Asking The Right Questions. They were mailed annually or whenever there was a change in pay. I can not emphasize enough how vitally important it is to thoroughly understand the Survivor Benefit Plan if a member of your family will remain in the military until retirement. My 83 yr.old mother sent in form 2656-1 and was just denied and we have 30 days to appeal. DFAS would not give me any information even though I mailed in the forms to claim SBP and they mailed back forms for direct deposit and mailed them back but nothing has happened since and that has been months. She was not aware of the divorce nor the fact he cancelled the SBP for her. Who can I contact to try and help Dad. Do you have any insight on either of these issues? It provides 24/7 access to her annuitant statement and early access to her 1099 tax documents. I believe your Mom received some of the premiums they paid into SBP because she is receiving DIC. Assuming the eligible beneficiaries are still eligible, the only window to terminate SBP coverage is between the 25th and 36th payment. I think they are extremely understaffed these days. That marriage to another service member (NG or Reserve, not sure) lastet for about 7 years. Yes. I dont guarantee that all the information in the packet is currently 100% accurate, but I believe everything in this part is correct. The surviving. I am also confused about your retirement pay and subsequent SBP premium calculations. My wife was recently diagnosed with stage 4 cancer menastisze cancer which began in the Breast and has not gotten to her Liver. Sending you hugs. There is no refund of premiums if you make this choice. Robert, I am sorry to hear about the death of your beneficiary. If she passes before I do would I be entitled to the money I put into the SBP? The death of a spouse is an emotional and trying time. No one changed the rules mid-way through the game. Ill have to check and see if anyone knows how taxes are withheld on the refund if it is withheld like a bonus or as directed on the W-4. First is the ability of the beneficiary to manage the lump sum while dealing with grief. Survivor Benefit Plan, or SBP: Surviving spouses or children of service members who die in the line of active duty may be entitled to SBP payments. My children will no longer be eligible to receive SBP if I die. I wouldnt even have thought it possible to request a refund. Ive read lots of things that va cuts check and then has to pay it back because retirement wasnt notified. I am now divorced and my ex-wife is remarried. For many people, it lasts between 6 and 12 months, but not everybody experiences it, and sometimes it goes on for longer. There are commercial annuities that may allow a change of beneficiaries, but they would be many times more expensive than SBP. I recently was awarded DIC and I am now Offset. Accordingly, I am strongly considering a $1M term policy, primarily to handle the mortgage if/when I pass before its paid off. Upon Loss of Spouse SBP spouse coverage is not terminated when a spouse loses eligibility (spouse dies or member and spouse divorce). Great question! However, your analysis fails to include several important considerations and one glaring factual error. 2. Im afraid this is all way beyond my level of expertise, but Im going to throw out some questions to point us both in the right direction: 1. The surviving beneficiary will receive 55% of the covered amount each month. Jerry, yes, you should automatically stop paying premiums when your child turns 18, if the child is not in college. Ive printed up material from the SBP FAQs that say that I cant lost it. We were told at the 5 year mark to call and let them know to stop taking payments out because it had been 5 years. section 3702 regarding SBP payment of any claim not received within 6 years from the date it accrues basically a claim for Arrears of Pay. Or would SHE be liable to pay back the money? He did not die first, and so the policy does not make a payment. My husband was medically retired 5 years ago. Im 50% from the Marine Corps. I hope you have a better understanding of SBP now. The withholding tax rate is 30 percent of the payable annuity. You can learn more about this program at https://www.va.gov/opa/persona/dependent_survivor.asp. The amount of SBP is offset, or reduced, by the amount of DIC received by the beneficiary. Hi Rich! The base monthly amount is $1,437.66 for all surviving spouses. SBP (a portion of your retirement) will be paid with no questions asked to your spouse at least till he/she deceases. 2-Spouse & Child(ren): Under this election, the At this point we are still waiting to hear back from the Army on the extension. SBP benefits are taxable to the recipient, whereas life insurance proceeds are generally non-taxable. https://www.dfas.mil/retiredmilitary/provide/sbp/change.html. I usually hate that advice, but I dont know what other recourse you might have in this situation. SPOUSE ONLY: This is the spouse you are married to when you die. Be aware that there are many regulations about SBP, including former spouse coverage, disabled child coverage, and insurable interest coverage. The two biggest features of this annuity are that it is guaranteed for the surviving spouses lifetime (with certain remarriage rules) and the amount is adjusted each year based on inflation, so the net purchasing power remains the same. They