2021 Insurance Guide

NAVIGATING TRICARE HORROR STORIES

PREVENTING IDENTITY THEFT

Tangible solutions during challenging times

’M GOING TO BE HONEST — Insurance isn’t my favorite thing to think about. But this year has shown us that we should expect the unexpected.

In this issue, we talk to families who have lived through PCS horror stories and come out stronger on the other side. After arriving in Japan, the Coates family found out that the truck carrying their belongings caught on fire. It’s not just urban legend; these things happen. The Coates learned that nothing was salvaged from the fire. With a steely spine, they got on with it. They filed claims and picked up the pieces. Renter’s insurance was a huge help to them during a tremendously challenging time.

My conversation with Navy spouse Suzanne Bannister brought home the real-world implications of the pandemic. While stationed overseas, Bannister unexpectedly lost her dad to COVID-19. In the mix of the grief, the difficult logistics of planning a funeral, and arranging flights home during a pandemic, she hit pause and thought about insurance and how she and her family should be covered.

How incredible to stop, take a deep breath, and reflect upon the ways to best protect yourself and those you love. I can’t think of a better story to showcase the grit, grace, and practicality of military families.

We hope these resources we’ve collected will help you and provide comfort during both the good and the difficult times.

INSURANCE IS PET

RIGHT FOR YOUR FAMILY?

BY ANDREA DOWNING PECK

“How much is that doggie in the window?”

While the popular children’s song doesn’t provide the answer, pet parents know furry loved ones are expensive.

With a three-dog household, Army veteran and Coast Guard spouse Tammie Corbin estimates her pets’ healthcare costs total about $3,000 a year, a figure easily reached when semiannual wellness checks, vaccinations, heartworm prevention, dental cleanings, supplements, and medications for two senior dogs are tallied.

“And, as anyone with dogs knows, there are always unexpected visits to the vet — my hound dog ate a bee, my old man got in a tussle with a dog at daycare and needed stitches, my other old man sprained his ACL/ MCL, etc.,” Corbin explained.

That’s why two years ago

Corbin decided to purchase comprehensive pet insurance policies to cover her pets’ routine wellness expenses like checkups, yearly vaccines, and preventative care in addition to veterinarian bills related to accidents and illnesses. By her calculations, Corbin says annual premiums ($800 per dog plus a $250 deductible) are “almost break even” with her known yearly expenses. Plus, the policies provide peace of mind that big ticket injuries or illnesses will be covered.

“I view pet insurance as I do any other insurance,” Corbin explained. “It comes with predictable costs to offset financial risk.”

Is pet insurance a smart choice for your family? Maybe.

Los Angeles veterinarian Dr. Jeff Werber, an EmmyAward winning contributor to CNN and other news programs, calls the decision a “crapshoot.”

“Sometimes you’re going to win, and it’s great,” Werber said. “Clients that have had that big cancer scare or where the pet got hit by a car and insurance paid out $10,000, they won.”

But, he adds, other clients find they pay more in premiums each year than they receive in reimbursements.

About 20 companies offer pet insurance, including several such as Embrace (available through USAA) and Nationwide that offer military discounts. Types of plans range from wellness only, accidentonly, and accident-illness to comprehensive accidentillness with wellness coverage. According to the North American Pet Health Insurance Association (NAPHI), the average annual accident-and-illness premium for dogs in 2019 was $585.40 and for cats was $349.93. Premiums are based on a pet’s species, breed, age, sex, location, and policy parameters selected, such as annual deductible, reimbursement limit, and reimbursement percentage.

When comparing insurance plans, ask:

Does the company offer a wellness plan or comprehensive policy?

Are exam fees covered?

Are alternative therapies covered?

Does the policy exclude all preexisting conditions or only incurable conditions?

Can the policy be used overseas?

Does the company offer a medical history review to determine which conditions will be considered preexisting?

If you know what coverage you need and how much of a benefit you need to be paid out, then you can compare apples to apples.”

Without pet insurance, veterinarian bills after an accident or illness, like cancer, can quickly hit four figures.

