Above: U.S. Air Force photo by Tech Sgt. Marvin. R. Preston

Before Mark Miller, a Sergeant in the Army National Guard, was deployed to Iraq in early 2003, he and his wife Jill discussed how their monthly budget would change in his absence.

“We realized more money would come in, so, to eliminate financial ‘surprises,’ we agreed that I would limit my purchases to $500 unless we had a chance to discuss it first or it was an emergency,” said Jill Miller. Now that her husband has returned home, the couple’s advance planning and communication has paid off with more funds in the bank.

As the Millers discovered, preparing for deployment involves more than packing. While on active duty, monthly bills, taxes, and even a broken washing machine will still need full attention, possibly on a tighter budget, as many service members’ income levels decrease during activation.

Since you can’t predict when or where you’ll be called to serve, the best time to ensure your household is mission-ready is long before you receive your orders.

As you sit down with family and friends to create a deployment readiness plan, consider the following:

PUT IT IN WRITING
Eliminate confusion about how to handle financial or legal matters by creating an estate plan. Your JAG office can help create most of the documents at no cost, such as a durable power of attorney. This document, provided it meets your financial institutions’ standards, will allow a designated person to manage financial and legal activities for you, such as filing taxes or changing investment allocations. You also can work with your JAG office to draft a last will and testament, a living will and a health care directive.

“While it wasn’t easy to think about ‘what if,’ creating wills and a power of attorney ultimately gave us both peace of mind knowing that important decisions had been made,” said Miller.

HAVE A BACKUP PLAN
Losing your ATM card is typically a small nuisance, but it can be a huge hassle when deployed. To prepare, it’s important that someone at home can resolve any financial issue that may arise.

Check with your financial service providers to add the name of your spouse or trusted friend or relative to your credit cards, banking and investment accounts to give them access as needed. You also may want to add their name to other household accounts, such as your utility and phone accounts.

Consider asking a family member or friend to handle your financial obligations during deployment. Discuss your financial situation in detail, including what bills are due each month and what emergency funds are available. While the Internet can keep you in touch with your finances, knowing someone you trust is making sure bills are paid on time can help alleviate additional stress and distraction.

GET FIT TO FILE
Taxes are still due every April 15, so it is beneficial to discuss how you will file for taxes if you are deployed. A family member or friend can exercise the durable power of attorney you created to file a tax return on your behalf. Or, if you typically serve in a combat zone or hazardous duty area, you may be eligible for an extension.

With the passage of the Military Family Tax Relief Act, review what types of claims, credits and deductions are now available to you. For example, Reserve and National Guard members may be eligible for an “above-the-line” deduction for certain non-reimbursed travel expenses.

INSURE PEACE OF MIND
Life insurance is difficult to discuss, but giving your loved ones a financial security blanket will help put your mind at ease. Consider whether the standard Servicemen’s Group Life Insurance (SGLI) is enough to meet your needs, especially if you have dependents. A general rule of thumb is that adequate life insurance protection should cover seven to 10 times your annual income.

“When we reviewed our situation, we determined that SGLI would not be enough to meet our financial obligations, so we obtained additional life insurance, making sure our new policy excluded a war clause in case something happened to Mark during a mission,” said Miller.

Health care coverage is another important consideration if you have dependents. Discuss whether they will continue medical, health and vision coverage with your current employer, or if you will use the Department of Defense’s TRICARE program.

PROTECT YOUR PROPERTY
Your insurance policy should do more than collect dust. If your home has appreciated, you may want to increase your homeowners insurance coverage to cover the cost of rebuilding your home in today’s market. Updating your renters insurance policy may be wise if you purchased new furniture or added other valuables to your apartment.

If your home will be unoccupied during deployment, notify your insurance company and make arrangements with a relative or friend to secure and protect your property, or store valuables in a commercial storage facility as an alternative.

Discussing how your vehicle will be used during deployment may prompt additional insurance adjustments. If someone else will drive your car, you may need to add that person to your policy. However, if your vehicle will be properly stored, you may be able to adjust and even reduce your coverage depending on where you live.

FUND THE FUTURE
If you contribute to a Thrift Savings Plan (TSP) or other retirement plans, such as a 401(k) or an IRA, be sure to contact the plan administrator to verify that your beneficiaries and their contact information is up-to-date before you deploy.

Since time is your best ally when saving for retirement, thanks to the benefits of compounding interest, set up electronic deposits for your retirement account to continue saving during deployment.

TRACK DOWN DISCOUNTS
To help ease financial pressure, take advantage of discounted services your providers may offer for deployed military personnel, such as no international fees on ATM cards
and reduced credit card interest rates.

The Millers reaped the benefits of the Soldiers and Sailors Civil Relief Act, which requires lenders to cut interest rates on existing loans to active duty military members to six
percent or less from the date they deploy to when they are discharged
from active duty.

“By obtaining verification of Mark’s deployment in writing from our JAG officer and sending it to our mortgage lender, our interest rate was reduced, and we were protected from penalties if our mortgage payment was late,” said Miller.

TAKE INVENTORY
Once your plan is in place, make copies of crucial documents, such as your will and insurance policies, and store them in a safe deposit box that you and the person you designate can access. Create an inventory of all of your financial and insurance account and policy numbers, passwords, phone numbers and mailing addresses for you and a family member or friend.

When in doubt about the best strategies for your particular situation, consult with a financial planner to determine the best course of action for you. While preparing the homefront for deployment can be a difficult exercise, making important financial, legal and insurance arrangements ahead of time will help get you in shape for your next mission.

James Moon is a Deployment Response Center Program Manager for USAA. Moon
retired from the United States Army in 2000 as a Lieutenant Colonel after more than 21 years of service.