Life insurance "fee" from credit Unions

General
1

My credit union sends me advertisements for life insurance.

  1. I’m presuming that everyone in this room is aware of what I mean.
  1. what’s the downside to sign up
  2. can I open a counter at a lot of credit unions and sign up for multiple “free” life insurance and then have a lot of life insurance for less cost?
  3. why do they send these out, just hoping people will buy the next higher one and/or forget about them but get paid by the credit union?
2

`Although credit union life insurance might be a good place to start, it is typically insufficient for the majority of people’s needs. If you’re serious about obtaining life insurance, you should compare policies to choose one that fits your needs and provides the appropriate level of coverage. Taking up many credit union policies may provide you with some extra coverage, but it is unlikely to be a complete answer and may lead to issues in the future.

3

Having navigated my own share of insurance offers from credit unions and banks, I can tell you that while the “free” life insurance they offer might sound tempting, it often comes with limitations or downsides. These policies are typically quite basic and might not provide enough coverage for your needs. Opening accounts at multiple credit unions to stack up on these policies can be tricky, as each policy might have restrictions on how much coverage you can get or how it integrates with other policies. Credit unions send these offers hoping to upsell you on more comprehensive plans or additional services, benefiting from commissions or partnerships with insurance providers. It’s always a good idea to carefully review the terms and coverage before committing, and consider if you need more comprehensive coverage that might not come from these “free” offers.