“No one would ever want to choose between their savings and the best care for their pet, but that’s the place many pet owners find themselves when an unexpected accident or illness costs thousands of dollars to treat,” Sara Radak, Embrace Pet Insurance communications director, said.

“Pet insurance provides peace of mind that you’ll always be able to do what’s best for your pet without worrying about how it will affect your bank account.”

To decide the amount of coverage needed, North American Pet Health Insurance Executive Director Kristen Lynch suggests pet owners research any health conditions associated with their breed of dog or cat and the cost to treat those potential problems.

“With pet insurance in particular, you get what you pay for,” Lynch said. “So, if you’re paying a higher premium, it’s very likely [because] you have more comprehensive coverage.

Because some pet insurance companies are quick to reject claims due to “pre-existing conditions” or other technicalities, Werber suggests some pet owners instead may want to consider using monthly auto-debits to fund a separate savings account for their pet’s healthcare.

“Before you know it, when that rainy day comes and the dog is 7 years old and gets cancer, you have $5,000 or $6,000 put away,” he said, adding a healthcare credit card such as CareCredit is another alternative.

“My recommendation is not to ignore doing something,” Werber said.

How the pandemic has impacted the insurance industry

BY SUSAN MALANDRINO - SPONSORED

After losing her father to COVID-related complications last year, U.K.-based Navy spouse Suzanne Bannister says that the pandemic has put things in perspective for her family.

“The loss of my dad was one of many whammies over the past year,” she said.

While home from their OCONUS duty-station for the funeral, the family decided to increase their life insurance coverage.

Bannister says that she knew she needed to make a change but the sudden loss and associated financial challenges served as an impetus to modify her policy, increase her husband’s coverage, and take out policies for her children.

“I have more responsibility now than I had previously, and my husband and I wanted a policy that reflected that,” Bannister said, echoing a trend that insurance companies are noticing.

Change in perspective

Connie Markovich, president and CEO of Uniformed Services Benefit Association (USBA), says that companies like USBA have seen an increase in inquiries for a variety of products over the past year. While the increase may not be a direct result of the pandemic, the value of adequate coverage has come to the top of mind for many.

Markovich says a great deal of these changes are positive for customers and the industry as a whole.

“We’ve had to redefine how we satisfy our customers, what their needs are, and how we meet them,” Markovich said. “We’ve had to become more nimble, even more responsive. It’s a competency that we have brought to our customers

during this challenging time.”

New and varying interest

USBA noticed an increase in inquiries from younger beneficiaries in their 20s and 30s.

“This generation is not as afraid to look for information as other generations might have been in their 20s,” Markovich said.

“People want a longer-term product at a lower price,” Markovich said. “We have seen a shift to a lower age demographic. When the age drops, they’re eligible for our long-term products. Our 20 Year Group Level Term has grown in popularity for this reason.”

Markovich also noted that the company is seeing an increase in their TWO for ONE® Group Level Term, a policy that pays on the first to die. “We never know who will pass away first - and with TWO for ONE®, it pays two benefits if both die in the same accident. That can provide additional peace of mind to a family,” she said.

“It takes out the element of the unknown. It doesn’t matter which one of us goes first. We’re going to have protection.”

Jennifer Gray, a Navy spouse based in Arlington, Virginia, recently modified her family’s insurance coverage late last year. While the pandemic wasn’t her primary reason, financial security after her husband’s upcoming retirement was a key focus.

“From a financial standpoint, we wanted extra coverage in

case something happens,” Gray said. “With retirement looming and the future loss of the Navy benefit, combined with so much uncertainty, we wanted to make sure we were thoroughly covered.”

Meeting the need through technology and streamlined business practices

Throughout the past year, COVID-related restrictions have dramatically impacted the way insurance policies are written. For example, how do you underwrite someone if you cannot do a health screening on them? How do customers get information if in-person meetings are no longer viable?

For Markovich, these challenges have provided new opportunities for companies like USBA.

The company has invested heavily in its digital infrastructure to ensure that clients can access the information they need online and via mobile. According to Markovich, people are online, and they want to access quotes without hassle.

Markovich says that USBA has met that challenge by allowing real-time insurance calculators and a variety of other tools to provide customers with accurate quotes.

