BALTIMORE-Aging Baby Boomers should make offering insurance products a priority for credit unions.
Products like annuities can help Boomers move into retirement years, but more important, says Todd Schubert, business unit leader for Creditor Resources Inc., are products like credit insurance and debt protection to not only assist members but protect the CU, as well.
Schubert explained that more Baby Boomers will be looking for loans, since the economy may have pushed their retirement years further out. "They may be coming back to the credit union for more lending, which the credit union may not be prepared for," said Schubert. "So the credit union has to be ready to deal with a borrower who is more (of a health risk) - more likely to become disabled and may pass away and not be able to make that loan payment or pay off that balance."
Schubert pointed out that the economy may have Boomers strapped to pay for the loans and the accompanying insurance products they need to protect themselves and their families. "Credit unions need to structure loans so members are able to afford these other products. That means if a member takes out a 60-month auto loan but can't afford credit insurance, the CU could make the loan 72 months to lower the monthly payment."
Offering insurance products, too, boosts fee income, reminded Schubert. "The economy has raised credit unions' interest in insurance products as a way to bring in additional revenue to help improve the bottom line and offset some of the things that are happening in the CU industry."
For info: www.creditorresources.com
