look elsewhere for the guidance they need.*
Lending Resource Center/Live Events
Cyber Landscape & the C-Suite
10/17/2018 1:00 PM (CT)
Significant responsibilities put the board and senior management at the forefront of technological, operational and human resources involved with cybersecurity management. Learn how credit union business leaders should prepare, plan and manage risks of doing business in a world of digital ransoms, fraudsters, data robbers, and hard realities.
Protection Resource Center Webinars & Education
Member Focused Conversations: Guide with Confidence, Part 3
10/18/2018 10:00 AM & 2:00 PM (CT)
Part 3 builds on what you learned about a member focused conversation and takes it to a new level. You won't simply present benefits, you'll personalize them, helping your members to see the value and why payment protection is so important. . .to them!. Go the extra mile.*
Lending Resource Center/Live Events
Addressing Concerns: Close the Case
10/25/2018 10:00 AM (CT)
What if the member asks a question or raises a concern? Don't let this question stop you any longer from educating your members on payment protection. Confidently address four common member questions and concerns related to payment protection.*
Lending Resource Center/Live Events