Posted on May 12, 2023
Faced with the Survivor Benefit Plan Decision? 5 Things to Know
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Military families getting ready to retire after 20-plus years have a lot on their plate as they transition to civilian life. What's up next on the career front? Where will they land location-wise? How will the kids cope? With all that going on, it's easy to understand how making a sound decision as it relates to the Survivor Benefit Plan could tumble down the list of priorities. Don't let that happen, and give the SBP decision the attention it deserves.
This important program allows retirees to protect up to 55% of their retirement income for their loved ones. If you're still serving and retirement-eligible, you are fully covered by SBP at no cost. However, when you retire, you will have to decide whether you want to sign up and pay for the protection.
This important program allows retirees to protect up to 55% of their retirement income for their loved ones. If you're still serving and retirement-eligible, you are fully covered by SBP at no cost. However, when you retire, you will have to decide whether you want to sign up and pay for the protection.
Faced with the Survivor Benefit Plan Decision? 5 Things to Know
Posted from military.com
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Posted 12 mo ago
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Her is the deal...information and my opinion only!
1. If you are a healthy individual with normal life issues like I was, to me it was not cost effective. If you look at the rates as they exponentially increase you will see that it is a lot of money for a very little return. Now no one can guess about tomorrow. What we did is totake that same amount of money that we would have put into the SBP and put it into investments. YOU HAVE TO BE DISCIPLINED TO DO THIS...that way we will see some return on the investment and get positive money out of it down the road...we can get it anytime we want with penalties of course right now but we can still get to it. With the SBP it is a complete sunk cost. NOW if you have kids you can opt for them to get it up till they are out of DEERS enrollment age wise then it stops. But if you have young kids it is a good way to protect them should something happen to you until they graduate from college or get out on their own.
2. If you are retiring with a debilitating disease and know you probably won't be around long...take it...it will care for your family for the rest of their lives.
Each person has to make that decision on their own. But for me the real money option where I can see a return on investment and get something back was the way to go.
1. If you are a healthy individual with normal life issues like I was, to me it was not cost effective. If you look at the rates as they exponentially increase you will see that it is a lot of money for a very little return. Now no one can guess about tomorrow. What we did is totake that same amount of money that we would have put into the SBP and put it into investments. YOU HAVE TO BE DISCIPLINED TO DO THIS...that way we will see some return on the investment and get positive money out of it down the road...we can get it anytime we want with penalties of course right now but we can still get to it. With the SBP it is a complete sunk cost. NOW if you have kids you can opt for them to get it up till they are out of DEERS enrollment age wise then it stops. But if you have young kids it is a good way to protect them should something happen to you until they graduate from college or get out on their own.
2. If you are retiring with a debilitating disease and know you probably won't be around long...take it...it will care for your family for the rest of their lives.
Each person has to make that decision on their own. But for me the real money option where I can see a return on investment and get something back was the way to go.
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MSgt (Join to see)
Lt Col Scott Shuttleworth
There are quite a few folks with the same opinion. Ultimately you have to make the decision of what benefits your family best. I don’t believe there is an actual right or wrong answer.
There are quite a few folks with the same opinion. Ultimately you have to make the decision of what benefits your family best. I don’t believe there is an actual right or wrong answer.
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Lt Col Scott Shuttleworth
MSgt (Join to see) absolutely...that is why I caveated it with my opinion only...I talk like I know investments...nope...I pay someone to do that and they have done me a solid...I know airpower employment and mil strategy....just never got the hang of investments and to be straight up...don't want to. Cheers.
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MSgt (Join to see)
Lt Col Scott Shuttleworth - Absolutely understand, we have someone handling ours as well.
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