On Veterans Day, we honor those who have served our country with valor. For veterans, it is also an opportunity to explore the financial benefits available to them and their families. These include a variety of insurance products and tax strategies that could have a significant impact on their financial independence.
Insurance benefits for veterans
One of the most substantial financial benefits accessible to veterans is their eligibility for various insurance plans. Through the Department of Veterans Affairs (VA), veterans have access to life insurance, health insurance, and home insurance policies designed to provide coverage tailored to their unique needs.
Life insurance
Various programs offer affordable, comprehensive life insurance coverage to veterans, service members, and their family members, providing a death benefit to help financially protect their loved ones.
- Veterans’ Group Life Insurance (VGLI) – covers veterans with term life insurance after they leave service.
- Servicemembers’ Group Life Insurance (SGLI) – coverage for servicemembers while serving.
- Family Servicemembers’ Group Life Insurance (FSGLI) – coverage for servicemembers’ spouses and children who rely on the financial support of the servicemember.
Health Insurance
Veterans’ health care benefits provide a range of services from preventive care to surgeries and prescriptions. Those who served in active military, naval, or air service may qualify for VA health care as a valuable supplement or alternative to traditional health insurance.
Home loan program
The VA Home Loan program helps veterans become homeowners – a significant step towards financial independence. This program offers lenders a guarantee in the event of loan defaults, which may lead to more favorable home loan terms and lower interest rates for veterans.
Tax benefits for veterans
Beyond insurance benefits, veterans have several strategic tax advantages. Being aware of these can ease their financial burden and lead to significant savings.
- Tax-free disability benefits – Disability compensation is a tax-free monetary benefit paid to veterans with disabilities that are the result of a disease or injury during active military service. This benefit is not taxable income, resulting in a lower tax liability.
- Property tax exemptions – Some states offer property tax exemptions for veterans, particularly those with a service-related disability. These exemptions can reduce their overall tax burden, making homeownership more affordable.
- Tax preparation services – Veterans and their families have access to free tax preparation services through the Volunteer Income Tax Assistance (VITA) program. This program can provide considerable savings on tax preparation and ensure that veterans are taking advantage of all their entitled deductions and credits.
In conclusion, Veterans Day serves as a reminder for veterans and their families to revisit their benefits, which can lead to substantial savings and provide financial independence for themselves and their families.
SWG4800556-0925d This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed. Use of these programs does not guarantee specific financial outcomes, tax savings, or independence.
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