MADISON, Wis.-CUNA Mutual Group has pulled the plug on its life savings insurance program, once offered to tens of thousands of credit union members across the nation, as more CUs seek ways to cut expenses and provide other insurance product alternatives.
The decision to end the Depression-era insurance program, once offered through more than 10,000 CUs to encourage member saving, was due to an increasing numbers of credit unions-which pay the premiums on the $2,000 policies-dropping the program, according to Phil Tschudy, media relations manager at CUNA Mutual. An average of 10% of CUs a year have been dropping out leaving only 1,250 participants, he said.
"It was not sustainable in the long-term, credit unions are no longer interested in the program," Tschudy told Credit Union Journal last week. "We want to offer products that our credit unions want, that they value and are core to their business."
The credit union insurer introduced Life Savings Insurance in 1938 as one of its first products, providing something of a life insurance benefit. Many people used the benefits-at one time as much as $5,000-for funeral and burial expenses. The premiums were paid by their credit unions. "It was a very popular product over the years, as you can imagine," Tschudy noted.
While CUs are phasing out the product, CUNA Mutual had agreed to offer policyholders an option, to convert it into a whole life policy. The member, however, will have to pay the premium. "We wanted to at least give people the option to convert," he said.
Worth Noting
NCUA OKs New Native American CU
TOWER, Minn.-NCUA has approved a new charter for Northern Eagle Federal Credit Union to serve the Bois Forte Indian Reservation in northeastern Minnesota, the second credit union chartered for Native Americans this year.
Northern Eagle FCU membership will be open to all Bois Forte Band members living in Minnesota or outside the state; tribal government employees; employees of the Bois Forte Development Corp. and Nett Lake School; those who are part of the immediate household of a Band member or tribal employee; and credit union volunteers.
Offices for the CU will be located in Nett Lake at the Bois Forte Band's new Government and Community Services Center and in the Fortune Bay Resort Casino in Vermilion.
"Getting the charter was a long, arduous process and our plans endured a lot of scrutiny - as it should be," said Northern Eagle FCU CEO Nikki Pieratos, Bois Forte's Community Development Financial Institution and Credit Union Program Manager. "We are happy to finally be able to serve the needs of our Band members and employees. The community has been very excited about this homegrown effort."
Earlier this year NCUA chartered a credit union for the Lakota (Sioux) tribe in South Dakota.
Board Nominations Open for NCUF
MADISON, Wis.-The National Credit Union Foundation is seeking nominations for four board seats. Two of those seats are reserved for CU executives or directors; one is for a CUNA Board representative and one is for a corporate CU representative. Board members may serve up to three three-year terms. Three incumbent board members have expressed interest in remaining on the board and are seeking re-nomination: Guadalupe CU CEO Winona Nava, People's Trust FCU CEO Angela McCathran and Corporate One FCU CEO Lee Butke. Qualified candidates interested in applying for any of these board seats can click on the "Volunteer for our Board" link at www.ncuf.coop.
ChevronWest Members OK Merger
BOUNTIFUL, Utah-The members of ChevronWest CU voted in favor of merging with Chevron FCU, Oakland, Calif., putting the union on track to be completed Oct. 31. Chevron FCU will be the surviving charter with more than $2.3 billion in assets and 100,000 members. ChevronWest CU was chartered in 1950 and currently has 5,900 members and assets totaling nearly $85 million.
$100K Still Needed For Flood Victims
MADISON, Wis.-The National CU Foundation said its online disaster relief system, CUAid.coop, still needs another $100,000 to cover the more than $200,000 in relief grants that have been requested from credit union people in Colorado affected by the recent floods. Nearly 2,000 homes were destroyed by the floodwaters, with another 16,000 damaged. With highways starting to reopen, the real re-building can begin, NCUF said, but it takes money to make that happen. The foundation urged credit union people to go to www.cuaid.coop to make a donation.
CUES Announces Contest Judges
MADISON, Wis.-CUES announced that the judges for its Next Top Credit Union Exec Challenge will be Deedee Myers, CEO of DDJ Myers, Phoenix; Gary Easterling, CEO of United FCU, St. Joseph, Mich.; Ron Hance, CEO of Hertigage Family FCU, Rutland, Vt.; and Stacie Wyss-Schoenborn, VP-member solutions of BECU, Tukwila, Wash. The judges will follow the projects being conducted by the five finalists who were chosen by public voting and will then select the winner at CUES' CEO/Executive Team Network event in San Diego, Nov. 3-6.
Fryzel Honorary Parade Grand Marshall
BROOKLYN, N.Y.-NCUA Board Member Michael Fryzel was named honorary grand marshall of the Pulaski Day Parade while he was in town touring Polish & Slavic FCU. "As a Polish-American and the first Chairman and Board Member of Polish decent to serve on the NCUA Board, it was a great honor to be named Honorary Grand Marshall and to walk the parade with you," Fryzel added. "The Pulaski Day Parade is just one of many activities Polish & Slavic is involved in. Their scholarship program for students is outstanding and yet another way they take part in the community they serve, truly exemplifying the credit union philosophy of people helping people."
Kansas CUs Give Away $23,000
WICHITA, Kan.-Credit unions across the state participated in the Kansas CU Association's 3rd Make A Difference event, giving away cash, gift cards or free gas at 10 different locations. A total of $23,000 was give out during the event. Participating CUs included Ark Valley CU, Central Star CU, Cessna Employees CU, Educational CU, Emporia State FCU, EquiShare CU, Kansas State University FCU, Mainstreet CU, Medical Community CU, Meritrust CU, Mid American CU, New Century CU, Quest CU, Reliance CU, TECU, United Northwest FCU and United CU. The first Make A Difference event was a gas giveaway in October 2012. The second one was earlier this year in May, when credit unions bought lunch, coffee or donuts for consumers in their communities. Each event is a surprise, with the event and location not revealed until that same day.