With face-to-face meetings limited between clients, companies, and partners, new solutions have presented themselves here too. “Companies are finding ways to communicate with their customers, partners, and vendors that have made a real difference,” Markovich said.

Coordination with doctor’s offices, the electronic transfer of medical records, and strategic partnerships have made getting insurance easier for the client. “That communication has been important. With COVID, it stopped, and now it’s opening up again,” she said.

Bannister and her family took advantage of the accessibility and ease of technology with their recent policy change. “We were able to transfer digital records to our insurance company and that made the process so much easier,” she said.

“Finding ways to adapt and deliver became paramount this past year,” said Markovich as many people have a new-found awareness about life.

“I truly believe this has changed the way we will go forward. And I would say for the better.”

Connie Markovich, president and CEO of USBA.

RENTER’S INSURANCE PROVIDES RELIEF FOR

You’ve likely heard plenty of PCS horror stories. It goes something like this:

• Dozens of containers, with military household goods, fall off a container ship, sinking to the bottom of the ocean.

• A moving and storage company auctions off military member’s items in non-temporary storage.

• Movers lose control of an heirloom grand piano on casters, and it ends up smashed to oblivion.

Imagine your shipment burning up in a fiery crash.  Unfortunately, this scenario was a reality for Jenn Coates. It happened to her express shipment.

Her family was relocating from Norfolk, Virginia, to Japan in the fall of 2014.

The Coates family packed up their belongings in midOctober, a few weeks before heading across the ocean themselves. The plan was for the shipment to arrive in Japan before they did.

As most military families know, things don’t always go according to plan.

After arriving at their new duty station, the family checked in with the Personal Property Office on base several times for updates on the progress of their shipment.

“They kept saying, ‘It’s still in transit,’” Coates said.

Finally, in December, she got an update.

“I got an email from Personal Property in the U.S. — and it said our shipment had been destroyed. My stomach sunk. I was frozen. I thought, ‘How could this happen?’”

The email went on to explain that the truck with the Coates’ shipment was in a fiery crash in Georgia. The accident happened in October, just days after their packout.

“Mid-December, and we were just hearing about it. It turns out, our belongings never even made it to California to be put on a ship. They certainly weren’t stuck in transit,” Coates said.

After the fact, the Coates family was told they should have been notified within 48 hours that their shipment was destroyed.

Cribs, clothes, toys, dress uniforms, flight suits, aviation manuals, and flight logs were among the items scorched in the crash.

“Two months after it happened, I saw the pictures taken from the side of the road.  I could tell I didn’t want those things back because everything had been doused in fire retardant spray,” Coates said.

The Personal Property Office in Japan cut the family a check for incidentals and things they needed to replace right away, and their renter’s insurance policy took care of the rest.

“ It made me realize more than I ever had how important it is to make sure you’re covered. It didn’t dawn on me that this moving catastrophe would fall under renter’s insurance. We weren’t renting, we were in transit,” she said.

Alejandra Fernandez-Rubio has a horror story of her own. She has no trouble remembering the date it happened, as it was on her wedding anniversary.

“We were moving from Fort Stewart to Fort Leonard Wood. We knew we’d be there less than six months, as it was for training,” she said.

The couple hung on to the basics, taking everything with them they’d need to get by for six months.

“After a long day of driving, we stopped in a hotel for the night in St. Louis. In hindsight we were only two hours away, so we probably should have just continued on to post,” Fernandez-Rubio said.

They parked their SUV and U-Haul in the hotel lot, and that evening they got a call from their friend who was also moving and traveling with them.

“She was taking her dog out, and she noticed a couple of people breaking into our SUV. She called us, and I watched from the window, calling the police, and my husband ran down to the parking lot while they stole suitcases and bags,” said Fernandez-Rubio.

Unfortunately, the thieves who were parked in a lot next door to the hotel, got away.

The examples mentioned are PCS nightmares from the days before a packout. But for some military families, they are more than fictional tales. And for many of them, having renter’s insurance — while it doesn’t make the situation any easier to stomach — is a financial lifesaver.

