Posted on Jan 6, 2023
Retirees to Get a Second Chance to Enroll In or Opt Out of the Survivor Benefit Plan
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Posted 2 y ago
Responses: 2
I suspect there are many. I know SBP was essentially badmouthed when I received my retirement briefings.
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Here is the thing for Surv Ben Plan for me:
1.) Unless you leave the service with a debilatating disease that willprobabl claim your life, it really isn't worth it. If you die, your spouse willget it unless they remarry. If they remarry they will lose the benefit.
2.) It is a sunk cost that increases exponentially over the years. If you live to a very old age you nor your spouse willreceive any of that back. Or at a very minimum you will get a few years back out of it.
3.) I took the same amount of money that I owuld have put into the plan and invested it in life insurance that she will get or my daughter will get which isn't allowed inthe SBP, and other investments for retirement. That way I at least get a return on the money versus a gamble on my death for my wife. But you have to be disciplined to do that and not use that money for something else.
Just my opinions.
1.) Unless you leave the service with a debilatating disease that willprobabl claim your life, it really isn't worth it. If you die, your spouse willget it unless they remarry. If they remarry they will lose the benefit.
2.) It is a sunk cost that increases exponentially over the years. If you live to a very old age you nor your spouse willreceive any of that back. Or at a very minimum you will get a few years back out of it.
3.) I took the same amount of money that I owuld have put into the plan and invested it in life insurance that she will get or my daughter will get which isn't allowed inthe SBP, and other investments for retirement. That way I at least get a return on the money versus a gamble on my death for my wife. But you have to be disciplined to do that and not use that money for something else.
Just my opinions.
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