Military Benefits

What you need to know. 

by Whitney Bailey

TRICARE 

TRICARE is the military’s health plan for all service members and their dependents.  National Guard/Reserve members and their dependents are also eligible if the service member has been activated for more than 30 days.  Using a military installation as the health care service provider is not a requirement.  Mail order prescription service is also available.

This dental program is voluntary, and premium-based.  Coverage is available to all active-duty service members, National Guard/Reserve members and their dependents.  Service members must have at least 12 months remaining in their service commitment at the time of enrollment. 

DeCA is a chain of 284 commissaries offering groceries at just 5 percent over cost.  This small mark-up covers operating costs.  Shopping at DeCA saves the average shopper 30 percent on their grocery bill.  Purchases can be made at the commissary or online.

Stocking everything from car seats to refrigerators, AAFES offers a vast array of products through retail stores, catalogs and online.  Shoppers save an average of 20 percent over retail stores and proceeds support the United States Army and Air Force Morale, Welfare and Recreation (MWR) programs.  All purchases are tax-free.

Equivalent exchanges are run by the Navy (NEX) and the Marines (MCX). 

VA Loans 

VA-guaranteed home loans are available to qualifying service members for the purchase or refinance of a home.  No down payment is necessary, and there are no mortgage insurance premiums.  (Though a funding fee is wrapped up in the loan.)  Interest rates vary by lender and market conditions.

SGLI (Servicemembers' Group Life Insurance) 

A heavily subsidized life insurance policy, SGLI premiums are just 7 cents a month per $1,000 of insurance regardless of the service member's age.  All service members are covered for the maximum benefit of $400,000 on their first day of active duty unless they opt to decline or reduce coverage.  Reservist and National Guard members receive full coverage if they actively drill once a moth.  Coverage is also in effect for 120 days following separation or release from duty.

TSP (Thrift Savings Plan) 

The federal TSP is available to all service members and employees of the U.S. government.  The TSP is similar to a traditional 401k and matches a percentage of each member’s pre-tax contributions.

SDP (Savings Deposit Program) 

This program is only available to service members serving in combat zones.  It’s an easy way to save extra money during a deployment.  All or part of a service member’s pay earned in the combat zone, up to $10,000 a deployment, may be deposited into this account.  Interest on the account accrues at an annual rate of 10 percent and compounds quarterly.

AFVC (Armed Forces Vacation Club) 

This vacation club is just one of many discounted travel programs available exclusively to service members and their families.  AFVC offers “space available” condominium vacations at resorts around the world for just $329 a week.  Most space is available during the off season  and on short notice.

For more information, and links to other valuable military resources, visit MilitaryBenefits.com or MilitaryOneSource.com.