The Survivor Benefit Plan (SBP) is a big decision most Service members will face come retirement. Here’s everything you need to know to help make the decision a little easier.
In this week’s MilMoney Movement Podcast, we talk with special guest, Kate Horrell to discuss what everyone needs to know about the SBP.
What is it?
The SBP is an insurance plan that will pay your surviving spouse a monthly payment, AKA an annuity, to help make up for the loss of your retirement income.
Factors in the Decision Process
- Streams of income
- Life expectancy
- Minor children
- Current savings
- Spouse employment
- Existing life insurance
Life Insurance vs. SBP
You can’t outlive the SBP, but you can outlive term life insurance. If you want to opt out of the SBP and into a term policy or the stock market, check with a financial advisor first!
Making the Decision
Take your time to make the decision, because it’s a big one. There are different rules for making changes to your SBP enrollment once the decision is made.
Who’s an Eligible Beneficiary
Most often it’s your current spouse, but under some circumstances, you can insure a former spouse. Also, minor children or someone else that you have an insurable interest in may also qualify as beneficiaries for SBP.
Remarriage and the SBP
If a spouse receiving payments from the SBP remarries before the age of 55, the SBP will stop. But if you wait until you’re 56 to remarry, then you would keep the benefits.
What’s on Lacey’s Mind
This week it’s Russell Crowe’s jock strap and the worst job in New York City.
More About Kate Horrell
Books We’re Reading
- The Automatic Millionaire
- Your Money or Your Life
- Total Money Makeover
- Getting More
- My Dear Hamilton: A Novel of Eliza Schuyler Hamilton
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