From active-duty members of the military to longtime veterans, it’s no secret there is an array of financial resources you can utilize to best care for yourself and your family.
However, many don’t know the specifics of some of these great benefits and how they can best be utilized. Here are five ways you could be better caring for your finances as a member of the military:
- Save While Deployed
Service members currently in combat have access to the Savings Deposit Program, a bank account that will collect 10 percent interest to the deposited amount during and for three months after deployment. Money originally deposited to the account cannot exceed $10,000, must be done after deployment, and has to be via cash, check or allotment. To start contributing to your account, contact the finance officer in theater.
- Education for the Whole Family
Many people know that the GI Bill can cover full college education, funding tuition and fees at public colleges for up to three years and for over $25,000 for students at private universities, but the benefits can also apply to spouses and children. Members who have served for at least six years with the intention to continue serving for at least ten years are also eligible to transfer their benefits to their spouse or children. These benefits apply for both undergraduate and post-graduate degrees and can also cover the costs of books and necessities for full-time students.
Former military members may also be eligible for free courses or job training following the events of the COVID-19 pandemic with costs covered by the U.S. military.
- Affordable Mortgage Plans
Whether you are already utilizing a loan from the VA or are looking to purchase a home soon, the maximum amount one can receive for their home mortgage has grown significantly in recent years. Many veterans have been able to buy a home without a down payment while others have been able to lower their current rates by implementing an Interest Rate Reduction Refinance loan. More information on all of your mortgage options can be found on the VA’s website, va.gov. Additionally, the Servicemembers Civil Relief Act can provide protections for your mortgage loans, along with many others, should deployment change your circumstances.
- Life Insurance Discount
Regardless of your health or risk, active-duty military can receive up to $400,000 of life insurance through the Servicemembers’ Group Life Insurance. This total can be obtained for only six cents a month for every $1,000 of coverage purchased, or about $288 a year. Military spouses can also receive up to $100,000 of coverage for as low as $54 a year.
For retired or veteran members, Veteran’s Group Life Insurance has proved to be a popular option, especially for those with health issues. Coverage through this insurance does increase with age and should be compared to other options to find the best deal for you.
- Retirement
The Thrift Savings Plan, a retirement plan available to veterans, is one of the lowest cost ways to save for retirement overall. According to new implementations applied to the TSP in 2018, service members who joined the military from 2018 to the present day, or who opted into the Blended Retirement System from 2006 to 2018, are now eligible to have their retirement funds matched by the Department of Defense, as long as 5 percent of your total income is going into the account.
With these new rules, members can collect up to $19,500 in just a year, with higher capacities available to members over the age of fifty or to those who are receiving a tax-free income from a combat zone.
By Natalie Rodgers
Source: U.S. News