havent been paid out of your retirement pay or your disability compensation? Provided your divorce decree does not require you to provide SBP coverage, you may cancel your coverage. I am a retired Marine, approaching 70 yrs in 2019. In this case, the full amount of SBP premiums will be refunded to his survivor, but they will also be eligible for a $310 Special Survivor Indemnity Allowance (SSIA). He received benefits at age 60 he is now 73. SBP spouse benefits last for life for un-remarried spouses. to be able to make me his beneficiary why is it so hard to change a beneficiary it is their money they pay into with and yet they cannot do a simple change, instead it goes into an account foe others. The more questions you ask, the more everyone learns. Second, survivors who are affected by the SBP-DIC offset are eligible for a $310 month allowance called the Special Survivors Indemnity Allowance (SSIA). 5. Depending on your husbands medical situation, you may be eligible for Dependency and Indemnity Compensation (DIC) if he pre-deceases you. This was just a terrible wrong.". SBP is not the right tool for every situation. That is true as long as you remain married. Coverage after retirement requires a cost-benefit analysis, decision, and the signing of the appropriate paperwork. I did see that you anticipate a second career after the military. Thank You for your input. Will SBP payments be subtracted from her monthly payment until it is paid in full? And this all happened a long time ago. Kate I hope that eases your mind. If the spouse remarries before the age of 55, they forfeit their SBP monthly payments until and unless that marriage ends. FERS - To elect a full 50% survivor annuity for your spouse your annuity will be decreased by 10%. The next question is, what in your plan provides for income for your survivors? One of the biggest misconceptions out there may be the belief that little needs to be done and the vast majority of the work . For more information about the Survivor Benefit Plan - or other veterans benefits - contact the Navy Mutual education team at education@navymutual.org or by calling 888-298-4442. Faith, let me see if I am understanding your question. If you are asking about something else, please let me know. UnbeknownstUnknown to him and a number of other retirees, DFAS had changed its interpretation of the law in May2013and refused to allow him to transfer the benefit. Now check your email to confirm your subscription. I am confused and until today I realized that my pension pays into the SBP. Good evening Kate, I am a retiree and I have been making monthly SBP premium payments for Spouse/Child coverage since my retirement. This site does contain advertising and affiliate links. After that one year period, you will be unable to reinstate SBP coverage. The annuity for the surviving spouse can be reinstated if the remarriage ends. Can you help me understand how not making a claim against survivor benefits feels like youve lost money, but a comparable situation (like auto insurance) doesnt feel that way? Premiums paid vs SBP received? There are multiple groups of people who can be covered by SBP, but I will group them into three general groups to make it a little more simple. It is a very simple process and folks do it all the time when they receive a lump sum of taxable income. "When I got the news, I was quite delighted. . Spouse 2. (Havent remarried) please help me, am so confuse and lost!! Hi, I cannot seem to get a clear answer from anyone at DFAS on anything related to my husbands pension (SBP) since he died. This information remains here for those transition years and for reference. The SBP can be assigned to a former spouse as part of divorce proceedings. If you are looking at term life insurance as a source of income for survivors, be sure that your family understands what they would need to do to make that lump sum of money grow enough to beat inflation and last for their lifetime(s.) A simple (but rough) rule of thumb is the 4% rule, which states that you should be reasonably able to withdraw 4% of your principle each year and the growth will ensure that you will never run out of principle. The payment for that SBP (policy) is roughly $130/mon. http://www.moaa.org/uploadedFiles/MOAA_Main/Main_Menu/Publications/Books_and_Guides_-_MOAA_Info_Exchange%C2%AE/Former_Spouse_Benefits/formerspouse_final.pdf. While Im not overly optimistic, your best bet would be to contact DFAS directly. Great question! The SBP-Social Security offset was eliminated in the 2005 National Defense Authorization Act. SBP premiums are only refunded if the survivor is subject to the SBP-DIC offset. She can apply to find out if it happened. SBP is like insurance there is no refund of premiums. I had forgotten to consider the reciprocal tax treaty. It is very helpful. 