What is your opinion of the DoD Survivor Benefit Plan? Do you see it as an annuity or life insurance? Would you recommend this benefit?

I'm not happy about the fact that you don't get anything back if the spouse passes first. I only have four years to go so I'm not worried about it anymore.

I did it. If your frugal you can find better or cheeper. I can afford the 214 a month that i pay. My wife is supposed to get her 55%. It isnt much but i have legion 10k vfw 10k and other life ins. The wife should be able to pay off all debt upon my death, and be able to live on the 1600/mo or so of my pay. She will also get the va dic if its service connected death and that is where filing a claim for service connection on everything comes in handy. I prefer easy and SBP is easy. I will pay a little extra for the easy button.

I got my SBP briefing while clearing Finance on retirement. It was short, but pointless. I took it THEN did my researchand personally I see it as an annuity.

After I retired I got licensed as an investment advisor and I would recommend SBP over civiliancounterrpart based on costs versus benefits.

I do not know if it has changed since I retired but I viewed it as too short term with a shelf life as people live much longer now. 65 comes fast and you might as well pay term insurance which also has a shelf life. Best is mutual insurance and one should obtain it young as it goes up significantly as you age.

If you are concerned about survivor benefits for your spouse, you have three options to consider. The SBP, a Cash Value Life insurance policy, or a Revisionary Annuity. I suggest you meet with a financial advisor in your area (usually 3-6 months prior to retirement) and get illustrations for the Life insurance and the RA, and do you own compairsion to see which is the best deal for you and your family. Each has costs and benefits; the key is understanding what they are before you have to decide.

The only thing I don't like is the amount of money taken out to support the SRB program. But I had to do it to assure that my wife would get the 55% of my retired pay when I passed. Supposedly after you paid into the SRB for 30 years, the payments go away. But I've heard that pretty much never happens. Of course I have to pay $396 a month which is a killer.

To be honest the way I saw SPB is that its over priced life insurance that you have to die quickly for in order for your spouse to get paid. I could be wrong but no matter how I looked at it, it just didn't make sense to do it.

SFC Andrew Kretz
My wife and I discussed SBP and decided that it was in our best interest to opt out. Going through all the red tape to do that (both of us signing a statement and getting said statement notarized by a Navy Legalman) was a pain in the ass but worth it. In my humble opinion private life insurance is the way to go.

The only problem with the plan that I have is:
If your spouse dies before you, you will not get the money back that you paid into it
If I am wrong please correct me

SFC Andrew Kretz I would recommend that you shop around for something else. I requested one of the options, but the amount you have to pay for the options is quite large and reduces you take home retirement pay for the benefit. I believe there are other options. I refuse to mention any because I'm not an expert. When I start drawing my retirement pay at age 60 (different for retired reserves, but same Survivor Benefit Plan) I plan on opting out and taking my chance with a long and healthy life. I have choice to use a life insurance policy instead of the Survivor Benefit Plan, hoping that the other half will be drawing SS Benefits when I'm gone! It is a personal preference in the end. I just think the cost is too high during the years you are alive and trying to live off your retirement income. There are others on RP that can probably provide some very good advice.