Recently, I’ve heard questions about what happens to a USAA Subscriber’s Account when the account holder passes away. These accounts hold part of USAA’s capital and allow the association to share earnings with members, some of whom may qualify for senior bonus distributions.

Upon the death of my husband in 2021, USAA asked whether I would like to take the money out of the account and start the account over again as a new owner, or to take some money out in small withdrawals.

USAA bylaws state that upon the death of the account holder:

“[P]ayment will be made to the widow(er) or, if there is no surviving spouse, to the estate. However, if a widow(er) entitled to such payment chooses to continue membership in his or her name, at the option of the widow(er), such amount may be paid to the widow(er) or retained in the subscriber's account; any election to receive such payment must be made in conjunction with the decision to continue membership in such widow(er)'s name.”

[RELATED: More Financial Programs From USAA and Other MOAA Partners]

Either option may make sense as part of your financial plans moving forward. My advice: Contact USAA to learn more about your options.

More resources regarding Subscriber’s Account distribution are available at the USAA website.