World War Two ended more than 81 years ago, in 1945, with Victory in Europe (V-E) Day on May 8 and Victory over Japan (V-J) Day on August 15.
Some 12% of the U.S. population, or about 16 million people, served in the armed forces during the war. Of those who served, fewer than 50,000 are still alive, according to the Department of Veterans Affairs.
According to the Census Bureau and the Department of Veterans Affairs, between 15.8 and 18 million veterans of World War Two and the conflicts since are living in the U.S. today.
As the wars of the twentieth century fade from public memory, financial and retirement planners often don’t ask whether a client is a veteran. Yet there can be significant federal, state, and even county-level benefits for veterans, their spouses, and their survivors. Too often these benefits go unclaimed because families don’t know they exist or wrongly assume they don’t qualify.
The benefits below can add up to real money: thousands of dollars in burial costs, tax-free income, lower borrowing costs, and help with health care and education. If you or someone in your family served, take a few minutes to see what might apply.
Burial in a VA national cemetery is provided at no cost, including the grave or niche space, opening and closing of the grave, and perpetual care. That can be a significant savings, since burial plots in some areas of the country can exceed $10,000.
If the burial is in a non-VA cemetery, the VA provides a modest inscribed marker or headstone. Even a simple marker can run $500 or more.
There is also a modest reimbursement toward funeral costs ($1,032), plus a separate plot allowance of the same amount for burial in a non-VA cemetery. Families also receive a presentation flag, and a color guard if available.
The government provides free replacement of military decorations and honors to veterans and their families. Over the years, these items are often lost, and in many cases the family doesn’t even know they were awarded. A request can be made through the National Archives eVetRecs system or by submitting Standard Form 180 (SF-180).
Historically, the quality of care in the Veterans Administration (V.A.) medical system was wildly uneven from one facility to the next. By most measures, the system has improved markedly.
The V.A. medical system provides primary care, mental health care, surgery, and prescription services. Eligibility for enrollment is based on income, special categories (e.g., Purple Heart recipients, former P.O.W.s), and service-related conditions. Co-pays and costs also depend on several factors. Some states also provide veterans’ homes or health cost “bonuses.” The system can be a true lifeline for veterans with diminished retirement savings.
Given the different eligibility tiers and the wide variety of programs, it’s best to contact your local V.A. office or county veterans assistance office.
Modest tax-free pensions are available to certain wartime veterans who are 65 or older, or who are totally and permanently disabled. These pensions are subject to income and net worth limits. In some cases, surviving spouses who have not remarried and minor children may qualify for a survivors pension. There is also an additional benefit for veterans who need help with daily living or are confined to their home. Contact the V.A. to find out about eligibility and start the paperwork to claim any benefit.
There are substantial college and job training benefits for veterans and their qualified family members. The Post-9/11 GI Bill covers full in-state tuition at public colleges, or up to $30,908 a year at private schools and job training programs, along with a monthly housing allowance and a stipend for books. The benefit runs for 36 months. Spouses and children of a former P.O.W. or a veteran with a service-connected disability may qualify for Dependents’ Educational Assistance, and families of service members who died in the line of duty may qualify for the Fry Scholarship.
There is also a group of benefit programs for specific groups (Vietnam Era nurses, etc.). The application process can be started on the V.A. website.
A V.A. mortgage guaranty is available to veterans for the purchase of a home. The benefit is reusable and good for life. The guaranty can mean lower borrowing costs, the ability to put $0 down, and no private mortgage insurance requirement. Veterans with full entitlement have no loan limit, so the benefit works in almost any real estate market.
The Small Business Administration (S.B.A.) also offers special low-cost financing options for veterans.
The V.A. makes life insurance available to all members of the Armed Forces. On discharge, this coverage can be converted to term coverage through Veterans Group Life Insurance or to a whole-life policy, and veterans with a service-connected disability may qualify for guaranteed whole-life coverage through VALife. The Veterans Affairs website can direct you to the right online portals. USAA also offers favorable life insurance and other insurance products to active service members, veterans, and their close family members.
When gathering information for family financial planning, one question should always be asked: “Are you a veteran?” This helps make sure all possible benefits are identified and used. These benefits can be a lifeline, especially for someone of modest means or someone who outlives their retirement savings.
Asking the question and learning a bit about their experience can also deepen our understanding of a client and, in a way, acknowledge their contribution to the country.
For informational purposes only. The information is not intended to provide specific advice or recommendations, and all investments involve risks, including the loss of principal.
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