The hidden financial impact of critical illness: How credit unions can help ease the financial pain
A cancer diagnosis, heart attack or stroke can change a person's life overnight. The immediate concern is treatment and recovery. But for many households, another challenge quickly emerges — managing the financial impact.
Even with health insurance, serious illnesses can create unexpected expenses through deductibles, medications, travel, rehabilitation and lost income. At the same time, monthly obligations continue. Mortgage payments, utilities, groceries and loan payments don't pause during treatment or recovery.
It's a reality facing millions of people. Approximately 14 million Americans — roughly 6% of adults — carry medical debt balances exceeding $1,000, and about 3 million people owe more than $10,000.1
For credit unions focused on financial wellness, that's important to note.
The growing importance of financial resilience
Financial wellness conversations have traditionally focused on budgeting, saving and managing debt. Increasingly, however, financial institutions are recognizing the importance of financial resilience: helping consumers prepare for unexpected events that can disrupt even the strongest financial plans.
A serious illness is one of those events. Regardless of income level or financial habits, a diagnosis such as cancer, heart attack or stroke can create new expenses while making it harder for individuals and families to keep up with existing financial obligations.
For credit unions committed to member well-being, this presents an opportunity to consider how their products and services can support members not only in achieving financial goals, but also in navigating life's most difficult challenges.
Supporting members through critical illness protection
Debt protection has long helped borrowers prepare for life's unexpected events. Adding critical illnes protection expands that support to address another significant financial vulnerability.
When a covered diagnosis occurs, the benefit can cancel a predetermined number of monthly loan payments, helping members focus on their recovery rather than their next payment due date. For members that relief can provide valuable financial breathing room.
Helping credit unions support members through life's unexpected challenges
As credit unions look for ways to strengthen financial wellness and resilience programs, solutions that address real-world financial disruptions can play an important role.
At Securian Financial, we've worked with financial institutions for decades to help protect borrowers when unexpected life events threaten their ability to meet financial obligations.
Critical illness protection is designed to complement existing debt protection programs, giving credit unions another way to support members when they may need it most. The benefit can be bundled with existing life, disability and involuntary unemployment debt protection benefits, creating a more comprehensive approach to borrower protection.
By providing solutions that support borrowers through life's challenges, credit unions can reinforce the trust and commitment that distinguish the member experience.
