The importance of financial protection in a volatile economy
Today’s environment is an opportunity to protect borrowers and your business
The current uncertain economic landscape creates many challenges for financial institutions. News about tariffs and potential policy changes is creating volatile markets, increasing the costs of goods and heightening anxiety about job security. It's a mix that requires lenders to look deeper at portfolio performance, lending standards and overall risk.
Offering a holistic suite of protection products, such as debt protection or credit insurance and property protection, can help offset some of this risk, protecting your borrowers — and your business — if the unexpected happens, like involuntary job loss, illness or unplanned expenses.
But when finances are strapped and stress is prevalent, how can lenders position these solutions to borrowers? And how do consumers really feel about them in times of uncertainty? As a trusted partner in the lending market, we connected with consumers to better understand the complexities and sensitivities surrounding financial protection.
Our research shows that financial wellness is becoming increasingly complex and vulnerable. The following strategies offer solutions to your borrowers.
Methodology
Our research includes an online survey of over 1,000 consumers, of which 59% were credit union members and 41% were non-credit union members, represented across generations and focus groups with credit union members ranging in ages 21 to over 55, exploring how today’s economic environment impacts how they prioritize and view secondary insurance protection.
6 strategies to effectively position financial protection solutions
1. Lead with empathy and relevance
It’s important to acknowledge economic uncertainty and validate borrowers’ financial concerns. Position solutions as tools to help reduce anxiety and protect financial progress – not a product to buy. The biggest concerns impacting financial wellness are sudden income loss and unexpected financial setbacks, like medical issues or job loss.
2. Showcase real-life scenarios
Help borrowers visualize the practical benefits of protection products. Highlight relatable situations like a medical emergency, car repair or job loss to showcase the value of these products in their daily lives. You can also ask discovery questions — either in person or online — that inquire about their ability to pay for an unexpected expense to help them see the need and value.
“We have an emergency fund and have some savings also. I feel like we would be okay if something happened.“
— Survey participant
“I would have a plan of action on how to handle these bills such as using credit cards or payment plans.”
— Survey participant
55%
feel prepared for unexpected expenses — largely through relying on emergency savings or credit cards1
3. Target the generational sweet spot
Gen Z and millennials are more proactive about protecting expensive purchases and more open to protection solutions than other generations. Design educational materials and marketing content that resonates with their values such as financial independence, digital convenience and peace of mind.
Likelihood to purchase:2
4. Emphasize affordability and value
Many consumers misunderstand and assume the costs for protection solutions are much higher than they are and disregard the need for insurance altogether, yet the majority typically buy protection for large purchases. Counter these hesitations by showing cost-effective options and how the premium impacts payments.
5. Take the complexity out of claims
Unfortunately, consumers can view protection products as untrustworthy, stating “you pay the money and then claims are never paid or it’s too difficult to go through the claims process.”2 Share information about the claims process at the beginning of the loan process, highlighting where to go to submit a claim and the financial strength of the carrier.
6. Position insurance as a key to financial wellness
Nearly 70% of consumers view insurance as having a positive impact on their financial well-being.2 So, position protection solutions not as a luxury or “add-on” but rather an essential step in a well-rounded financial picture. Reinforce how it complements emergency funds and helps reduce reliance on credit cards or payment plans. And remind them that they own other types of financial protection.
Generally, consumers opt to protect high-value purchases, citing reasons like
Most consumers are taking steps to secure their financial future
Most commonly, consumers are establishing an emergency fund or increasing contributions to an existing emergency fund — however, quite a few are just getting by.
11%
of respondents agree, I feel like I will never have the things I want in life because of ny financial situation1
More research on the economy’s impact on financial wellness
Our research showed consumers feel stressed and anxious; however, quite a few are hopeful. Those who feel more optimistic have made progress on their financial goals like paying down debt, and they anticipate the economy will improve. Those who are more anxious and stressed are worried about economic instability, rising cost of living and job security.1
It seems like I haven’t been able to save money for the last year. All of it goes to living expenses.
Survey participant
With companies downsizing, jobs are at risk, and I fear our household could have problems if I’m let go.
Survey participant
I’m hopeful the economy will eventually strengthen, and the market will rebound.
Survey participant
stressed
hopeful
anxious
content
frustrated
Protect borrowers and your business
Now is a great time to add protection products to your suite of offerings and make them available to borrowers. The current economic environment is an opportunity to be proactive in helping protect your customers and show that you care.
By following these strategies, you can play an important role in helping consumers with financial wellness – and protecting your business.
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All statistics are from these studies:
- Securian Financial’s Quarterly Consumer Sentiment Report, 3/28/25. Survey participants were compensated for their participation and testimonials. The testimonials were given freely.
- Securian Financial’s Prioritizing Financial Well-Being Study, 2025. Survey participants were compensated for their participation and testimonials. The testimonials were given freely.
Payment protection refers to our suite of products that support lending solutions sold through financial institutions. These products include debt protection and credit insurance.
DOFU 6-2025
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