Chapter one, Introduction. -- Chapter two, A description of SBP and military survivor benefits. -- Chapter three, How do SBP benefits compare with survivor benefits available to government and private-sector employees? -- Chapter four, Evaluating the effectiveness of SBP. -- Chapter five, Feasibility and advisability of providing SBP commercially. -- Chapter six, Conclusion. -- Appendixes. -- References.
Investing for one's future is a concern for the majority of military retirees. Service members have more choices than their civilian counterparts when planning for retirement. One alternative available to military members is the Survivor Benefit Plan (SBP), which allows retirees to provide for their family's welfare in the event of their untimely death. The purpose of this paper is to analyze the cost effectiveness of SBP in comparison to other insurance or investment options. This paper provides an overview of SBP and possible alternatives. Additionally, a mathematical model has been constructed that conducts a cost-benefit analysis of SBP and alternatives to determine the most beneficial course of action for future retirees. Our major conclusion is that SBP is the most attractive available option only if the military member expects to live for a sufficiently long period and also expects his (or her) spouse to outlive him by a significant amount. However, this result is sensitive to rate of inflation.
Finally, together in one place, a comprehensive resource to help military members and their families learn about the Survivor Benefit Plan. Choosing whether or not to select the Survivor Benefit Plan is a very personal decision, and you deserve to have the most information and insight possible so that you make the right decision for your situation. This book is a starting point for what you need to know so that you can formulate your own decision when it comes to selecting the Survivor Benefit Plan upon your retirement. This book points you to all the available DoD resources, and gives you information to promote your critical thinking. Follow practical case studies based upon families like yours, and the ones you see throughout your career. Perhaps you'll see yourself in one of their stories and know the steps to take to start your journey about whether or not to choose to participate in the Survivor Benefit Plan. Over the next few decades, hundreds of thousands of military families will be making their transition into military retirement. Learn how you can address the financial risks that you and your family face, and make the right financial decision as you choose whether or not the Survivor Benefit Plan is right for you. This book is a quick read, and designed to be both a personal and informational resource for you to make one of the most important decisions of your military transition.
Those benefits which comprise the Government-provided Military estate Program (less retirement) are addressed in this volume. They include Death Gratuity, Burial Expenses/Flag, Dependency Indemnity Compensation, the Survivor Benefit Plan, Servicemen's Group Life Insurance, and social security benefits. The assessment of these benefits began with a review of the original intent, the current status and, where applicable, its value in comparison with its private-sector counterpart. The key consideration through all the analyses was the proper division of responsibility for survivor estate planning between the Government and the individual service member. Other considerations included the applicability to both wartime and peacetime conditions, the requirements of a volunteer force versus those of a conscripted force, and the special problems and needs associated with Service life. The volume contains a compilation of the legislative histories of each of the benefits, a detailed description of the analytical approach employed, and a comprehensive discussion of the group's findings and recommendations for change, where the findings so dictated. The information in this volume is presented in such a manner that it is understandable to the average reader yet technically correct and highly revealing to the econometrician.
