DALLAS–TriscendNP, a CUSO providing executive benefits and business protection solutions, said it has partnered with Goldenwest Credit Union and Dollar Associates to launch a new CUSO, BenefisCU.
Seven other credit unions are also involved in the new venture.
“Credit unions, one of the fastest growing marketplaces for non-profit executive benefits, have not typically had the opportunity to participate in, or realize revenue from, executive benefits and business protection sales,” the organizations said.
The backers of the new CUSO added BenefisCU will provide participating credit unions a revenue-sharing opportunity to market advanced insurance solutions to their credit union executives, members, commercial account holders and peers.
”We are big believers in the collaborative movement through CUSOs and have been truly impressed with the development of this project over the past several years,” shared Dennis Dollar, partner in Birmingham, Ala.-based Dollar Associates, LLC, “As a result, we invited some of our most innovative credit union relationships to participate in this exclusive equity membership opportunity. We see big things happening at BenefisCU and are excited to be a partner in this CUSO.”
The Initial Offerings
According to the company, the primary initial product lines for BenefisCU will include executive income benefits, business protection insurance, split dollar retirement plans, 457f deferred compensation, Credit Union Owned Life Insurance (CUOLI), “Section 162” bonus plans, executive disability and long-term care, and advanced insurance protection packages.
“BenefisCU offerings are consistent with the credit union's core business and provide a significant opportunity” said Kerry Wahlen, CEO of Goldenwest Credit Union in Ogden, Utah. "Goldenwest was the pilot for this new initiative over the past three years and has realized substantial non-interest income. BenefisCU will elevate the existing insurance services of credit unions to a new level.”
In announcing the new CUSO, the organizations said, statistically, over the past decade, credit unions have provided for-profit, publicly traded brokerage firms with over $1 billion in commissions. This is “because for decades, the resources necessary to provide advanced insurance solutions such as executive benefits and business protection insurance were largely held captive by these for-profit organizations,” the company said.
‘Inconsistent With CU Mission’
"We believe the current for-profit vendor relationships with credit unions are inconsistent with the mission of the non-profit community and the credit union collaborative spirit,” said Dale Edwards, principal at TriscendNP. “As financial institutions with insurance offerings, credit unions are uniquely poised to benefit substantially from this disruption of business as usual."
In addition to Goldenwest, other equity members in the new CUSO include MAPS Credit Union in Salem, Ore.; Redstone Federal Credit Union in Huntsville, Ala.; Desert Financial Credit Union in Phoenix; Michigan State University FCU in East Lansing, Mich.; Sandia Labs FCU in Albuquerque; University FCU in Austin, Texas, and American Heritage FCU in Philadelphia.
BenefisCU said it is accepting an additional, limited number of credit union equity members. Associate-level membership partners will also be available to qualified credit unions, the CUSO said.
For info: BenefisCU.com/