Question 1

What is the Survivor Benefit Plan (SBP)?

Accepted Answer

The Survivor Benefit Plan (SBP) is a Department of Defense program that provides a monthly annuity to eligible survivors of military retirees. The retiree pays a premium of 6.5% of their elected base amount, and the survivor receives 55% of that amount upon the retiree's death.

Question 2

What is SGLI (Servicemembers' Group Life Insurance)?

Accepted Answer

SGLI provides low-cost group life insurance to active-duty service members in increments of $50,000 up to a maximum of $500,000. The current premium is $3.50 per month per $50,000 of coverage. After separation, SGLI can be converted to VGLI (Veterans' Group Life Insurance) within 240 days.

Question 3

How do I decide between SBP and investing the premium?

Accepted Answer

SBP is essentially longevity insurance — it guarantees income for your survivor regardless of how long they live. Investing the premium instead could yield more if invested well, but carries market risk and the risk of outliving the investments. The break-even analysis shows how many years of survivor benefit are needed to recoup the premiums paid.

SBP & SGLI Calculator

Survivor Benefits

SBP Monthly Premium

Survivor Monthly Benefit

SBP Break-Even

SGLI Monthly Cost

SBP Cumulative Premiums vs Benefits

SBP Premium & Benefit Analysis