Survivor Benefit Plan (SBP) Explained

SBP lets a military retiree provide a continuing, inflation-adjusted monthly annuity to a survivor after their death. It pays up to 55% of retired pay, depending on whether you elect full or reduced coverage.

Premiums are deducted from gross retired pay, which means they are taken before tax and do not count as income to you.

The thing that makes this page matter is the timing. The election is made when you retire — or at 20-year qualification — and declining or reducing coverage at retirement is irrevocable, whatever your reasoning at the time.

After retirement, elections cannot generally be canceled or changed. The exceptions are specific: a change in marital status, or the loss of a beneficiary.

So this is a decision taken once, under time pressure, at a moment when a great many other decisions are also being taken — and it is one of the few that cannot be revisited. That asymmetry is the argument for thinking about it well before your retirement paperwork lands.

Because it is partly government-funded, the premium is generally well below comparable commercial cover — which is the case for taking it seriously rather than dismissing it as an expense.

Who is eligible?

Military retirees with eligible beneficiaries — typically a spouse, former spouse, children, or in some circumstances a person with an insurable interest.

Spousal consent rules apply. Declining or reducing coverage where you have a spouse generally requires their written concurrence, which exists precisely because the decision is irrevocable and affects them more than you.

The interaction with DIC is worth understanding if the death is service-related, and the SBP-DIC offset has been phased out — so the position is different from what older guidance describes. DFAS is the authority on how the two interact in your case.

Premium calculation depends on your base amount and beneficiary category, so your own figure comes from DFAS rather than a general percentage.

How do I apply?

  • Decide before your retirement paperwork, not during it: This is the election you cannot revisit, taken at the busiest possible moment.
  • Get your actual premium from DFAS: It depends on your base amount and beneficiary category, not a single headline percentage.
  • Understand your spouse's consent right: Declining or reducing coverage with a spouse generally needs their written concurrence.
  • Compare it against commercial cover honestly: It is partly government-funded and inflation-adjusted, which commercial term cover is not.
  • Check the DIC interaction if death could be service-related: The SBP-DIC offset has been phased out, so older guidance is misleading here.
  • Revisit on a marital-status change: That is one of the few circumstances in which an election can be changed after retirement.

Common questions

How much does SBP pay?

Up to 55% of retired pay as an inflation-adjusted monthly annuity, depending on whether you elect full or reduced coverage.

Can you change your SBP election after retiring?

Generally no. Declining or reducing coverage at retirement is irrevocable, and post-retirement changes are limited to specific circumstances such as a change in marital status or loss of a beneficiary.

How are SBP premiums paid?

Deducted from gross retired pay, so they come out before tax and do not count as income to you.

Does your spouse have a say?

Yes. Declining or reducing coverage where you have a spouse generally requires their written concurrence.

Is SBP good value against commercial insurance?

It is partly government-funded and inflation-adjusted, so the premium is generally well below comparable commercial cover — but get your own figure from DFAS to compare properly.

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