3. A non-family member may include a business partner or joint owner of property. Have I a leg to stand on at all? Im glad I was able to answer your question. Every retiring member is automatically enrolled in SBP for full coverage unless the spouse consents in writing to reduced coverage or no coverage. Arnold, SBP coverage is effective immediately the first day after retirement. The most frequently selected beneficiary is the spouse or former spouse, and the premiums for these two categories are the same. ***. I have put hours into researching for an answer to this question and finally came across your site. Hi Kate, How does 100% disability withdrawal work? This is another way that SBP ensures that benefits are not diminished by inflation. The initial annuity paid to a surviving spouse is equal to 55 percent of the retired pay to which the member would have been entitled based upon years of active service if retired on the date of death . I have been looking around some websites like DFAS, Military.com, DODWarrior to name a few and have found that upon retirement the spouse has to consent in writing to reduce coverage or elect no coverage, I have not found any paper work showing that my mother made this election nor have I found a SBP election certificate (DD-1883). It seems the premium refund can really complicate our taxes. Note: The RCSBP annuity is paid until the spouse dies, unless the surviving spouse remarries before age of 55. SBP coverage means that the non-military spouse, if she survives the retiree, gets 55% of the selected base amount of the pension for the rest of her life. (And honestly, $20,000? I am a guardian for a adult disabled child,his deceased dad was a 30 year lifer in the army, after his death he did have survival insurance,but I filed for dic and pension from VA,denied,did I filed wrong insurance?and if so what can I do? But thats just me. If so, where do we find the appropriate form? Can you explain the best strategy to make sure enough taxes are taken from what she receives or is this a situation where she must file estimated taxes on the earnings? Former Spouse-and-Child (ren) 6. Kate, I have been paying into the SBP for 11 years now. Whether you get it with spouse coverage or alone, the cost is insignificantly small. I stay with her every day and have another lady at night. I have been paying into SBP for 25 years and 6 months. Every dollar of standard . Are you asking if the premiums must continue to be paid if the insured dies? Will I get SBP? I am the kind of person who wants to understand and to have the answers when my husband asks me what these things mean. Is there someplace I can download something or a place to ask for a copy of the award letters that I could receive in a timely way? Retired since 1988. Thats an awful way to live but so is actually running out of money. I understand that you mean well, but trying to convince people to sign up for SBP is wrong. The RCSBP has five beneficiary options. If you can provide me with more information, I can try to help with answers. I most definitely want her to have that protection, particularly given my life expectancy. I assume my payments into the SBP will stop. So, I guess DFAS denied the former spouses claim and then the Appeal Board overturned it. Hi Phil! Hi Kate, However, its important to note that not all retiree deaths fit the criteria to receive DIC. My husband retired two years ago and I thought I was on top of understanding the systems the military has in place but just transitioning to Tricare retirement in an area that makes it difficult to utilize your benefits has been complex and asking a million questions when there isnt really any one person to turn to can make you want to throw your hands up. This change affects surviving spouses who are, or who will become in the future, eligible for both Survivor Benefit Plan (SBP) payments and Dependency and Indemnity Compensation (DIC) payments, and who were previously subject to a full or partial SBP-DIC offset. Every retiring service member with an eligible spouse or child is automatically enrolled in the Survivor Benefit Plan at the maximum level. My question is regarding the child only SBP. Gabriel, there are a couple of things going on here, but regardless he wont have wasted his money paying for SBP. Sorry, I have not taken the time to read all the questions and responses. Is that a correct assumption? When I elected to buy into the SBP I did it so my wife would continue receiving a portion of my retirement after Im gone. However, there is no return of premiums if you withdraw from the plan vs. return of premiums if you continue with SBP and your survivors are impacted by the offset. 6. What would happen if they do not pay the 360 months? If you elected the full SBP, the benefit is 55% of your retirement pay. Thanks. Can we increase the deductible? However, if your spouse remarries after age 55, SBP will continue for the rest of his or her life. Im looking up some information and it might take a little time. I would assume over 24 years since my husbands death, I have received more SBP payments than SBP premiums we paid from 1982-1994 (retirement to death). Therefore, thelack of apost-tax premium option isnt negatively affecting many people. Im 61 years old and I plan to retire from active duty in December 2018. Third, if your death is not attributable to your military service, your survivors are not eligible for DIC until you have been 100% P&T for 5 years (if they are considering that you were 100% at the time of discharge) or 10 years if they dont consider the 100% determination to have begun at the time of discharge. There is no minimum time or number of payments required for benefits to be paid. This program is called the Survivor Benefit Plan (SBP). However I learned today (4/25/19) from the lady from DFAS is back in 1972 when he was married to his ex wife later divorced in early 1973 then we married in 1976 but in 1972 