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Top Posts & Pages
- Military Pension Tax Rates By State
- Terminal Leave: Take it or Sell it Back?
- Term Life Insurance Vs. Survivor Benefit Plan (SBP)—A Side By Side Comparison
- Why You Should Strongly Consider Not Participating in the Survivor Benefit Plan
- 3 Tax Considerations When Selling Your Rental Property In The Military
- Transitional Compensation for Abused Dependents
- FAQ: What Happens to My Life Insurance When I Leave the Military?
- SGLI After The Military: What Happens?
- SGLI Conversion-Why VGLI Might Be Better Than Whole Life Insurance
- 5 Military Personal Finance Blogs You Should Follow
Category Archives: Survivor Benefit Plan
Everyone planning a military retirement has a very important decision: “Should I take the Survivor Benefit Plan or not?” As I’ve said previously, this is a very personal decision, and should not be taken lightly. While the best decision might … Continue reading
Welcome to Day Sixteen of the 30-Day Financial Transition Challenge. The next two articles will focus on income protection, both in the form of the Survivor Benefit Plan (for retirees), and life insurance. Today’s article focuses on the Survivor Benefit … Continue reading
This blog post has one purpose: to point you to every website with the Survivor Benefit Plan resources. It might be very long, with a lot of links, but I will do my best to organize this content in a … Continue reading
You might wonder why I wrote an article that seemed to advocate SBP, then followed it up with an article that seemed like SBP-bashing. I did so for two reasons. First, both articles seek to provoke critical thinking…I think I soundly met that objective. Second, putting those two articles side by side shows my true focus…when you’re looking at your decision to retire from the military, you need to make sure you address SBP properly. After all, if you make the wrong decision, you’re stuck with it. With that said, I got hit up on both sides of the debate. Continue reading
My first book, Military In Transition’s Guide to the Survivor Benefit Plan, is available for pre-order on and will be available for download on June 30. If you’d like to learn more, please send me an email or join Military … Continue reading
When a military retiree passes away, their pension automatically stops. Without a plan to replace this lost income, the family’s quality of life could definitely be at risk. In 1972, Congress established the Survivor Benefit Plan (SBP) and its reserve counterpart under Title 10, specifically to help military retirees and their families protect themselves from the risk of financial loss.
SBP and its reserve component counterpart, RC-SBP, are annuity plans designed to replace a military pension once a military retiree passes. Under SBP, you pay a certain percentage of your retired pay (currently capped at 6.5%) in exchange for the right for your dependents to receive 55 percent of your retirement pay. For example, if you have $1,000 per month in retired pay, you’d pay $65 per month for SBP. When you die, your spouse would receive $550 per month. After 360 months and you reach the age of 70, you are considered ‘paid up’ and there is no additional cost to you.
Here are four unpublished reasons you should strongly consider SBP: Continue reading