Previous posts this month have covered financial tools and practices that can make us financially strong. Any sports team or military strategy relies on a strong defense, actions, and tools that protect. The same is true for our finances. We need to protect ourselves from financial hazards and perils.
- The Servicemembers Civil Relief Act (SCRA) provides a range of legal and financial protections for active-duty military members, reservists, and members of the National Guard. Protections include interest rate caps on pre-service debt, default judgments, foreclosure actions, eviction and lease termination protection, protection against repossessions, insurance protections, and income tax deferrals.
- Stay informed to protect yourself against identity theft and scams targeting military families. Threats include imposter, phishing, romance, benefit, charity, home loan, and investment scams. Protect yourself by verifying sources, use secure websites, monitor your financial accounts and credit report, and educate yourself.
- Insurance is the best known financial defensive tool. Insurance transfers the risk of a financial loss from you to the insurer for a cost, and is vital for your financial security and peace of mind. Some important types of insurance you need:
Insurances to Consider:
- Life Insurance – Life insurance provides financial support for the family in the event of the service member’s death. Proceeds from life insurance can cover final expenses, debt repayment, education costs for surviving children, and financial support for everyday living expenses. Servicemembers’ Group Life Insurance (SGLI) and Family Servicemembers’ Group Life Insurance (FSGLI) offer low cost protection for military members and families.
- Health Insurance – Access to medical care is vital for members and their families. TRICARE offers comprehensive health care for members of the uniformed services and their families.
- Automobile Insurance – It does not take much of a car accident to cause a lot of damage. With car and truck prices approaching $50,000 and more and medical care costs skyrocketing, you must protect yourself with adequate auto insurance. Most states require minimum coverage levels, but in most cases that may not be enough. Shop around to find the best coverage and premiums by shopping around often.
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