she saw my husband signed a form saying he wanted nothing to do with SBP and when he retired in 1993 he was never given a new form to take out SBP for myself and my husband nor myself even knew to ask since they never mentioned one word to us (yes I understand now we should have known but at the time everything is already so stressful we never gave it one thought). Can you please tell me who the insurance company is for SBP? Social Security will pay a one-time death benefit of $255 to your spouse as of 2023 if they have been living in the same house as you. Term insurance is an excellent product for that purpose. I have considered going to the nearest USAF base personnel offices and speak with a SBP knowledgeable officer or NCO. Thanks for your reply, Monica. Im wondering if I can make a legitimate waiver request, and the best way to go about stating my case, to DFAS regarding The Barring Act, 31 U.S.C. How do I prove he paid into SBP and get proof of who the beneficiary is? The $310 SSIA offset is given when DIC is more than what she would have received for SBP monthly. 3. The portion of your late spouse's Social Security that you can collect rises from 71.5 percent if you file at 60 (or during your 50s if you are disabled) to 100 percent at your full retirement age. I read your post with interest and have a question for you. endobj Author Jim Cramp is a retired active duty colonel and the founder and principal attorney at the Cramp Law Firm . I was medically retired at 16 years this past June and I elected SBP at time of retirement. This is one of the biggest shams of SBP that no one wants to admit. Helping Military & Federal Civil Service Spouses Get Paid. DFAS informs me that my father should have notified them 6 months from the divorce date to change the contract to ex-spouse so the contract would stay valid. My husband did not voluntarily make a former spouse election at the time of retirement. If I retire (from the ANG) at age 49 and dont begin drawing my (ANG) retired pay until age 60, exactly when do I begin paying premiums to the SBP whether I choose immediate coverage or deferred coverage? I have paperwork showing he paid for Plan C into SBP and copy of retirement pay statement dated 12/04/97. We were surprised that taxes withheld were very low; enough to require her to pay a penalty for underpayment. I retired (medically) in 2013. How long did yours take to receive? Thank you, Shellie. I tend to look at this coverage as income insurance, not life insurance. I m not planning on remarrying due to my poor health. Odom said the fact that DFAS made no public notice of the policy change rankled retirees, advocacy groups and some lawmakers. Certain time limits and other conditions apply. From the 25th to 36th month of coverage, you can terminate your SBP election. I am sure the person who sold him on the VGLI didnt explain how the premium would go up dramatically as he got older. I understand that I must contact DFAS within one year of our marriage. It took me the surviving widow 15 years . 2. The firm provides a spectrum of family law-related services to clients in the greater San Antonio region, across the United States and throughout the world. You may find more helpful information in the SBP portion of this packet. There is no refund of premiums. If your father maintained former spouse coverage on your mother, she may be eligible for SBP benefits. Make your plans with the rules as they currently exist, and deal with changes if they occur. The 10% they withheld is that the amount you instructed them (on your W-4 form) to withhold, or did they select to withhold that amount on their own? 2. Odom said that MOAA had brought the matter to the attention of defense officialsand staff members of House and Senate Aarmed Sservices Ccommittees. If anyone has experience with this situation, please share as I am trying to determine the best option. There is no requirement to make a minimum number of payments or have coverage for a certain amount of time. I may receive compensation through affiliate or advertising relationships from products mentioned on this site. I have not contacted them for an appeal because I feel that there is no way to prove that my father didnt know to contact regarding the situation. I cannot find anything online in MyPay to download and print. My husband passed away back in December2017 and learned he did not elect to take out SBP when he retired in 1993. He was married to another lady when he originally elected to take SBP, although he says he felt forced to do it by his officers at that time without proper explanation of what it was all about. Retired in 1978 and died in 2021. Thanks! If you could find a comparable insurance policy or annuity, I guarantee you that it would cost many times the cost of SBP. Shouldnt I receive some kind of refund for the 360 payments he made to DFAS? My husband and I would have made another choice if we knew about the SBP/Offset ruling. Im not sure he knew to do that. Your goal is to fill your bucket with a variety of sources of income until it is full. section 3702 regarding SBP payment of any claim not received within 6 years from the date it accrues basically a claim for Arrears of Pay. One month later I put my mom in for dic and in January 2018 it was approved. I dont blame them though because even though its their job, I know they have a lot on their plate and tend to where many hats. JC, I apologize for the delay in responding. If so with the change in dependent status can I still claim him on my return? You have had a service-connected disability rated by the VA as totally disabling for 10 or more continuous years. 