Financial Prep for Extended Deployment During the Iran Conflict

Joe Wallace

Extended deployments connected to the Iran conflict can catch some service members and military families off guard. When orders change unexpectedly, or return dates are unclear, having outdated estate documents or lacking financial preparation makes it harder to manage bills and bank accounts, not to mention important legal decisions back home.

Whether you’re deploying alone or leaving a family behind, preparing for a longer absence can prevent unnecessary problems. What do you need to do to prepare for an extended tour of duty financially? It’s not just about where you send monthly payments and savings funds; it’s also about preparing for the worst-case scenario. Estate planning counts.

Financial Prep for Extended Deployment During the Iran Conflict

Getting your finances in order and creating an estate plan are things every deploying service member needs. Estate planning helps prevent financial stress for loved ones in case of death, and it doesn’t have to be an overwhelming process.

Armed Forces Mutual defines a will as an anchor document specifying how assets are distributed after death. Through it, a service member can also designate guardians for minor children. Without one, state intestacy laws determine how assets are distributed, which may not reflect what the service member actually wanted. Your will should be updated regularly.

Power of attorney is just as important, and it’s not one-size-fits-all. A POA grants a trusted person the authority to make financial and legal decisions in a service member’s absence. 

There are two types of POAs:

• A general (durable) POA grants broad powers
• A limited (specific) POA restricts authority to a set time or purpose

An advance healthcare directive covers a different kind of worst case: incapacitation rather than death. It combines a living will, which outlines preferences for medical treatment, such as life support or resuscitation, with a medical power of attorney that names someone to make healthcare decisions if the service member can’t communicate. 

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Help With Your Estate Plan

You don’t necessarily have to navigate estate planning yourself or pay for private legal assistance. Service members and military families have several resources to help them prepare documents and understand their options.

Your installation’s legal assistance office or your unit may provide estate planning services to you or your family members at no cost. Military attorneys can help you determine which documents you need, prepare them, and answer questions about your individual situation.

Military OneSource offers planning tools and access to assistance for military families. Life insurance also needs a place in the conversation. If you have Servicemembers’ Group Life Insurance (SGLI), make sure the beneficiary information on your policy fits with the rest of your estate planning decisions.

Getting Your Finances Ready Before Deployment

Aside from estate planning, there is so much you can do on your own before you or your loved one ships out.

Start by locating your important legal documents. Your will, power of attorney, and medical directives should be current and stored somewhere your loved ones can access them if necessary. Be sure to complete any additional steps included in your unit or service’s pre-deployment guidance.

The  Servicemembers Civil Relief Act (SCRA) also offers financial and legal protections for eligible service members. For example, you can have interest rates reduced on certain debts you took on before entering military service, including qualifying student loans.

Credit Alerts

You can also protect your credit while you’re away by placing an active-duty alert on your credit report. The alert tells businesses to take extra steps to verify your identity before opening new credit in your name. 

There’s no charge to add or remove one, and you only need to contact one of the three major credit bureaus. That bureau must notify the other two. An alert lasts for one year and can be renewed as needed to cover a longer deployment.

Auto-Pay

Setting up automatic payments can keep routine bills from becoming a problem while you’re gone. A bank or credit union can help you arrange recurring payments, particularly if that’s where your military pay is directly deposited.

Make sure to review your budget before you leave. Knowing which expenses continue or change during deployment gives you a better idea of how much money you’ll need to keep available each month.

Vehicle Issues

Vehicles and other property may need attention if they’re going to sit unused for months. Talk to your insurance company before you leave about your car, home, and other insured belongings. Depending on your circumstances, your insurer may suggest adjusting your coverage to ensure your property has the protection it needs.

Some installations have storage areas for cars, trucks, motorcycles, boats, and RVs. You can also ask a relative or friend to periodically check your property, which can help you catch problems before they become more serious.

Use Deployment as an Opportunity to Save

Deployment may also give you access to savings opportunities that aren’t normally available. Your installation’s Personal Financial Manager (PFM) or Personal Financial Counselor (PFC) can explain which programs apply to you and how to participate.

Two options to ask about are the Thrift Savings Plan (TSP) and Savings Deposit Program (SDP). Contributing service members receiving combat-zone pay can have it deposited in a retirement account while they’re gone. The SDP is available to troops serving in designated combat zones and offers a guaranteed interest rate, making it an attractive way to build savings during deployment.

Taking advantage of these programs can turn deployment into an opportunity to strengthen your finances while you’re away, rather than simply putting your financial life on hold.

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Don’t Put Off Planning

An estate plan puts safeguards in place so your finances, property, healthcare decisions, and other personal matters aren’t left unresolved when you’re unavailable to deal with them.

• Without your own instructions, state intestacy laws determine who inherits assets that become part of your estate. The people entitled to inherit under those rules may not be the same people you would have selected yourself.
• Taking care of estate planning before deployment puts those decisions in your hands. It can also make settling your affairs less complicated for surviving family members and potentially limit the time and expense associated with probate.
• Your loved ones shouldn’t have to guess about your intentions during a medical emergency or after your death. Estate planning gives them written instructions they can turn to when important decisions need to be made.

A deployment doesn’t stop bills or other responsibilities back home. Through a power of attorney, you can authorize someone you trust to take care of financial or legal tasks when you aren’t there to handle them yourself. Including a POA in your pre-deployment preparations can keep everyday matters moving.

Don’t overlook the beneficiaries named on your accounts and benefits, either. Those choices can become outdated as your life changes. Review them after events such as marriage, divorce, or the birth of a child so the people currently listed are still the ones you want to receive your assets.

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