Financial Planning and Insurance for Newlyweds in the Military

The wedding planning is over. Your big day was amazing. Now comes the fun part—a lifetime with your partner. Being a newlywed is full of joy, excitement, and new responsibilities. But your marriage has an extra special factor—you are a military family.

Navigating the complexities of financial planning and insurance can add an extra layer of complexity for military couples. From frequent relocations to deployment, military couples often face a variety of financial obstacles. Understanding and developing strategies to overcome these challenges is essential for achieving financial stability and success. With careful consideration and proactive steps, newlyweds in the military can prepare for financial security in the coming years.

Budgeting Basics for Military Newlyweds
By understanding your military benefits, creating a budget, prioritizing savings, and seeking guidance when needed, you can build a solid financial foundation for your future together. Things like base pay, health benefits, potential allowances and incentive pay, retirement plans, and insurance are going to impact your bottom line. Sit down with your new spouse and decide what you want the future to look like—considering the challenges military life will inevitably throw at you—and create a plan.

• Develop a comprehensive budget that includes your combined income, expenses, and financial goals.
• Use budgeting tools or apps to track your spending and stay on top of your finances.
• Aim to save enough to cover three to six months’ worth of living expenses and allocate funds for savings, debt repayment, and discretionary spending.
• Build an emergency fund to cover unexpected expenses such as car repairs, medical bills, or home maintenance.
• Seek guidance from financial professionals who understand the unique challenges and opportunities faced by military families.
• Capitalize on resources available through military support services, such as financial counseling and education programs through Military OneSource.

Take the time to familiarize yourselves with the various benefits offered by the military, as they can significantly impact your financial planning decisions. Learn more about Financial Literacy for Service Members in our previous blog post.

Protecting your Spouse with Life Insurance
It’s easy to consider life insurance a no-brainer as a service member. Servicemembers’ Group Life Insurance (SGLI) covers the service member up to $500,000, and Family Servicemembers’ Group Life Insurance (FSGLI) covers $100,000 for the spouse. However, military newlyweds need to evaluate the need for additional life insurance.

Take the time to assess your life insurance needs as a couple. Now is the time to determine if SGLI and FSGLI coverage is enough if something happens to either of you. Will that cover any current debt you have? And funeral costs? How much would you need to replace the household income for the surviving spouse?

Many financial advisors advocate for having life insurance that covers seven to 10 times your annual income. That means if you earn $60,000, your coverage should be between $420,000 and $600,000 of coverage. As your financial—and family—situation changes, you’ll want to make sure your coverage matches your needs. It’s a good idea to reevaluate your coverage needs on a regular basis.

The Right Policy Sets You Up For Success
Life insurance outside what is provided by the military allows you to customize what you need for each spouse. Getting life insurance when you’re young also has advantages, such as lower premium pricing on Term policies—which is always cheaper than if you wait to purchase coverage at an older age. Or purchasing a Whole Life policy designed to provide lifelong financial protection and accumulate cash value with premiums that will never increase.

Uniformed Services Benefit Association (USBA) offers both Term and Whole Life Insurance exclusively to service members, veterans, and their families. Learn more about both types of policies, coverage amounts, and which life insurance is right for you on our website or contact a USBA Product Specialist at 877-297-9235 between 9:00 am – 4:00 pm Central time, Monday through Friday.

Navigating financial planning and insurance as newlyweds in the military can seem daunting, but with careful planning and proactive steps, you can set yourselves up for long-term success and security. Remember, effective financial planning is a journey, and by working together as a team, you can overcome any challenges that come your way.