Updated: Nov 17, 2021
East Lansing, Michigan, November 16, 2021 — Reseda Group is pleased to announce its investment with BenefisCU, a new credit union service organization (CUSO) formed in partnership with Goldenwest Credit Union, Dollar Associates, LLC., and seven other market-leading credit unions throughout the United States.
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. 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 of 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 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, Chief Executive Officer of Goldenwest Credit Union. "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.”
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.
"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."
Current credit union equity members include Goldenwest Credit Union, Ogden, UT; MAPS Credit Union, Salem, OR; Redstone Federal Credit Union, Huntsville, AL; Desert Financial Credit Union Phoenix, AZ; Reseda Group, a wholly-owned Michigan State University Federal Credit Union CUSO, East Lansing, MI; Sandia Labs Federal Credit Union Albuquerque, NM; and University Federal Credit Union Austin, TX; and American Heritage Federal Credit Union, Philadelphia, PA.