A credit union has no business paying such crazy insurance premiums if it can't keep the core business profitable. Many credit unions should be getting rid of it altogether to lean up their operations.
Your post is missing one of the cornerstone advantages of having a local CU account, especially for Older clients.
People already pay insurance companies monthly for a policy that pays out on death, many CU’s once criteria is met enhance the deceased persons account, in so many cases this account is on the books for many years. Opening an account today and passing away in two years is not usually covered, one must have a long history and minimum balances.
I have experience recently with a deceased in law who had a CU account for 40+ years, it paid out €1300, all criteria was met, the deceased made sure of that.
This will be hard to swallow for long standing clients of CU’s.
They are not commercial enterprises and have a valuable role to play in local areas.
Credit unions are now run like banks - does this reduction apply in all credit unions? if so I feel members should be notified as many older people have factored this grant into their financial affairs. Our local credit union used the insurance cover as part of their advertising. I know they have problems with their surpluses but they need to be honest with members.
This topic came up at our recent CU AGM, there were unhappy older members but it's primarily a cost issue. The premium is going up and the CU income is going down mainly due to the low interest rates that they are getting on their surplus funds. The balance in accounts was reduced as well from 100k down to I think 50k but could be wrong on that as it didn't affect me anyway!
CUs pay a premium to the Leagues own insurer, ECCU. It’s an annual payment depending on the level of cover chosen. Unfortunately the premium is rising because the average age of credit unions membership is rising (despite efforts to recruit younger members).
Credit unions are now run like banks - does this reduction apply in all credit unions? if so I feel members should be notified as many older people have factored this grant into their financial affairs. Our local credit union used the insurance cover as part of their advertising. I know they have problems with their surpluses but they need to be honest with members.
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