Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Supplemental Insurance Benefits Topic Of Council Paper
MADISON, Wis. (8/2/13)--A new CUNA HR/TD Council white paper, "Employee Benefits: The Future is Voluntary," focuses on how credit unions are evaluating and incorporating supplemental insurance programs.
 
It includes information about:
  • Options in the marketplace;
  • Presenting the business case for a supplemental insurance program;
  • The concept of "make or buy"; and
  • Metrics.
The employee benefits landscape has been transformed during the past decade, by burgeoning costs, regulatory changes and new benefits options, said the council. During and after the great recession, employers reduced their benefits budgets and shifted costs and decision making to employees. Organizations have also become more creative in offering competitive benefits that help them to recruit and retain the best workers.
 
Given the risks of self-insurance, the paper notes most credit unions choose to purchase from an insurance company. In the case of life insurance, however, the Business-Owned-Life-Insurer (BOLI) structure can be attractive for credit unions, because payments to the fund--as well as capital appreciation--are tax-free. While interest rates on investments remain low, the BOLI offers a better return on investment, the paper said.
 
Choosing the right vendor partner for supplemental insurance requires due diligence, including seeking recommendations from credit union peers and state leagues, and assessing insurance carriers' financial strength, the council said.
 
This is the second white paper in a series about employee benefits, and it is a follow-up to 2012's white paper "Credit Union Benefits Programs: Meet Employees' and Your CU's Financial Needs."
 
To access a copy of the paper, use the link.
RSS





print
News Now LiveWire
American Banker reporter follows up with CUNA's Schenk on holiday spending survey results http://t.co/T5DmIWUkaM
14 minutes ago
CFA/CUNA holiday survey spending plans results http://t.co/uyZtkNfkmD
19 minutes ago
CUNA/CFA give holiday spending tips:budget,compare,pay off quickly,save early for next year.
21 minutes ago
CFA's Brobeck points consumers to the better rates and fees at #creditunions
23 minutes ago
Households w incomes less than $25,000 fared worse over yr than those over $100,000 Brobeck notes
24 minutes ago