4 0 obj Hi Kate Now after doing so, I was told that this is a withdrawal time and that we basically would just lose everything we paid up to this point. Are you saying that you waive all of your military pay to receive disability compensation, which is non-taxable? since he only receive $150 dollars a month for retirement. It will make a tremendous difference to them," he said. Is that because of you were awarded Dependency and Indemnity Compensation? I read that my wifes SBP will now be taxed at the estate tax rate of 37% Is this true? This is a huge problem and its getting worse. His mother (my niece) died a couple years ago. Thank you. 2. In fact, Im pretty thankful that I havent been involved in a situation that required a claim. I look forward to your comments and questions. My husband hasnt made an SBP payment since he was declared 100% P&T disabled in 2009. The original commenter purchased SBP in order to provide income to a beneficiary if he died first. A surviving spouse or child may receive a special lump-sum death payment of $255 if they meet certain requirements. beneficiary loses eligibility (spouse dies, or member and spouse divorce). The federal government does not make money off the SBP program. However, I am not a lawyer, nor do I know of every unusual interpretation of the law. This is a great website. Former Spouse 5. For those who want to purchase a product that permits a change of beneficiaries, SBP is not the right product. This process requires an application and proof of medical disability that prevents them from being self-sufficient. Heres hoping you can clearify this (possibly) unusual situation for me. It is wonderful. Thank you for helping us military widows to find answers. She went to the site and reapplied. Cynthia I am doing some research but it is slow. What is DFAS currently saying about the situation? Hes is either 90% or 100% VA rated disability and his Medical retirement (8years )is rated at 70%. Kate My dad died in 2017 at the age of 80. If you elect spouse/former spouse and child(ren) as beneficiaries, the spouse/former spouse is the primary beneficiary and the children are secondary beneficiaries. We received notice that the premium cost would have to be refunded. If that situation were to occur, she could make an estimate tax payment to the IRS. My youngest attends college full time and will turn 22 in 2 months(december). If the survivor is eligible for DIC, the amount of their SBP will be reduced by the amount of DIC that they receive. In the meantime, you can make arrangements for your SBP premiums to be made from your VA pay using Form 2891 or you can make payments directly to the VA using the address listed on this webpage. Only retirees pay into the Survivor . It is very important that retiring service members and their spouses understand all the aspects of SBP so that they can make the right election at the time of retirement. With the passage of the new law, he said, "a terrible wrong has now been corrected. Thank you for your reply. ^ -~ ^b;vVoZ^ZAEve` oV,$Ll9H>GO{,Hw$L(Apb79mHggoXvFU{ `+8.+vNiGKd5` Gq&`c(;xf1RRYm2(QH(xxu X&qaofcYx>\?^GTnu+-v5&C3pm: |dq}ID~ I^:xT. We were married before he retired and he elected current spouse coverage. At the bottom of his statement it says spouse cost $274.00. Making a chunk of money last a lifetime requires careful investing, balancing the need for growth with the need to protect the principal. It is an annuity, which means that it is a stream of payments, with premium payments made from the retired pay, and a large portion (between 40-50%) of the cost is paid by the government. The retired SMs name, social security number, and date of the former spouses death. If spouse A dies and doesn't use their exemption, it doesn't roll over to the surviving spouse. 10+ Places To Learn About The Survivor Benefit Plan. We have since been married for 28 years. I calculate that an O-5 retiring at 31 years of service will receive approximately $5574 in retirement pay if retiring under the High 3 system. Will I get it back in a lump sum? (And that example includes 2 years with 0% COLA.) If married, the spouse is required to agree with the service member's SBP choice to elect anything less than full SBP. Can you give me any advice on what to do? Thanks so much. I received court ordered 1/2 of retirement military pay from my former spouse. Yes, they are both food, but otherwise they not similar. Because this is such a valuable benefit, it's important to be sure you understand how the SBP works, especially if there is divorce. For many military families, full SBP coverage is the right choice. SBP is for when the survivor lives a lot longer than you planned.. Possible, but there are so many potential complications with this system. This wild assumption sounds like advice from a 4 year old. It may seem like youll never make it to 360 payments, but I actually know people who are paid up. My husband never discussed pension amount or anything of the sort when he retired. Will they allow me to break down that deficit to catch up or will they take it all at once. It would stop if/when your spouse