MENU
  • Why AAFMAA
    • What We Stand For
    • Member Referral
    • Member Stories
      • Active Duty Military
      • Retirees & Veterans
      • Military Spouses
  • Decision Center
    • Choosing Life Insurance
      • Why you need life insurance
      • Choose the life insurance that's right for you
      • Designating a beneficiary
      • Understanding your settlement options
      • SGLI & Life Insurance
    • Military Life
      • Managing a relocation
      • Leaving the military
      • Understanding your VA benefits
      • Deployment Entitlements
      • Deployment Finances
      • Deployment Checklist
    • Tools, Forms & Resources
      • Calculate your life expectancy
      • Calculate your insurance needs
      • Cadet/Midshipmen Introductory Membership Application
      • Risk Tolerance Assessment
      • 1035 Exchange
      • Military & Government Resources
      • Downloadable AAFMAA Forms
    • Assistance for Survivors
      • Loss of a loved one
      • Report a Death Online
      • How we can help
      • Survivor Benefits
    • Financial Planning
      • Why financial planning is important
      • What is involved in the planning process
      • The Information Checklist
    • Estate Planning Basics
      • 5 Reasons Why You Need A Will Today
      • 3 Things That Matter In Your Will
      • 3 Ways to Avoid Creating Problems for your Survivors
      • Estate Planning FAQs
  • Browse Products
    • Life Insurance
      • Cadet and Midshipmen
      • Level Term I
      • Level Term II
      • Term
      • 5 Year Renewable Term
      • Value-Added Whole Life
      • Generations Plus
      • Wealth Builder Life Insurance
      • Long-Term Care Settlement Option
      • Information Request Form
    • CAP Loan
      • CAP for College
    • Wealth Management
      • Financial Planning
      • Investment Management
      • Trust Services
    • Member Benefits
      • Premier Services
      • Survivor Assistance Services
    • Mortgage
      • Loan
      • Refinance
      • Construction
  • About AAFMAA
    • Mission & History
    • Financial Foundation
    • Meet the Team
    • Annual Reports
    • Careers
  • Forms
  • Pay Now
  • Contact Us
    • Office Locations
    • General Inquiries
    • Life Insurance
    • Member Benefits
    • Wealth Management & Trust
    • Mortgage
  • Newsroom
    • INTEL Center
    • Newsletters
    • White Papers
    • Webinars
    • Videos
    • FAQs
AAFMAA: Military Life Insurance, Benefits & Financial Solutions
  • About AAFMAA
  • Forms
  • Pay Now
  • Contact Us
  •  
       
  • Get A Quote 
  1. Why AAFMAA

    1. What We Stand For

    2. Member Referral

    3. Member Stories

      • Active Duty Military

      • Retirees & Veterans

      • Military Spouses

  2. Decision Center

    1. Choosing Life Insurance

      • Why you need life insurance

      • Choose the life insurance that's right for you

      • Designating a beneficiary

      • Understanding your settlement options

      • SGLI & Life Insurance

    2. Military Life

      • Managing a relocation

      • Leaving the military

      • Understanding your VA benefits

      • Deployment Entitlements

      • Deployment Finances

      • Deployment Checklist

    3. Tools, Forms & Resources

      • Calculate your life expectancy

      • Calculate your insurance needs

      • Cadet/Midshipmen Introductory Membership Application

      • Risk Tolerance Assessment

      • 1035 Exchange

      • Military & Government Resources

      • Downloadable AAFMAA Forms

    4. Assistance for Survivors

      • Loss of a loved one

      • Report a Death Online

      • How we can help

      • Survivor Benefits

    5. Financial Planning

      • Why financial planning is important

      • What is involved in the planning process

      • The Information Checklist

    6. Estate Planning Basics

      • 5 Reasons Why You Need A Will Today

      • 3 Things That Matter In Your Will

      • 3 Ways to Avoid Creating Problems for your Survivors

      • Estate Planning FAQs

  3. Browse Products

    1. Life Insurance

      • Cadet and Midshipmen

      • Level Term I

      • Level Term II

      • Term

      • 5 Year Renewable Term

      • Value-Added Whole Life

      • Generations Plus

      • Wealth Builder Life Insurance

      • Long-Term Care Settlement Option

      • Information Request Form

    2. CAP Loan

      • CAP for College

    3. Wealth Management

      • Financial Planning

      • Investment Management

      • Trust Services

    4. Member Benefits

      • Premier Services

      • Survivor Assistance Services

    5. Mortgage

      • Loan

      • Refinance

      • Construction

  • Get A Quote 
  •  Member Center
  • INTEL Center
Responsive Image

Welcome to the INTEL Center

The INTEL Center provides military families with military life insurance, personal finance, financial planning, government benefits and beneficiary information.

  Subscribe to get automated Intel Center updates!

AAFMAA will not share your information with nonaffiliates for marketing purposes

Go

Subscribe to Intel Center

Please provide your contact information for updates:

Choose the Categories You Are Interested In:

 









Military Benefits Articles

15 or 30-Year Mortgage – What Should I Choose?

With all the various decisions that come with a home purchase, one of the most important is deciding between a 15-year mortgage and a 30-year mortgage. Both options have their benefits and drawbacks, so there’s no across-the-board “correct” answer. Besides, every home buying scenario is unique, so your rate will be unique to you as well. Weighing the pros and cons of both options is a great first step for finding the loan that’s best for you. For instance, let’s assume the 15-year rate for a loan is 4.0% and the 30-year rate is 4.5% and see how both affect a home-buying scenario.

Adding a Dependent to Your VA Disability Award

Veterans who have at least a 30% total VA disability rating can apply to add a dependent to their compensation award and increase their compensation rate. The best time to do this is when you file your claim. If your disability rating is below 30%, you can still file your dependency information.