Alejandra and Maj. John Fernandez-Rubio had more than $12,000 worth of goods stolen during a PCS from Fort Stewart to Fort Leonard Wood.

“They stole more than $12,000 worth. Computers, jewelry, clothes, uniforms, even our passports,” she added.

The first call was to the police — the second, to their insurance company.

“ We filled out the forms listing the stolen items, the value, purchase date, etc. They covered more or less everything we asked for and paid us back what we thought was a really fair amount,” she explained.

This, after nearly canceling the policy before their move.

“We got so lucky. I was bugging my husband to cancel the insurance when we moved out of our house because I thought we could save a few bucks. When my husband called to do that, the woman he spoke to at our insurance company strongly advised him not to do that,” said Fernandez-Rubio.

The decision to remain covered saved them thousands of dollars.

“ It was a learning experience,” she added. “ You don’t think about those in-between times.”

Insurance agent and financial advisor Regina K. Leigh, spouse of a military retiree, agrees.

“So many people don’t see the value in renter’s insurance because they don’t know what it covers,” Leigh said.

She advises calling your insurance company every time you experience a major life event to discuss what changes you might need to make regarding insurance coverage.

“ Whether it’s a marriage, the birth of a child, a death, a

big purchase, or a move, it’s a good opportunity to talk to your agent. All of those things impact your financial situation and quite possibly your coverage.

“ The last thing you want to learn is that you don’t have coverage when something happens,” Leigh said.

After all, a PCS is plenty to handle without a horror story of your own.

“

Whether it’s a marriage, the birth of a child, a death, a big purchase, or a move, it’s a good opportunity to talk to your agent. All of those things impact your financial situation and quite possibly your coverage.”

- Regina K. Leigh, insurance agent and financial advisor

It’s not just investing or insurance — your future

BY JESSICA MANFRE - SPONSORED

The American Armed Forces Mutual Aid Association (AAFMAA) is the oldest continuous nonprofit financial solutions provider in America. But that distinction alone isn’t important to them — you are.

Chief Operating Officer Jerry Quinn is passionate about educating the military community on the importance of financial health and planning for the future. But it’s more than just his professional purpose. He has spent the last 35 years serving in the Army, including deployments in support of Desert Storm and Operation Iraqi Freedom, and homeland mission defense here in the United States. Quinn currently serves as commander of the 316th Quartermaster Battalion in Oklahoma for the Army Reserve.

Despite his current role, he still remembers what it was like to be a 19-year-old enlisted soldier.

“When I was in Army basic training in 1985, the military was allowing various organizations on post in the name of financial education. I was sold a whole life insurance policy,” Quinn explained, shaking his head. “I was a single soldier with no assets to my name. It was the last thing I needed… It was enriching that life insurance company and the insurance salesman himself. AAFMAA would never allow that.”

Since Quinn’s experience, the Department of Defense has made strategic changes to the types of institutions that are allowed on base, to protect its members from practices that may be dishonest.

“I had a great career in banking for 25 years. I was the director of military affairs for a large nationwide bank,” Quinn said. He received a call about a position at AAFMAA one day and was floored by their background and mission. He immediately put his name in the hat for consideration.

“Somehow, someway, I got picked. I am blessed to be here.”

The organization is dedicated to providing a number of financial products including insurance, mortgages, and wealth management.

“It’s an important notion that at AAFMAA, we take care of the military families as soon as they are able to make that commitment to emergency savings, retirement, and appropriate life insurance,” Quinn said. He shared that as soon as military families

realize they have extra money to save and are financially able to begin focusing on retirement years, AAFMAA will be there to support their needs.

The National Foundation for Credit Counseling completed a survey in 2019 that revealed that nine out of every 10 active service members and around 84% of their spouses have worries about personal finances. In that same year, the Blue Star Families Survey found that financial issues were the top stressor for military members, veterans, and their spouses.

Although families may not want to talk about it, the possible need for life insurance should also be an important discussion for all military families. While many may plan for retirement, that often is in line with the

idea that the member will be receiving their pension. Should there be a premature death, things change rapidly.

