Preparing for Life Events

Managing Money in the Military

Insurance and Investment Products

Watch out for pitches for insurance and investment products! Just because someone approaches you on base, or in uniform, about an insurance or investment policy does not mean it is a good program or endorsed by higher ups! Anytime you are presented with an investment or insurance product, take time to research it and read the fine print before you sign up. Don’t be pressured into making a quick decision. If you don’t understand it, or cannot get impartial advice, pass on it.

For life insurance, servicemembers should take advantage of the Servicemembers’ Group Life Insurance (SGLI) program. SGLI offers low-cost group life insurance for servicemembers on active duty, ready reservists, members of the Commissioned Corps of the National Oceanic and Atmospheric Administration and the Public Health Service, cadets and midshipmen of the four service academies, and members of the Reserve Officer Training Corps. It is considered an excellent program, the cost is very attractive, and insurance is available for spouses. You can get more information from the Office of Servicemember’s Group Life Insurance at 1-800-419-1473.

Also, be wary about investment plans promoted on base or through other servicemembers. The National Association of Securities Dealers for example, has warned those serving in the armed forces about systematic investment plans that require monthly payments and carry high, up-front costs. NASD’s Investor Alert, Systematic Investment Plans – Educate Yourself Before You Enlist, follows an NASD enforcement action against a brokerage firm selling these plans to military personnel.

Servicemembers Civil Relief Act

The Servicemembers Civil Relief Act is a federal law that protects all Active Duty servicemembers, Reservists and the members of the National Guard while on active duty.

One of the main protections it offers is the opportunity to reduce the interest rate to 6% on debts incurred before you enrolled in the service, if you can demonstrate that your service in the military has a “material effect” on your ability to pay that financial obligation. If, for example, your pay has decreased or necessary expenses have increased, then you may be able to get your interest rates on credit cards, a mortgage, etc. lowered to 6%.

The SCRA may also allow you to terminate an auto lease if you are called into active duty for six months or more, or if you receive orders for a permanent change of station outside the U.S. You or your family may also have protection under the SCRA if you want to terminate a lease for housing that you entered into before you were called into active duty. If your family remains in your rented home and you are unable to pay your rent, you may be able to have a judge stop eviction procedures, provided your rent is less than $2400 per month.

Finally, the SCRA may allow you to defer life insurance premiums while you are on active duty; and to have prior health insurance reinstated without waiting periods or exclusions when you leave active duty.

You can find more details about the Servicemembers Civil Relief Act at http://usmilitary.about.com/od/sscra/

For a Free Consultation with a Certified Credit Counselor call 1-800-210-3481

Get Help!

While the best time to get help is before you need it, it is never too late to learn better ways to manage your money. The two biggest traps consumers fall into when they have debt are:

1. Trying to dig out of a money mess on their own, and
2. Waiting too long to get help.

If you are struggling, or your money situation isn’t getting better, it’s important to get qualified help from someone who can give you impartial advice.

The following are some organizations and resources that can help you create a better financial future for yourself and your family. Thousands of people get help from these agencies each year, so don’t be embarrassed to contact them. It is far better than the alternative!

Consolidated Credit Counseling Services Inc.Ô is a non-profit agency with the mission to assist families throughout the United States in ending financial crisis, and solving money management problems through education and professional counseling. You will find a wealth of free educational materials in our online Learning Center, and you can always call us or visit us online for a 100% confidential, no obligation consultation. Visit ConsolidatedCredit.org or call 1-800-210-3481.

CincHouse.com: CinCHouse is a non-profit organization of military wives. It’s popular web portal was created to help military wives and women in the military manage day-to-day life and get on with the adventure.

Credit Unions: As a servicemember, you are eligible for membership in at least one of several credit unions. Credit unions usually offer very cost effective products and services. Visit www.cuna.org to locate one you can join.

MilitaryOneSource.com is a website provided by the Department of Defense. It offers tools and resources for military families, including financial assistance resources. You can also call them 24/7 at 1-800- 655-4545

Navy Marine Corp. Relief Society, in partnership with the Navy and Marine Corps, offers financial, educational, and other assistance to members of the Naval Services, eligible family members, and survivors in need. Their programs include interest-free loans and grants for emergency needs, needs-based scholarships and interest-free loans for educational purposes, budget counseling, and thrift stores. Visit www. nmcrs.org for more information.

OperationHomefront.net provides assistance with day-to-day issues for military families so that deployed service members are not preoccupied by the crisis at home and can focus on protecting our country. They have arranged assistance such as home and auto repairs, computers, childcare, groceries and infant supplies, and more.

The Savvy Sailor series of books is helpful for those serving in the Navy but offers advice that can be useful for members of other branches of the service as well. Visit www.savvy.onweb.com.

About the author and Consolidated Credit Counseling Services, Inc. Consolidated Credit Counseling Services, Inc. is a consumer- oriented, nonprofit, public education organization. We are an industry leader in providing credit counseling and debt management services throughout the United States. Our mission is to help families end financial crisis and solve money management problems through education and professional counseling.

Gerri Detweiler is Consolidated’s educational director and author of this publication. She has written numerous books including The Ultimate Credit Handbook, which was featured in Money magazine as one of the five best new personal finance books of the year when it was released. Ms. Detweiler has been quoted in thousands of publications including The New York Times and The Wall Street Journal. She co-hosted an award-winning syndicated financial radio program, and has been a guest on The Today Show, Dateline NBC, the CBS Evening News, and CNN. She has testified before Congress and lobbied on behalf of consumers protection measures. She is the former executive director of Bankcard Holders of America, as well as a policy director for the National Council of Individual Investors. She has also served on the Board of Directors for the National Coalition for Consumer Education as well as Experian’s Consumer Advisory Council.