Military Benefits for Disabled Adult Children

In order to remain eligible for military benefits, sponsors who have disabled adult children must complete a financial dependency redetermination requirement every four years. If you fail to do so, it may result in a loss of DEERS eligibility and military benefits for the disabled dependent.

What is the Survivor Benefit Plan (SBP) and is it the right option for you?

Share
Written By
AAFMAA Team
Tags

AAFMAA Resources

Military Benefits

2015-09-17

There is some confusion surrounding the Survivor Benefit Plan (SBP). SBP is a form of financial protection offered by the Department of Defense and was designed to give survivors coverage for lost military or retirement pay when a servicemember dies. Under the SBP, also referred to as a “survivor annuity plan,” a military retiree’s spouse (and/or eligible dependents) can receive up to 55% of the military pension (paid monthly for the life of the beneficiary) upon the death of the retiree. Unfortunately, SBP does not simply kick in once a servicemember dies. Generally, a servicemember must decide whether or not to enroll in the SBP at the time of military retirement.

There are several basic options with SBP: spouse-only, spouse and child, former spouse, child-only, and natural person of interest. Each election option has differing costs. The premium for the spouse-only option (for 55% of the pension) is 6.5% of the amount of the monthly pension selected for SBP. This premium is pre-tax. If SBP is not selected, the retiree’s spouse must agree and provide a notarized signature.

The protection provided by SBP is comparable to a permanent life insurance policy, with distinct advantages and disadvantages. One advantage is that the benefit is adjusted for inflation, while the death benefit on most life insurance policies is not. Another advantage of SBP is there is no medical underwriting required. Permanent life insurance policies typically require medical qualification on the insured. As the insured ages, he or she will have increased premiums to pay and may not qualify for stringent underwriting requirements. The growth of the cash value of a permanent life insurance policy is dependent on the investment management of the insurance carrier, however this management can lead to better growth potential than SBP.

More details about SBP can be found at the DFAS website: http://www.dfas.mil/retiredmilitary/provide/sbp.html. 

Intel Categories

  • AAFMAA Resources
  • Military Benefits
  • Introductory Membership: Cadets & Midshipmen
  • Military Spouses & Dependents
  • Life Insurance
  • Mortgage & PCS Resources
  • Military Transition
  • Personal Finance
  • Financial Planning & Investment
  • Military Retirement
  • Estate Planning Basics
  • In The News
  • Follow Us:
  •  
  •  
  •  
  •  
  •  
  • SpouseLink.org
  • INTEL Center
  • Why AAFMAA
    • What We Stand For
    • Member Referral
    • Member Stories
      • Active Duty Military
      • Retirees & Veterans
      • Military Spouses
  • Decision Center
    • Choosing Life Insurance
    • Why you need life insurance
    • Choose the life insurance that's right for you
    • Designating a beneficiary
    • Understanding your settlement options
    • SGLI & Life Insurance
    • Military Life
    • Managing a relocation
    • Leaving the military
    • Understanding your VA benefits
    • Deployment Entitlements
    • Deployment Finances
    • Deployment Checklist
    • Tools, Forms & Resources
    • Calculate your life expectancy
    • Calculate your insurance needs
    • Cadet/Midshipmen Introductory Membership Application
    • Risk Tolerance Assessment
    • 1035 Exchange
    • Military & Government Resources
    • Downloadable AAFMAA Forms
    • Assistance for Survivors
    • Loss of a loved one
    • Report a Death Online
    • How we can help
    • Survivor Benefits
    • Financial Planning
    • Why financial planning is important
    • What is involved in the planning process
    • The Information Checklist
    • Estate Planning Basics
    • 5 Reasons Why You Need A Will Today
    • 3 Things That Matter In Your Will
    • 3 Ways to Avoid Creating Problems for your Survivors
    • Estate Planning FAQs
  • Browse Products
    • Life Insurance
    • Cadet and Midshipmen
    • Level Term I
    • Level Term II
    • Term
    • 5 Year Renewable Term
    • Value-Added Whole Life
    • Generations Plus
    • Wealth Builder Life Insurance
    • Long-Term Care Settlement Option
    • Information Request Form
    • CAP Loan
    • CAP for College
    • Wealth Management
    • Financial Planning
    • Investment Management
    • Trust Services
    • Member Benefits
    • Premier Services
    • Survivor Assistance Services
    • Mortgage
    • Loan
    • Refinance
    • Construction
  • About AAFMAA
    • Mission & History
    • Financial Foundation
    • Meet the Team
    • Annual Reports
    • Careers
  • Contact Us
    • Office Locations
    • General Inquiries
    • Life Insurance
    • Member Benefits
    • Wealth Management & Trust
    • Mortgage
  • Newsroom
    • INTEL Center
    • Newsletters
    • White Papers
    • Webinars
    • Videos
    • FAQs
  • Member Center
    • Pay Now!
    • Login
    • Register
AAFMAA Logo
  • Privacy Policy
  • Terms & Conditions
  • Social Security Number Policy
Copyright 2017 American Armed Forces Mutual Aid Association.

102 Sheridan Avenue, Ft. Myer, VA 22211-1110

Wealth Management, Financial Planning & Trust Services provided by AAFMAA Wealth Management & Trust,
a North Carolina Limited Liability Company wholly owned by AAFMAA.

Mortgage services provided by AAFMAA Mortgage Services LLC, a wholly-owned subsidiary of AAFMAA. AAFMAA Mortgages Services is only available for the financing of residential property in the states listed here. Physical address: 639 Executive Place, Suite 203, Fayetteville, NC 28305. Lender NMLS: 1423968