Intro: We buy insurance as a way to cope with major financial risks. We buy it to protect us from the financial hardships of events we can't foresee, like car wrecks and house fires. It protects our valuable assets.
Hello and good morning my name is XX and I am going to introduce the Military Survivor Benefit Plan (SBP) benefits
I am going to tell you about the History of the SBP, give you a brief overview how it works and lastly talk to you about the how to receive it.
Now let me tell you about the History of the SBP.
The SBP actually started in 1972 and the Plan is explained in detail in the United Stated Code in Chapter 73, Title 10. The History is brief but the National Defense act of 2005 made the biggest change to
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* Child Only- Children remain beneficiaries until age 18 or age 22 if a full-time, unmarried student. * Former Spouse- * Person with an Insurable Interest-A member who does not have a spouse or dependent child when eligible to make a program election may elect to provide coverage for a person with an insurable interest in the member. The Department of Defense defines an insurable interest as "a natural person with an insurable interest who has a reasonable and lawful expectation of financial benefit from the continued life of the participating member, or any individual having a reasonable and lawful basis, founded upon the relation of parties to each other, either financial or of blood or affinity, to expect some benefit or advantage from the continuance of the life of the retired member." If the election is for a person who is more nearly related than a cousin, no proof of financial expectation is required. * Inflation Protection-Like your retirement pay the SBP annuity is protected from inflation. Each year when retired pay gets a Cost-of-Living Adjustment - adjustments for inflation, known as 'COLA' -, so does the base amount, and as a result, so do premiums and annuity payments. Meaning that your premiums and annuity payments will increase with the COLA. These increases are determined by the previous year's Consumer Price