Manage Military Allotments for Insurance Payments

Navigating the complexities of insurance premium payments is vital to ensuring continuous coverage. Setting up a military allotment through the Defense Finance and Accounting Service (DFAS) automates this process for service members by making payments directly from their military pay.

This method is beneficial for many individuals. Some insurance providers, such as the Uniformed Services Benefit Association^® (USBA^®), specialize in offering services that align with the military lifestyle. Understanding how to manage these payments can be invaluable. This guide provides simple steps to start, change, or stop your military allotment for insurance payments.

Understanding Military Allotments
An allotment is a payroll deduction that allows a service member to set aside part of their retired or active duty pay for different expenses. This automated feature streamlines the management of financial obligations such as insurance premiums, mortgage payments, savings contributions, and loan repayments.

How Many Allotments Can You Have?
You can set up to six discretionary allotments from your pay. These may cover a variety of expenses, including but not limited to:

• Insurance premiums through USBA or other insurers
• Monthly mortgage or rent
• Savings or investments
• Personal loan payments
  

Managing Allotments Through myPay
For individuals choosing Electronic Funds Transfer (EFT) to financial institutions, myPay provides an easy-to-use platform to start, stop, or modify allotments:

1. Navigate to myPay.
2. From the main menu, select “Allotments.”
3. Choose the existing allotment you wish to modify, or select “Start New Allotment,” or opt to stop an allotment.
4. Follow the on-screen instructions to execute changes.
5. Confirm by clicking Submit and Finish.
6. Review your transaction history to verify the modifications.

Note: Be patient, as allotments may take time to process. Avoid multiple entries to prevent duplicate deductions.

Altering Insurance Allotments
If your insurance premium changes, please go online to myPay or call DFAS at 800-321-1080 to make updates. If you need additional assistance, DFAS will assist you in updating the deduction amount. Remember, providers cannot stop, start, or modify your allotment on your behalf.

If you prefer not to use myPay, you can manage allotments by submitting an allotment form. USBA has a prefilled allotment form for your convenience or a dd2558 allotment form can be found at myPay. You may mail or fax the completed form to:

Defense Finance and Accounting Service
U.S. Military Retired Pay
8899 E 56th Street
Indianapolis, IN 46249-1200
Fax: 800-469-6559

Need Assistance?
If you have questions about managing your allotment, call the DFAS Customer Service Line at 800-321-1080.

At USBA, we are committed to helping service members and their families manage their financial security with ease. If you are using an allotment to pay your USBA insurance premiums, feel free to contact our Member Services Team at 800-821-7912 or email us for assistance. You can also visit our website to learn more about what USBA has to offer for service members and their families.