Benefits of Excess Share Insurance
Excess Share Insurance is one of the best, and least expensive, ways to grow your credit union’s share base and gain member support. It’s a known fact that as consumers age, they become more sensitive to the risks they are willing to assume when it comes to investing their hard-earned savings and accumulated wealth. Older members are less likely to want to speculate in the market, and more likely to want to deposit their funds in the safest, most secure place… and that could be your credit union. As baby boomers retire, they become more conscious of the safety of their principal, and Excess Share Insurance can help raise their comfort level when placing large deposits with your credit union.
Also, as credit unions continue to pursue stronger relationships with local businessmen and businesswomen, they are finding that merely holding a member business loan with these community leaders doesn’t provide them with the full service package most banks offer, but with ESI’s Excess Share Insurance, credit unions can offer the local small business man or woman greater insurance (up to $500,000) on their daily clearing accounts and longer term capital investment accounts... double that available from banks and thrifts.
The basic coverage available to members of a federally insured credit union is as noted below:
*Note: Not every federally insured credit union purchases ESI’s broad coverage. Your credit union may very well have chosen to offer Excess Share Insurance on certain types of accounts, such as IRAs, or money market accounts. Furthermore, any credit union can choose to provide less than the maximum $250,000 of protection per federally insured account, so please check with ESI or your credit union to determine the exact type of policy they currently have with ESI and the actual limits of coverage in effect.
ASI Primary Insurance with ESI Excess Share Insurance
For credit unions with ASI's primary share insurance, which provides coverage of $250,000 per account, ESI's excess share insurance adds an additional $250,000 in coverage. This makes each account of a credit union member insured up to $500,000.
ASI's vs. ESI's excess share insurance
There is no difference in cost or coverage between the excess share programs offered by ESI and its parent company, American Share Insurance (ASI). The program available to you depends on the state in which your credit union is based. See our coverage map.
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