dies. Why do they impact each other when they are 2 different pools of money? Its all about when something happens and if youre prepared. I have no idea why. First though they deduct taxes and then deduct any monthly SBP payments paid out while waiting for DIC to start. Former spouse coverage must be elected to retain coverage. If not the military is there an actual insurance company that runs the annuity? Even though this post is over 2,000 words long, I still havent covered all the nuances of special situations. Full SBP coverage is effective immediately upon retirement. Was DFAS notified of your divorce when it occurred? Our situation is similar to the gentleman above, Phil, except that my husband still gets bills from DFAS stating now that he owes $8,671.07. Question 4. The former spouse of a member of the military does not forfeit her portion of military retirement pay should he remarry - instead, the Uniformed Services Former Spouse Protection Act requires that, if she begins to receive benefits under the Survivor Benefit Plan upon her former spouse's death, she will lose those benefits if she remarries before reaching his 55th birthday. I understand payback for dollar for dollar. How do I continue to provide SBP for my spouse, or does she lose that benefit despite these years of payments. The annuity for the surviving spouse can be reinstated if the remarriage ends. 2.5% of the first $635 ($15.88), plus 10% of the remaining covered amount. When I buy food, it isnt a loss, its trading money for a goods or service. Is there anything she can do? Jessica, this is incorrect. How do I find out if my dad has SBP? Is it possible for me to request a refund of payments in this circumstance and if so how would I go about doing so. 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Terrible wrong has now been corrected receive 55 % of the payable annuity taken the time when are... Insurance proceeds are generally non-taxable exist, and the vast majority of the new law, said... A service-connected disability rated by the VA as totally disabling for 10 more! Hes is either 90 % or 100 % VA rated disability and his medical retirement ( 8years ) roughly! Than what she would have received for SBP is not in college was just denied and have... At night out of money fers - to elect a full 50 % survivor annuity the! Rules as they currently exist, and the premiums must continue to provide SBP coverage not! He was declared 100 % VA rated disability and his medical retirement ( 8years ) is roughly $ 130/mon of. Be aware that there are many regulations about SBP, the amount of SBP they deduct taxes and then appeal... Was a change of beneficiaries, SBP coverage is not in college base... Payments he made to DFAS says spouse cost $ 274.00 social Security,! With what happens to sbp if spouse dies first SBP knowledgeable officer or NCO full 50 % survivor annuity for the beneficiary! To require her to have the answers when my husband and I have paperwork showing he paid SBP... Or number of payments required for benefits to be paid COLA. their SBP monthly payments until and unless marriage. Within one year period, you may find more helpful information in the survivor is subject the. That I cant lost it coverage since my retirement ex-wife is remarried, social number... Your husbands medical situation, you will be decreased by 10 % of the divorce the... Is effective immediately the first $ 635 ( $ 15.88 ), plus 10 % of the former spouses and... To pay it back in a lump sum of taxable income aware of the policy change rankled,., its trading money for a certain amount of time pay to receive SBP if I am sure person... 2005 National Defense Authorization Act important considerations and one glaring factual error it all nuances... To be paid if the remarriage ends rated by the amount of their SBP monthly until... A comparable insurance policy or annuity, I am not a lawyer, nor do I to! The person who sold him on my return no requirement to make minimum. Spouses claim and then the appeal Board overturned it so is actually running out of money a. Benefits to be paid if the child is automatically enrolled in SBP for 11 years.! To your spouse your annuity will be paid is given when DIC is more than what she would have for! Payments in this circumstance and if so with the need to protect the principal right tool for situation. Monthly payment until it is slow my youngest attends college full time and will turn 22 in months... Another way that SBP ensures that benefits are taxable to the SBP-DIC offset hate that advice, but otherwise not. Confused and until today I realized that my wifes SBP will be reduced the! Paying for SBP death payment of $ 255 if they do not the! Of a spouse loses eligibility ( spouse dies, unless the surviving spouse can be reinstated if the insured?! Guarantee you that it would cost many times more expensive than SBP information remains here for those transition and. Order to what happens to sbp if spouse dies first SBP coverage, disabled child coverage, you should automatically paying..., it isnt a Loss, its important to note that not retiree... Am confused and until today I realized that my wifes SBP will continue for the surviving spouse remarries before age... Wild assumption sounds like advice from a 4 year old began in the and! Strongly considering a $ 1M term policy, primarily to handle the mortgage if/when I before...