“We are here to do that for people, to give them that needs-based analysis to help them make informed decisions about their future,” Quinn said. “At AAFMAA, we have the tools and resources to help guide you in financial preparedness.”

When a military member or veteran purchases a life insurance policy with AAFMAA, they will receive access to all of the benefits associated with the organization. This includes things like talking with the benefits team who will assist with military benefits and entitlements. Their VA claims coordinators will assist with

VA disability claims. When the worst happens, their survivor assistance team will walk alongside families to receive the benefits and entitlements they deserve.

Despite his successful career both as a civilian and in the Army Reserve, Quinn was outspoken about his financial mishaps along the way. Those were the lessons that helped him build empathy for others and the drive to want to help them succeed.

“The evolution for me was longer than it needed to be. I think my advice to military members is to identify a trusted mentor or multiple mentors,” he said. “Allow yourself to evolve. Don’t beat yourself up for your past but get started on your financial future today.”

For more information, visit www.aafmaa.com

“Don’t beat yourself up for your past but get started on your financial future today.”

Auto insurance — less is NOT more

The unexpected building block for financial success

BY LILA QUINTILIANI, AFC ® Military Saves Senior Program Manager

Why do I need insurance?

There’s an old saying: insurance is something that you buy and hope to never have to use. No one *wants* to experience a car accident, a wind storm, or a catastrophic life event. However, if the last year has taught us nothing else, it has taught us that emergencies can happen anytime, anywhere.

Sometimes people balk at paying for something that they aren’t guaranteed to use. But that isn’t the point of insurance policies; we buy insurance as protection against financial catastrophe. We also buy it to take care of our loved ones.

Nevertheless, many people don’t truly understand the risks they face if they carry too little, or worse, no insurance at all. I’m going to concentrate on three types of insurance where I see issues pop up again and again.

Most states require that you have basic auto liability insurance, which covers legal fees, bodily injury or death, and property damage to others in an incident where you are legally responsible. Some states also require motorists to carry personal injury protection (PIP) and/ or uninsured motorist coverage. But these are just the bare minimum coverages.

None of the liability coverage pays for damages to *your* car or *your* injuries if you cause an accident or hit an object. You would have to add collision coverage for that. And if your car is damaged by hail, vandalism, flood waters, or is stolen and not recovered, it’s not covered unless you have comprehensive insurance.

I have seen people who only had the minimum coverage on their auto policy have a vehicle stolen and then have their lender seek to recover the entire balance of the loan since the collateral for the loan no longer existed.

Auto insurance premiums vary widely between insurers, and they also depend on factors such as area of residence, type of vehicle, miles driven, and credit score. It pays to shop around and occasionally compare policies, especially if you make any major life changes.

Insurance isn’t exactly the most exciting topic, but adequate insurance is absolutely the cornerstone for building wealth. In my years as a financial counselor, some of the biggest missteps I have witnessed have not come from missing out on the latest hot stock or investing in crypto currency; rather, they have involved being uninsured or underinsured.

Homeowners insurance — the devil is in the details

Homeowners insurance

isn’t required by law, but if you have a mortgage, chances are good that your lender will require you to have a policy. Where I see people stumble is in not understanding their coverages and thus not realizing how much financial risk they are taking on.

Most policies have deductibles, the amount you must pay before your insurer covers anything. This can be a flat dollar amount, but it can also be a percentage. And it is not uncommon for certain types of claims, such as wind, hail, earthquake, or hurricane, to carry a higher deductible than for other types of claims. So, for example, if a house with $300,000 coverage is impacted by a hurricane and has a 10% deductible for that type of damage, the homeowner would have to come up with $30,000 out of pocket before the insurer paid anything at all.

And on the topic of natural disasters, homeowners should be aware that most policies do not cover flooding, whether it’s from storm surge, hurricane, or sewer backup. A separate policy, which usually costs only a few hundred dollars a year, is necessary.

When it comes to covering the stuff inside your house, not all policies are created equally. Some insurers offer replacement cost value coverage, which covers the true cost to replace your old items with new ones. Conversely, actual cash value insurance (which is very common) only covers the current value of your items after depreciation, which is considerably less.

