USAA’s Response to COVID-19

Like many banking institutions around the country, USAA is trying to help its members out during the Coronavirus Pandemic with a return of $520 million. According to USAA, the bank will return a total of $520 million due to the lockdown causing less driving. Every USAA member with an auto insurance policy before April 1, 2020, will receive a 20% credit on 2 months of premiums within a month. There is nothing additional the USAA member needs to do in order to receive this 2-month credit other than checking their account in a few weeks. Besides the initial 2-month credit, USAA is revamping its services to fit the financial needs of its members.

Message From USAA CEO, Wayne Peacock:

“We understand the impact this pandemic is having on our country, and especially our military community and their families, many of whom also are working on the front lines of the crisis. Returning premiums provides timely help for our members,” said USAA President and CEO Wayne Peacock. “USAA has been facilitating the financial security of military members for nearly 100 years, and this is another way we can serve them well.”

USAA Auto and Property Insurance

USAA Auto Insurance is being adjusted due to the federal guidelines on isolation and stay-at-home orders from state governors. The good news for the hundreds of thousands of active duty military members is they won’t be losing their jobs, like the rest of Americans. However, this doesn’t change the impact sustained by their family members who have jobs outside of the military. With many soldiers living paycheck-to-paycheck this pandemic has been disastrous for every American, regardless of profession. With millions of veterans, active-duty soldiers, and their families unable to pay bills on time, USAA is giving us a reprieve from late fees until June 17, 2020. USAA has vowed to not cancel any car insurance or property insurance policy due to late payments during this time of chaos. If you’re one of the millions of people who’ve lost their jobs and can’t pay your bills on time, call the Auto and Property Insurance office at, 800-531-8722.

USAA Bank

According to FiveThirtyEight, more than 16 million American’s have lost their jobs within the past 3 weeks. Unfortunately, this pandemic has shown no mercy on anyone and is not expected to slow down anytime soon. The first part of the program includes a 90-day credit card payment deferral. Some people may think of this as a way they can spend more money without paying it back. A deferral just means that for 90 days, you won’t have to pay your credit card bill, it doesn’t mean you don’t have to pay it back. USAA is also offering a 60-day payment extension on consumer loans. This means that if you’ve refinanced a home or have a mortgage loan with USAA, you’re not required to make payments for 60 days or 2 months. USAA will include a Home Equity Line of Credit (HELOC) special mortgage payment assistance for those who qualify. Finally, USAA is providing assistance with deposit accounts for business owners in need. A deposit account is simply something like a Saving account where you can deposit money and withdrawal money at any point.

How Do I Qualify For USAA Banking Assistance?

After speaking directly with USAA, I have found that the eligibility requirements are based on USAA membership. Normally, if you’re looking for a HELOC, you’ll need a credit score above 620 and a record of paying your bills on time. However, during this pandemic, USAA is more forgiving to its members in need, so the best way to know is to call 800-531-0832 and they will explain everything to you, directly.

*If you’re not a USAA member and need help with getting out of debt, Freedom Debt Relief is a good option. 

 

Life and Health Insurance

USAA is offering a 60-day extension on all life and health insurance policies, which means if your policy ends today (April 16, 2020), you get the same coverage without any extra fees until June 16, 2020). USAA also offers a 30-day grace period, which means you can pay your bill up to 30 days after the due date without a penalty fee. This will allow members who are living paycheck-to-paycheck enough time to get the stimulus check from the government to help with bills. If you have any questions regarding Life and Health Insurance call, 800-531-8068 for help.

Does USAA Help With Coronavirus Testing?

Yes! USAA will waive all co-pays and deductibles associated with COVID-19 testing and reimburse you for any bill associated with testings. The only catch is you have to be tested after Feb, 4, 2020 and you have to have some form of USAA Medicare Supplement plan. According to Medicare.Gov, each hospital stay will cost you $1,408 for the benefit period in which you enter the hospital. USAA will pay all costs, regardless of the benefit period, if your stay is related to the Coronavirus. The only thing you need to ensure is whether the hospital accepts Medicare. If you’re in the market for life insurance, conduct as much research as possible, starting with our top 10 life insurance list.

Annuities

Most American’s have annuities without even knowing what they are and how they impact your financial health. To keep it as simple as possible,  an annuity is a type of insurance that guarantees you’ll get a steady paycheck for the rest of your life or a specified time by the account holder. It can help protect you against the risks of stock market volatility and outliving your money. There are 2 types of annuities that you should consider, which are Deferred Aunnities and Income Annuities. A deferred annuity is going to help you prepare for retirement, so they’re best for younger workers who plan to work for at least 20 years. Income annuities are best for those who are within 1 year of retirement and want their money sooner rather than later. The best part about an annuity is if the economy tanks and the Stock market crumbles, your money will be safe from the fluctuation. However, annuities don’t earn a lot of money, so you’ll need to keep your money in longer if you want to reap the benefits. An annuity will ensure that no matter what the economy does in the next 20 years, you’ll always have money until you die.

What Does USAA Recommend to Prepare For Financial Uncertainty?

1. Start or Maintain an Emergency FundMost emergency funds are anywhere from 3-6 months of your monthly income put aside for hard times (such as a worldwide pandemic). Personally, I have 6 months of my income placed in a separate account that I don’t touch unless I absolutely need it. Everyone’s financial situation is different, so don’t beat yourself up if you can’t afford o put away 6 months.

2. Revisit Your Budget– Once you put aside your emergency fund, it’s best to sit down and put all of your finances in one place for better organization. By using the budget tool, you’ll know exactly how much money you have and how much you spend every month. Using the USAA online tools will allow you to track what you spend and allow you to see how much you owe every month. I can’t stress enough the importance of good budgeting in a time of such uncertainty.

3. Pay down revolving Debt- Without sounding like a patronizing a-hole, make sure you’re continuing to pay down your debt, if possible. it’s great to see banks supporting Americans going through rough times, but, in the end of the day, you’ll need to keep debt from racking up. If your debt goes unpaid and credit cards get maxed out, banks won’t lend to you when you really need it if you’ve shown you can’t pay your bills.

4. Stay In Contact With Your 1st-Sergeant/Commander- As most troop movements come to a stand-still, there are may soldiers without a home, or legitimate place to quarantine during this pandemic. Commanders are constantly putting out new protocols for soldiers to follow, especially for those in transition from one place to another.

5. Get Advice From Professionals- Each base offers a Military and Family Readiness Center with financial counselors available to provide financial guidance. You can access these professionals for free for active-duty members at their Family Readiness Centers. With the quarantine, they will do online, over the phone, or mail you documents you might need to assist you.