The Survivor Benefits Plan (SBP) is an insurance benefit that provides a monthly income (annuity) to any eligible spouse and children when a retired servicemember dies. The SBP covers the insured for his/her entire life, with no age limit. Upon death, it provides an inflation-protected annuity for the life of your surviving spouse or other eligible beneficiary.
The SBP payment depends on the elected base amount ($300/month to the full amount of the monthly retirement pay). The annuity is 55% of the base amount. The SBP is provided at no cost while on active duty, but is offset by any spouse dependency and indemnity compensation (DIC). Active duty-deaths are considered totally disabled, which means that retirement pay is based on 75% of base pay (subject to retirement plan rules for Final Pay, High 3 or REDUX). Participation is voluntary for retirees with payments made via deduction from retirement pay.