If you don’t own a home, you should definitely look into renter’s insurance. Many clients don’t realize how necessary (and inexpensive!) this coverage is.

Renter’s insurance not only covers damages and liability caused by negligence, such as accidentally letting the bathtub overflow or having your 9-year-old knock so hard she breaks the glass on the front door (ask me how I know about that one!), but it also covers your belongings, even if they are in a car or a hotel room.

Life insurance — do you have enough?

Life insurance is not pleasant to talk about, but it is essential to have if you have someone in your life (whether it’s a spouse, children, or a parent) who will be adversely impacted financially by your death.

I am personally a fan of term life insurance, and SGLI (Servicemembers’ Group Life Insurance) is a low-cost term life insurance policy that covers military members for $400,000 (unless declined). Military spouses are automatically covered for $100,000.

My point of caution here is that both service members and spouses may need more life insurance than what SGLI provides.

While there is no hard and fast rule, insurance agents often say you should have coverage that equals between 7 and 10 times your annual salary. But if you own a home, or have several children, or a lot of debt, your needs might vary. And stay-at-home parents should investigate what full-time, in-home nannies would cost when it comes to figuring out how much life insurance to buy.

Peace of mind

Financial health absolutely depends on being adequately insured. Policies should be checked on a regular basis, especially if there have been major life changes, such as marriage, purchasing real estate, or having children.

Insurance can save you from economic ruin, and that’s a pretty amazing return on a relatively small investment. But there’s another indefinable benefit to consider: the peace of mind you get when you know that you have minimized your risks and provided for yourself and your family.

And no, the government does NOT cover your personal property if you are living in the barracks or in government housing. You still need renters insurance! Want

MENTAL USING TRICARE FOR HEALTH HEALTH

BY JILLIAN JOHNSON

We had just PCS’d to our current duty station, and I was having hard time adjusting to the changes brought forth by the move. Throughout my life, I have struggled with anxiety.

After relocating and leaving my support system behind, I struggled with loneliness. My husband’s schedule changed, my children were unsettled, and I was caring for everyone else’s needs above my own.

I started to have what I call “dark” thoughts — and they scared me. So, I sought help.

I called the base clinic and scheduled an appointment with my new Primary Care Manager (PCM). They were able to fit me in within two days. During my appointment, I told my PCM what I was experiencing.

He directed me to the mental health office. There, a counselor recommended I attend one of her seminars to “change my thinking.” I walked out with a pamphlet for a class, feeling worse than I did before, and with no tangible help for mental health resources.

I followed up with my PCM and he prescribed an antianxiety medication called Zoloft and wished me luck. I still didn’t have the answers I needed. My depression continued to worsen.

A few weeks later I learned that I didn’t need a referral to seek help off base. This was something that my providers neglected to tell me and should have known.

I found a TRICAREauthorized clinical psychologist and scheduled my appointment within a week without a referral. I received a dual diagnosis of Attention Deficit Hyperactivity Disorder and Complex Post-Traumatic Stress Disorder as a result of past trauma. I have been receiving Cognitive Behavioral Therapy for over a year, and I am now properly medicated.

The result? I’m flourishing in ways I never knew I could, and I can uphold our family in times of crisis without losing my sanity.

Since my diagnosis, I have spoken openly about my experiences in the hopes of ending the stigma surrounding mental healthcare in the military community and reaching other spouses who may be in the same predicament.

If you find yourself in a similar situation, here are steps you can take to get help through TRICARE:

1. Visit the TRICARE website to search for an authorized provider near you. TRICARE’s website is transparent about its mental health coverage. It gives a full breakdown of the types of mental health providers out there and what each of them can do to help their patients. For more information and to search for a provider, click here . You also have the option of asking your PCM for a recommendation — you will likely have a better experience than I did. Make sure to let your PCM know that you are seeking treatment, as they may be able to help you manage your medications if needed.

2. Schedule an appointment with a counselor. You can schedule an appointment with a TRICARE-authorized mental health provider without a referral. However, you will need a referral for a psychoanalysis or mental health evaluation. This is something your mental health provider will most likely be able to assist you with.

