Survivor Benefit Plan, the Only Way to Protect Your Loved Ones!
When a Armed Forces retiree dies, his retirement pay also stops,this is how retirement works in the Armed Forces by default. So if you’re a Armed Forces retiree, you seriously need to consider looking into the Survivor Benefit Plan. What actually covers this Survivor Benefit Plan? Well, it’s pretty much insurance that will give your spouse a monthly check to live on, if for whatever reason, something happens to you. This includes your early death, your surviving spouse outliving the benefits, or another serious problem in today’s economically trying times, inflation.
There is also great news for veterans over the age of 70 who have made 30 years of payments or 360 payments to the Survivor Benefits plan, because as of October 1, 2008, any participants in the survivor benefits will now receive free SBP coverage. This is a great way to make sure that no hard times fall on any veterans spouses.
So you are probably thinking “Hey, this sounds great, where do I sign up?” Well, after you retire from the Armed Forces, you will automatically be enrolled in full basic survivor benefits that will cover your spouse and your children. If you want to reduce your spouse’s coverage or decline your spouse of coverage altogether, you will need the written consent your spouse’s, otherwise your spouse will remain by default on the full basic Survivor Benefit Plan. Now say you wanted the coverage for a former spouse you can do this as well, or you are able enough to cover what is known as an “insurable interest”, which could be a business partner, a partner, or someone else very close to you.
Just like any form of insurance, you must need a monthly premium to pay. The premiums are based on the “base amount” or amount that you work out. The base amount you require can be anything from full coverage all the way down to as low as $300 bucks a month. So what’s full coverage mean in terms of the Survivor Benefits Plan? Full coverage is actually based upon your full retirement pay, it means that your spouse will be benefited receiving 55 percent of your full retirement pay. If you opt for a lesser coverage, your spouse will get 55 percent of the “base amount” you selected.
There are a couple different options for coverage when it comes to survivor benefits, including spouse only, former spouse and child, child only, former spouse, or a person who has an “insurable interest”, This could be a business partner, a parent, or a close friend or family member you’d like to have covered.
This is a great way to protect your loved ones from whatever could happen in the future. We can never be sure what’s around the corner, but we can at least rest peacefully knowing your loved ones are covered if anything ever were to happen.