• Please take a moment and update your account profile. If you have an updated account profile with basic information on why you are on Air Warriors it will help other people respond to your posts. How do you update your profile you ask?

    Go here:

    Edit Account Details and Profile

Survivor Benefit Plan info

Sam I am

Average looking, not a farmer.
pilot
Reservist Point of View:

Most folks on this board are probably smarter than I am so I'll just confess that I had to get up to speed on this pretty quick when my retirement paper work showed up. The reason I had to spin up was that once you get transfered to the Retired Reserves you only have 90 days to decline the option or your automatically enrolled. Anyway, you can find all sorts of information on the web about it, but the down and dirty is that the premium is deducted from your monthly retirement pay and in return your spouse will receive benefits after you die, or if you die before you receive retired pay (age 60) they'll still get the benefits (pay and medical coverage). HOwever, they'll only receive 50% of the monthly $ amount of what you were receiving or would have received if your death precedes theirs.

Other stuff: when you accept or decline, both you and your designated survivor have to sign in front of a witness and have that document notarized.

There are provisions for if you spouse dies before you receive your retirement pay or you're no longer married to that spouse. You can get smart at the DFAS website:

https://www.dfas.mil/retiredmilitary/provide/sbp/
 

exNavyOffRec

Well-Known Member
Reservist Point of View:

Most folks on this board are probably smarter than I am so I'll just confess that I had to get up to speed on this pretty quick when my retirement paper work showed up. The reason I had to spin up was that once you get transfered to the Retired Reserves you only have 90 days to decline the option or your automatically enrolled. Anyway, you can find all sorts of information on the web about it, but the down and dirty is that the premium is deducted from your monthly retirement pay and in return your spouse will receive benefits after you die, or if you die before you receive retired pay (age 60) they'll still get the benefits (pay and medical coverage). HOwever, they'll only receive 50% of the monthly $ amount of what you were receiving or would have received if your death precedes theirs.

Other stuff: when you accept or decline, both you and your designated survivor have to sign in front of a witness and have that document notarized.

There are provisions for if you spouse dies before you receive your retirement pay or you're no longer married to that spouse. You can get smart at the DFAS website:

https://www.dfas.mil/retiredmilitary/provide/sbp/
I would recommend checking out life insurance through other insurance companies, essentially the insurance for SBP is like term life insurance, so if you outlive your spouse then you have paid in money for nothing.

I did the math myself, talked to a few other companies, and in the end went with other life insurance. If you have health issues then SBP is probably the way to go, just shop around that way you have no doubt you have made the right decision either way.
 

Sam I am

Average looking, not a farmer.
pilot
I thought of the insurance slant as well elected to go with SBP. I'm pretty sure money isn't going to be a problem as long as the health care piece is there. Meds are very expensive and can cause pretty severe cash bleed on a retirement plan. As a side note, my father had adult onset diabetes...he wasn't over weight (far from it...in fact he went skinny as rail before he was diagnosed) and had no other health issues. His insulin cast a small fortune. I mean, f'ing ridiculous $$. In the end, a car accident got him, not the diabetes. All that to say, it will come down to your own situation...each person's is unique.

Last note...some spouses get pretty worked up over this stuff. My uncle retired from active duty and his wife wasn't having any life insurance conversations...she wanted the pension and the benies.
 

phrogdriver

More humble than you would understand
pilot
Super Moderator
Something to think about. If it’s taking care of the kids that’s the issue, SBP to cover your pension until they’re 18 is only a couple bucks a month.

Woman has legs. She can get a job after they’re out.
 

CAVU

just livin' the dream...
None
On the subject of SBP, I would encourage folks to review this: https://www.navymutual.org/wp-content/uploads/downloadable-forms/tools/sbp-presentation-april-2020.pdf NMAA is still authorized by SECNAV to make these presentations on base. MOAA has a decent write up too http://www.ohiomoaa.org/Documents/pubs/SBPME_AD_Web.pdf

There are big differences between SBP and SSBP. SSBP is not worth it, except in very rare circumstances.

Big takeaways for me were that SBP is a subsidized benefit (USG covers 40% and you cover the 60% through premiums paid), it is adjusted for inflation, is a continuous stream and only congress can change the payout. Life insurance is still an important consideration/component of personal financial/estate planning.

Some do their analysis and go with life insurance. Life insurance companies can and have gone to their state's insurance regulator and cried and gotten the premium payer to pay more or get reduced payout, benefits are not adjusted for inflation and if it is term, it will never reach paid up status.

Very important decisions about many things as you approach retirement.

Soap box: " AND make damn sure you take a realistic look at your health and all that has happened to you while on active duty. AND send in your https://www.va.gov/disability/how-to-file-claim/#:~:text=By mail,VA Form 21-526EZ). Write down EVERYTHING and point to it in your medical record that will go with it. EVERYTHING. AND make sure your DD214 has all of your campaign and service ribbons and dates (that is a prime way for VA to determine benefits related to specific areas of operations you were in). It is less about the money and more about helping your loved ones help you later on at VA when things are not going well. I have true stories about warriors who did not file and it did not end well in any regard. end of soap box.
 
Top