Do you know about these veteran financial benefits?

Post-service life is not easy, and many military veterans struggle with various challenges when they try to reintegrate into civilian society. Our government recognizes the sacrifices made in the line of duty, and because of this, there are some veteran financial benefits that any ex-military should know about.

These are more than just a “thank you.” They are an investment in the future of our veterans and their families, and they are so important for their well-being after service. Our veterans should be able to have a secure future, but many of them are not aware of all the benefits they can access.

So read on and discover some amazing veteran financial benefits anyone should know about.

1. Survivor Benefit Plan

The Survivor Benefit Plan, also known as  SPB, is an incredibly useful program that takes care of the family of the service member after their passing. There are two distinct components: an optional election for retirement and the basic, no-cost automatic coverage for active duty and reserve members.

SBP allows you to provide a continuous stream of income for your loved ones (spouse, former spouse, or dependents) through a monthly annuity. Considering that they might have a difficult time without your help, we believe that it is a good idea to invest in the Survivor Benefit Plan.

If you compare the cost of SBP to basic life insurance, you might be surprised by how low the costs are. Without a doubt, this is a budget-friendly alternative to ensure the future of your loved ones.

All you have to do is choose who your beneficiaries are, and when the time comes, the money will go directly to the ones you want to support. The premiums are generally deducted from your retirement pay and are a good way to get peace of mind knowing your family is protected.

Keep in mind that you are not automatically enrolled in the SBP program, and you have to actively choose to participate once you retire. To be eligible, you need to have at least 20 years of service.

Also, Survivor Benefit Plan payments are taxed according to the federal income tax, but there are some states that can offer a partial or full exemption.

We consider that this is one of the veteran financial benefits worth knowing about, and this is why we presented it on this list.

2. TRICARE For Life

If you are a veteran 65 years old or older, get ready to navigate the healthcare system more effectively because this is one of the veteran financial benefits that is made to simplify things for those who served the county.

TRICARE For Life (TFL) is a program that was created to close the gap between Medicare and TRICARE benefits. Basically, TFL is just a secondary insurance that manages to cover all the costs that Medicare doesn’t, including deductibles, copayments, and even some exclusive services that are not normally covered by Medicare.

The best part about this one of the veteran financial benefits is that you don’t have to switch between the plans. When you use a service that is not covered by Medicare, TFL is applied immediately for eligible veterans, so you don’t have to worry about your healthcare needs.

To enroll in TFL, you need to be a veteran, have both Medicare Part A and Part B, be a TRICARE beneficiary, and you will be automatically enrolled. It is best to know that TFL doesn’t restrict you to TRICARE providers, which means you can easily control your healthcare choices.

Why is this one of the most important veteran financial benefits? Because it substantially reduces your healthcare expenses and gives you the chance to access almost any medical service you need.

3. VA loans

Homeownership is a distant dream for many Americans, but hopefully, veterans can take advantage of the VA loan program and maybe open some doors that will allow them to get a home of their own.

VA loans are one of the best veteran financial benefits, which makes homeownership more affordable, and their advantages are unmatched by traditional mortgages. We say this because the interest rates for these loans are incredibly small when compared to conventional options.

We also need to mention that there are no down payment loans, which means you can get a home without having a large savings account.

Private mortgage insurance (PMI) is a thing of the past if you are part of the military or a veteran and want to take a VA loan, which means your monthly payments and overall loan cost are greatly reduced. There is a VA funding fee, but generally, it is much lower than PMI, and many times it is financed into the loan amount.

If you already have a VA loan, you need to know about other great veteran financial benefits, such as the VA’s Interest Rate Reduction Refinance Loan (IRRRL) program. This allows you to refinance your existing mortgage, and if you are lucky, you might be able to get some even lower interest rates, which can further reduce your monthly payments.

The best thing about VA loans is that this is a lifetime benefit. Once you are eligible, which generally means just honorable service, you are allowed to use the program multiple times. Your VA loan benefit will always be there for you, so why not take advantage of this one of the veteran financial benefits?

4. Veteran Affairs disability benefits

Military service can cause various service-related disabilities, and because of this, there are so many veteran financial benefits. However, VA disability compensation is more than just some financial aid. It’s a way to express gratitude and an attempt to make the lives of veterans easier after they served the country.

Based on the severity of your service-related disability, the VA disability rating system determines how much money you will receive monthly. This is a tax-free income stream that is supposed to help veterans navigate day-to-day life when they also have to handle a disability.

Besides this, you get access to VA healthcare services that are specifically made to match your service-related conditions. Also, your dependents become eligible for Dependency and Indemnity Compensation (DIC). If something happens to you, they will get financial support during that difficult time.

Ok, so you have the monetary compensation, but did you know that there are many states that can offer you so much more? From free national park passes to property tax reductions, you might take advantage of them if you are eligible for Veteran Affairs disability benefits.

We strongly believe that veterans deserve all the support they can get, especially when they try to transition back to civilian life. Most of the time, this is not easy, and if the government can support them financially, this is a great thing, and we totally support it.

This is why it is best to be informed about your veteran financial benefits and, if you are eligible, take advantage of them.

If you want to read more and learn about your veteran benefits, this book might be really helpful: Veterans Benefits for You: Get What You Deserve
You should also read: 5 Best Retirement Saving Tips For People Under 44 Years Old