The Military Survivor Benefits Plan (SBP) is designed to financially protect spouses and family members of deceased military retirees. When a military retiree dies they stop receiving retirement pay, often leaving family members without a reliable source of income. SBP is an insurance option that allows surviving family members to continue receiving a monthly stipend after the death of a retiree.
Am I Eligible?
Retirees can elect which individuals they want to receive payments. They can choose from options such as spouse only, spouse and child, child only, former spouse or insurable person of interest.
To be eligible as a spouse you need to be married to the retiree at the time of his/her enrollment. If you were not married at time of his/her enrollment, then you need to have been married to the retiree for at least one year prior to his/her death. Retirees may also elect a former spouse to receive monthly payments.
If there is not a surviving spouse then the full SBP payment will be given to the children of the retiree. The child only option provides a monthly payment to the child regardless of whether the deceased retiree was married at the time of enrollment. Children can receive payments until the age of 18 or 22 if they are a full time and unmarried student.
How to Apply
Spouses and children of servicemembers are automatically enrolled in SBP at the time of the servicemember’s retirement, unless elected otherwise. Retirees may not choose to reduce or decline SBP coverage without the written consent of the spouse. Retirees can elect for the coverage to go to a former spouse if no current spouse is available.
Servicemembers must pay a monthly fee in order to participate in SBP. The plan’s premium and benefits are based on whichever level the retiree selects. Base amounts range from full coverage to as little as $300 a month. If a retiree opts for full coverage their spouse will receive 55% of their retirement pay, otherwise they will receive 55% of the base amount elected.
More information can be found at the Defense Finance and Accounting Service (DFAS) website.