3. If you are diagnosed, inform the Exceptional Family Member Program (EFMP) coordinator. This step is required if you receive a diagnosis regarding your mental health. They are usually located in the clinic of your local installation. The EFMP coordinator can help you coordinate your treatment

and make sure you continue to receive services — no matter where you PCS — by registering for the EFMP program. Click here for more information regarding all of the services provided by EFMP.

Some additional resources to consider:

Military OneSource also offers free non-medical counseling. If you are unsure of the type of help you need, or you and your family are facing some difficulties related to military life, Military OneSource can help. They provide non-medical counseling to families to help build resilience. If they can’t help, they can help you find better resources depending on your needs. Call their toll-free line at 1-800-3429347 (CONUS) or visit their international directory for OCONUS calling options.

Your local Military FamilyLife Counselor (MFLC). MFLCs are counselors that specialize in helping military families overcome most of the obstacles that military life brings. They can also help you seek outside help, should you need it, and provide you with additional resources regarding your situation.

If you or a loved one is contemplating suicide, please call the National Suicide Prevention hotline at 800-273-8255.

I remember when my mental health started to spiral out of control.

EXPERT ADVICE ON PROTECTING YOURSELF

FROM IDENTITY THEFT

BY EMMA COMERY

We’ll be honest. We’ve always thought of identity theft as a risk so far-fetched that it could never happen to us. But a little research on the topic revealed that identity theft is a serious threat to consumers and it can happen to anyone.

Identity theft resulted in consumer losses of $14.4 million, according to the 2019 Identity Fraud Study by from Javelin Strategy & Research. The same report states more victims are paying out of pocket for these crimes too. While old-school identity theft still occurs in a variety of ways, from stealing wallets and mail to forging change-ofaddress forms and dumpster diving for discarded personal data, the most common way it occurs today is digitally

In today’s digital age, we share more of ourselves on the internet than ever before. Many of us type personal information like our social security number, address, or credit card number into a website daily without a second thought.

What happens when cybersecurity fails and identity thieves gain unfettered access to our information? When someone steals your identity, they can wrack up thousands of dollars of debt in your name and cripple your credit score, which could lead to being denied a loan, mortgage, or even employment through no fault of your own. Are you prepared for that?

To demystify the whys and hows of identity theft insurance, AmeriForce Media (AFM) spoke with insurance expert and Air Force veteran Don Clark of Carlisle Insurance. Here’s what we learned:

AFM: How does identity theft insurance work? What might it cover?

CLARK: Identity theft insurance covers expenses incurred to restore your identity. Although policies vary, typically you’d be covered for out-of-pocket expenses directly associated with reclaiming your identity. This could include postage, notary cost, copying, lost wages, and legal fees. Some policies could also cover the cost to monitor credit for future signs of identity theft. Many companies offer identity theft policies and those policies can/will vary from carrier to carrier. Some homeowner policies will have an identity theft endorsement included in their policy, so be sure to check that out before purchasing a stand-alone policy.

AFM: What would you say are the pros and cons of identity theft insurance?

CLARK: Since the coronavirus pandemic swept the globe, there has been a drastic rise in identity theft and fraud as scammers attempt to exploit the situation. These thieves will attempt to obtain your information through scams such as phishing, impersonation of financial institutions, health insurance carriers, or medical relief

companies. Most notably they are seen impersonating a co-worker or office email as a technique to obtain the desired information. Use your gut; if the email smells funny it’s probably a phish.

AFM: Is identity theft insurance something you would recommend to anyone, or are there certain careers/ situations you would more highly recommend it for?

CLARK: I would highly recommend identity theft insurance to any and everyone. The cost is minimal but the protections afforded are substantial. Most companies are going to include a “how-to” guide that will really help the insured take the appropriate steps to protect themselves and their family from identity theft. Identity thieves are not picky, they just want to aggregate the information. It’s the old “throw it against the wall and see what sticks” theory.

AFM: As an Air Force veteran, do you think there are any aspects of identity theft and identity theft insurance that are particularly pertinent to active-duty service members, veterans, and their families?

