How does The Family Security Plan make money if the program costs credit unions nothing?

Article Written By: Lauren Hoeffel

The truth behind our no-cost Member Engagement Program and why it works for credit unions

One of the first questions we hear from credit union leaders is also one of the most important:

“If your Member Engagement Program costs our credit union nothing, how does The Family Security Plan make money?”

It’s a smart question.

In fact, if you weren’t asking it, we’d probably encourage you to.

When something sounds too good to be true, it’s natural to wonder where the catch is. That’s exactly why we believe in answering this question openly and honestly.

The short answer is this:

Our no-cost Member Engagement Program is funded through members’ voluntary purchase of supplemental insurance, not by the credit union.

There are no hidden implementation fees, no monthly invoices, and no surprise consulting costs. Instead, we’ve built a partnership model that succeeds only when we create value for both your members and your credit union.

Let’s explain exactly how it works.

First, let’s clear up a common misconception

Some credit union executives assume that because there isn’t an invoice, there must be hidden costs somewhere.

That’s understandable.

But our business model is actually very straightforward.

We partner with credit unions to educate members about financial wellness and protection. During those conversations, when appropriate, we introduce affordable supplemental insurance solutions designed to help protect their income, health, and families.

If a member decides the coverage is right for them, they can choose to enroll.

If they don’t, that’s okay too.

There is never an obligation to purchase anything.

Our conversations are consultative, not transactional.

So where does our revenue come from?

The Family Security Plan has been serving credit unions for more than 50 years through a partnership model built on voluntary insurance enrollment.

Here’s how it works:

1. 1. We engage members on behalf of your credit union.
   2. We help them better understand their financial situation.
   3. We educate them about available protection options.
   4. If supplemental insurance is appropriate and the member chooses to enroll, we receive compensation through those insurance products.

That revenue allows us to provide our Member Engagement Program without charging your credit union implementation fees or monthly service costs.

Simply put:

We succeed when we help members make informed decisions, not when we pressure them into buying something they don’t need.

Why this model works

The reason this approach has worked for decades is simple.

Everyone benefits.

Members Receive Education

Many people don’t realize where gaps exist in their financial protection.

For example, they may have:

• • No income protection if they’re unable to work
  • Limited life insurance through an employer
  • No accident coverage
  • No protection against the financial impact of a serious illness

Our role is to educate members about these potential risks so they can make informed decisions.

Sometimes that conversation leads to insurance.

Sometimes it doesn’t.

Either outcome is perfectly acceptable.

Credit unions strengthen member relationships

Our conversations often uncover opportunities that extend well beyond insurance.

Members may express interest in:

• • Auto loans
  • Home equity loans
  • Mortgage refinancing
  • Credit cards
  • Certificates
  • Savings products
  • Business accounts
  • Financial planning

When appropriate, those opportunities are referred back to the credit union.

The result is a stronger relationship between the member and their financial institution.

The Family Security Plan earns revenue

When members voluntarily purchase supplemental insurance, we receive compensation that supports:

• Member engagement specialists
• Training
• Technology
• Reporting
• Strategic planning
• Ongoing partnership support

That’s how we’re able to continue investing in our credit union partners without charging them directly for the program itself.

Does this create a conflict of interest?

This is another fair question.

Some executives wonder whether compensation tied to insurance sales will make members feel pressured.

The answer is no.

Our approach is built around education first.

Our representatives are trained to understand a member’s financial picture before discussing any coverage.

That means listening first.

Asking questions.

Understanding needs.

Only then do we determine whether a supplemental insurance product may be appropriate.

If it isn’t, we don’t recommend one.

That’s important because trust is everything.

Credit unions have spent decades earning their members’ confidence.

Our responsibility is to strengthen that trust—not jeopardize it.

Why credit unions choose this model

Credit unions constantly balance two competing priorities:

• • Delivering more value to members
  • Managing expenses responsibly

Adding new initiatives often means hiring staff, purchasing technology, or increasing operational costs.

Our partnership model removes many of those barriers.

Instead of asking your credit union to build an insurance department, hire additional employees, or manage another vendor relationship, we provide an experienced team that works as an extension of your organization.

That allows your staff to stay focused on what they do best while we help support member education and engagement.

Beyond insurance: creating value across the credit union

One misconception is that our program exists only to offer insurance.

In reality, insurance is just one piece of a much larger member engagement strategy.

Our conversations can help:

• • Increase awareness of credit union products and services.
  • Generate qualified lending opportunities.
  • Improve member retention
  • Strengthen financial wellness initiatives.
  • Support non-interest income goals
  • Create more meaningful member interactions.

Insurance is often the starting point—but the relationship doesn’t end there.

Questions every credit union should ask before choosing a partner

Whether you’re evaluating The Family Security Plan or another organization, don’t be afraid to ask direct questions.

For example:

• • How is your program funded?
  • Are there any hidden fees?
  • How are your representatives compensated?
  • How do you ensure members aren’t pressured?
  • What training do your engagement specialists receive?
  • How do you measure success?
  • How do you protect the member experience?
  • Can you provide references from current credit union partners?

A trustworthy partner should welcome these questions—not avoid them.

Why transparency matters

At The Family Security Plan, we believe transparency is one of the foundations of a successful partnership.

That’s why we’re comfortable answering questions that many organizations shy away from.

We know today’s credit union leaders are looking for more than a vendor.

They’re looking for a strategic partner they can trust.

That trust begins with honest conversations about how the relationship works, how revenue is generated, and how everyone’s interests remain aligned.

When members receive valuable guidance, credit unions strengthen relationships, and our organization earns revenue through voluntary enrollments, everyone benefits.

It’s a model that has helped us build lasting partnerships with credit unions across the country for more than five decades.

The bottom line

So, how does The Family Security Plan make money if the Member Engagement Program costs credit unions nothing?

Through voluntary supplemental insurance enrollments, no fees charged to your credit union.

Our success depends on educating members, earning their trust, and helping them make informed decisions about protecting what matters most.

When members benefit, credit unions benefit.

And when credit unions succeed, so do we.

That’s not just our business model; it’s the foundation of every partnership we build.

Have questions about how our partnership model works?

Schedule a conversation with The Family Security Plan to learn how our no-direct-cost Member Engagement Program supports credit unions without adding costs.

Book a Discovery Call