Insurance Basics Every Credit Union Member Should Know

What Is Insurance, Really?

Insurance is a financial safety net. You pay a premium—monthly or annually—and your insurer helps cover costs if something unexpected happens. Understanding how insurance works gives you more control over your finances.

Insurance matters because:

• Life is unpredictable
• Emergencies can be expensive
• The right coverage protects your savings
• It supports a stronger financial plan

Think of it as a key part of your financial wellness strategy.

The Most Common Types of Insurance Members Should Know

Auto Insurance

Auto insurance protects you financially if you're in an accident. Common types of auto insurance coverage include:

• Liability insurance — covers damage you cause to others
• Collision coverage — protects your vehicle in an accident
• Comprehensive coverage — protects against theft, storms, and more

Homeowners & Renters Insurance

Whether you own or rent, protecting your space and belongings is essential.

• Homeowners insurance covers the structure of your home, personal belongings, and liability.
• Renters insurance protects your personal property and usually costs less than a streaming subscription.

Life Insurance

Life insurance provides peace of mind that your family or dependents are financially supported.

Two common types include:

• Term life insurance — affordable, straightforward, set for a specific number of years
• Whole life insurance — lifelong coverage with a cash value component

Knowing the difference between term and whole life insurance helps you choose coverage that fits your life stage.

Supplemental Insurance

Supplemental insurance—such as accident, disability, or identity theft coverage—adds a layer of financial protection beyond basic policies. These can be especially helpful if you have a high?deductible health plan or want extra peace of mind.

Key Insurance Terms Every Member Should Know

To understand your insurance policy, you’ll want to get familiar with a few essential terms:

• Premium: The amount you pay for your insurance coverage
• Deductible: What you pay out?of?pocket before your insurance pays
• Claim: A request for your insurance company to pay for a covered event
• Coverage limits: The maximum amount an insurer will pay
• Exclusions: What your policy does not cover

Remember: Lower premiums often mean higher deductibles, so it’s important to balance affordability with protection.

How to Know If You Have Enough Coverage

Not sure if your insurance fits your needs? Ask yourself:

• Could I afford a repair, rebuild, or loss without insurance?
• Have there been major life changes (marriage, a new home, a new car, a child) that require an insurance update?
• Do I know my policy’s coverage limits and exclusions?
• Have I done an annual insurance review recently?

If the answer is “not really,” your credit union can help with a no?pressure review.

Why Your Credit Union Cares About Your Insurance

As a member?owned financial cooperative, your credit union works to protect your financial well?being—not to sell you something you don’t need. That’s why we:

• Partner with reliable insurance providers
• Offer competitive and sometimes exclusive credit union insurance benefits
• Help you compare policies with your best interest in mind
• Make sure your insurance coverage aligns with your goals
• When members feel financially secure, our entire community thrives.

Need Help Reviewing Your Coverage? We're Here for You.

Insurance doesn’t have to be complicated. Whether you're exploring auto insurance, homeowners insurance, renters insurance, life insurance, or supplemental coverage, we’re here to help you make confident, informed decisions.

Have questions—or want to schedule a personalized insurance review? Our team is ready to help protect what matters most.