CLARK: Although I do not feel that military families are more targeted than others per se, I would encourage those military members that are deployed to ensure that they have a policy in place. Not all countries take cybersecurity as seriously and, considering the many channels that are required to communicate with loved ones from abroad, the opportunity for malfeasance is greater.

AFM: What are some things about identity theft insurance that might surprise people?

CLARK: There are good and bad parts to identity theft insurance. Good — inexpensive, different levels of coverage, reimburse you for expenses. Bad — it doesn’t replace items that may have been stolen such as cash from a bank account or money from a 401k. I believe everyone should have some level of coverage; what that level is depends on the individual family.

Insurance expert and Air Force veteran Don Clark answers questions about identity theft insurance.

A MILITARY FAMILY’S TO GETTING

CHEAT SHEET

After a year of staying at home, Americans are longing to get away. A recent report revealed that millennials and higherincome travelers are eager to return to traveling, according to the 6th State of Travel Insurance findings. But as uncertainties loom from COVID-19, it makes financial sense to consider travel insurance before committing to any plans.

Military life is known for its curveballs even with the best-laid plans. Travel insurance is a natural fit for vacations because a service member’s schedule can flip on a dime. In addition, the more complex and expensive the trip, the more likely you will want to purchase travel insurance.

What is travel insurance?

Travel insurance is separate insurance that covers specific risks that come with traveling. Every policy is different, so be sure to read carefully before picking the right policy for you. Common coverages include medical expenses, medical evacuation, travel delays, travel interruption, baggage delays, legal referral services, and passport replacement assistance. Some plans also offer a “cancel for any reason” option, and certain plans will allow you to cancel if military obligations prevent you from traveling.

What coverage do you need?

Coverage for military duties is a big feature if you’re a military family so look for a plan with that stipulation. Then consider what type of travel emergencies would be financially hard for you. For example, if you’re stretching your budget for the trip, an unexpected hotel stay due to a volcano eruption, strike, or hurricane might be hard to cover.

Be sure to check out what the policy will cover. Many policies don’t cover certain high-risk activities such as scuba diving. If your trip includes anything that might be considered high risk, be sure it is covered, or choose a different policy. Some policies don’t cover pre-existing conditions, so you may find yourself without benefits if a chronic illness or injury flares up on your trip. In that case, there may be a separate preexisting conditions waiver that can be added to a policy for an extra cost.

There are also the “cancel for any reason” plans. Details of this coverage vary. Some will reimburse at one rate if there’s a justifiable reason for the cancellation, or a different rate if you just change your mind or your reason doesn’t fit the guidelines. This is a great option for military families as well in case plans have to change because of your service member’s schedule.

Where do you buy travel insurance?

There are a variety of different ways to purchase travel insurance. Sometimes, you’ll be offered coverage when you book parts of your trip, such as airfare. If you purchase through a service provider, check into whether your coverage is just for that service or for other parts of your trip. If you book through a travel agent, they will probably offer you coverage through

their preferred provider. Otherwise, you can purchase coverage yourself. For example, USAA members can purchase coverage through its affiliation with Travel Insured International. There are even plans that will cover all travel during a year for a single premium.

When do you buy travel insurance?

Buy travel insurance as soon as you book a trip. Policies will have a timeline for when you have to purchase, and the price may increase the closer you get to the travel dates. Many policies have a “free look” period, during which you can cancel the coverage and receive a full refund of the premium paid.

How much does travel insurance cost?

Costs depend on the coverage provided and can vary from a few dollars for a single flight to a few hundred dollars for a long, complicated trip overseas. Coverage for additional family members on the same itinerary may be reduced, sometimes significantly.

Life is uncertain, and military life has a reputation for the unknown. If you’re spending a significant amount on a vacation, consider whether travel insurance will prevent financial loss in case you can’t travel, your travel is disrupted, or you have medical or legal issues arise during your trip.

AmeriForce Media is always accepting submissions for your financial readiness-related stories. Got a resource to help military families improve their bottom line? Are you a service member who has tips to share with others? Submit your story at  susan.malandrino@ameriforcemedia.com.