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Top 4 Financial and Insurance Tips for Military Families

by Dr Prem Community Writer
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Like most households, military families need to watch their pennies and make sound financial decisions. With this goal in mind, the following four tips can help your family to get the best insurance policies, reach your savings goals and more.

Tip 1: Work with a Financial Coach

Financial CoachMilitary families who hire a financial planner will end up contributing more to their savings and investment accounts. You could work with a financial planner from a national company like Edward Jones or Charles Schwab, or you could opt for one through Military One Source; they specialize in working with military families. Your planner will be a money coach of sorts, encouraging you to make responsible financial decisions. As Military.com notes, during one quarter, military families who work with a financial coach will contribute an average of around $500 more to savings and pay off about $200 more towards their long-term debts, so this one tip can really make a significant difference in your finances.

Tip 2: Use the Out of Sight, Out of Mind Approach to Money

You have probably heard the advice to pay yourself first. Instead of starting with writing checks to the electric company, mortgage holder and credit card companies, make the first payment each pay period to your savings account. To make this as easy as possible and help ensure that your nest egg will grow, ask your bank about automatic savings plans that will take a certain amount out of each deposit and put it into a separate account. This “out of sight, out of mind” approach will help you to stay on track with your savings and not spend every dollar on bills and other expenses.

Tip 3: Review Your Insurance Coverage

Insurance-CoverageIf you are being deployed for military service, you should review your insurance coverage. TDI.Texas.gov advises asking your current insurance agent how the company will handle any issues that may come up while you are deployed. For instance, setting up automatic payments is a great idea; this way your spouse will not have to worry that the policy will be cancelled due to non-payment. If no one will be driving while you are deployed, you might be able to suspend your auto insurance for the time you are away, which in turn will save your family money. If your entire family will be leaving your existing home and moving to a military base, check with your insurance agent to be sure your home will still be covered, how it defines “vacancy” and if it offers coverage for dwellings that are unoccupied for a certain amount of time.

Tip 4: Shop Around for Military Discounts

If you are no longer deployed and settling back into civilian life, research which insurance firms offer discounts to members of the military. For example, USAA saves it’s members an average of $707 on their annual premium when they switch to USAA Auto Insurance. That is a pretty significant chunk of change — one that can be used to pay down credit card debt, go towards savings and investments or simply give you some financial breathing room each month. As you shop around comparing quotes, be sure to see if companies offer a “bundling” option for home, auto and life insurance; this can save you additional money.

Wise Financial Decisions Now Make for a Solid Future

To have a sound financial future, you will have to make a number of great decisions today. Start by looking into a financial coach who is knowledgeable about military families and can help you reach your goals. By tucking away as much into savings as you can, making sure you have the correct insurance coverage and are getting the best possible deals on premiums, you and your family can rest assured you are doing all your can to be smart with your money.

Article Submitted By Community Writer