Survivor Benefit Plan (SBP): How It Protects Your Pension After Death

Updated 2026-06-10

Military retired pay stops when you die — unless you elect the Survivor Benefit Plan. SBP turns your pension into a lifetime annuity for your spouse or children, paying up to 55% of your retired pay for the rest of their life.

How SBP works

• At retirement, you elect SBP coverage based on a chosen "base amount" (up to your full retired pay).
• You pay a monthly premium of 6.5% of the covered base amount, deducted from retired pay (pre-tax).
• If you die, your beneficiary receives 55% of the base amount as a monthly annuity — with COLA adjustments — for life.

Why it's hard to beat with private insurance

SBP is inflation-protected, government-backed, and can't be outlived. Replicating a COLA-adjusted lifetime annuity with private life insurance is usually far more expensive — which is why financial counselors generally favor SBP for a spouse who'd depend on the pension.

Key decision points

• It's a one-time, mostly irrevocable election at retirement — declining requires spouse consent.
• Coverage can include a spouse, children, or former spouse (court-ordered in some divorces).
• SBP and VA Dependency & Indemnity Compensation (DIC) interaction changed in recent years — the old offset was phased out.

SBP applies to the retired pay you earn at 20+ years — estimate that pension first, then weigh the 6.5% premium against the protection it buys your family.

Frequently asked questions

What is the Survivor Benefit Plan?

SBP is an elected annuity that continues part of your military retired pay to a survivor after you die — up to 55% of your chosen base amount, adjusted for inflation, for their lifetime.

How much does SBP cost?

The premium is 6.5% of the covered base amount, deducted pre-tax from retired pay.

Is SBP worth it?

For a spouse who would depend on the pension, usually yes — it's inflation-protected, government-backed, and can't be outlived, which is expensive to replicate with private insurance.