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OT: [rant]BB&T (now Truist) Bank (and others)

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  • #16
    Yep. I've been a USAA member for 54 years, since I was commissioned in the AF (back then only officers were eligible.) They're my sole source for all insurance. But I've never used any of the other USAA financial, or car buying services.
    In addition to very good rates, substantial annual premium refunds, and a senior refund check each year, there's a sizeable member "subscriber savings account" (SSA) that accrues additional money annually. The SSA, however, can only be withdrawn if my membership ends, i.e. I croak (estate gets it) or I quit. Last time I noticed it was some 6 or $7K. I've never fully understood how that SSA is calculated, other than being dependent on the amount of each member's individual contribution to the association as a whole, along with the year-end profitability.
    Lynn (Huntsville, AL)

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    • #17
      Lynnl, USAA's member account is how they, as an association which is owned by the members (that's you and I and millions of others) must have an emergency or fall back source of funds if they get hit with a number of insurance claims that are not anticipated by the insurance rates that they charge. All insurance companies have this, but most own it themselves and if it is not used then it goes to the stock owners or executives of the company. Since we and all the other members are the owners of USAA, we also actually own that emergency fund. There are ways that they calculate just how much they must, by law I believe, have in that fund and I suspect they are a bit conservative in that calculation. But at the end of each year they almost always have a surplus in that fund. So it goes back to the owners of USAA and that is all the members. This, in a way, is how they deal with any excess "profits" that the association generates. We get it.

      This is part of how they can have lower rates and not automatically raise your rates if you have an accident or two.

      I can not remember a year when I did not get a check at the end of the year, usually in December. Now that I am a senior, I get a second check a month or two later as a senior bonus or allotment. It is usually smaller than the first check.

      And no, we can not just withdraw that money because they need it to stay legal. As for the remaining amount when I die, I guess it will pay for a nice funeral. Or if I live long enough, that second check may reduce my member savings to little or nothing. I don't really know and don't care.

      BTW, for the benefit of others reading this, the member account has nothing to do with any bank accounts that you open with the USAA bank. Those accounts operate just like any other bank account. You can withdraw from them at any time unless there is a stated period like some CDs.



      Originally posted by lynnl View Post
      Yep. I've been a USAA member for 54 years, since I was commissioned in the AF (back then only officers were eligible.) They're my sole source for all insurance. But I've never used any of the other USAA financial, or car buying services.
      In addition to very good rates, substantial annual premium refunds, and a senior refund check each year, there's a sizeable member "subscriber savings account" (SSA) that accrues additional money annually. The SSA, however, can only be withdrawn if my membership ends, i.e. I croak (estate gets it) or I quit. Last time I noticed it was some 6 or $7K. I've never fully understood how that SSA is calculated, other than being dependent on the amount of each member's individual contribution to the association as a whole, along with the year-end profitability.
      Paul A.
      SE Texas

      And if you look REAL close at an analog signal,
      You will find that it has discrete steps.

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