MILITARY SURVIVORBENEFITS OVERVIEW

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Social Security Administration (SSA)• Lump sum death benefit• Spouse eligibility based on age of children, spouse’s age and

marital status• Benefits are based on the Primary Insurance Amount

(PIA), which is a dollar amount calculated from wage credits accumulated through paying Federal Insurance Contributions Act taxes

• Eligible dependents receive .75 x PIA up to a family maximum of 1.75 x PIA

• Benefits are not automatic; survivors must apply for themTo learn more, visit socialsecurity.gov/survivors.

Active Duty Survivor Benefit Plan (SBP)• No cost while on active duty• Offset by DICTo learn more, visit dfas.mil or militarypay.defense.gov/survivor/sbp.

KNOW WHERE YOU STANDSurvivor Benefits During Active Duty• Servicemembers’ Group Life Insurance (SGLI)• Death Gratuity (tax-free, lump sum payment)• Survivor Benefit Plan• VA benefits (monthly income and education assistance)

Survivor Benefits After Transition• No SGLI• No Death Gratuity• No automatic Survivor Benefit Plan• No VA benefits unless death is service-connected

SURVIVOR BENEFITS DURING ACTIVE DUTY Named beneficiaries of service members are entitled to benefits through a number of programs and organizations should the service member, spouse or a child die while the service member is on active duty. Here’s a review of those benefits:

This overview can help ensure you have a plan going forward.

Photos courtesy of the Department of Defense

Servicemembers’ Group Life Insurance (SGLI)• Up to $400,000 of coverageTo learn more, visit benefits.va.gov/insurance.

Family SGLI (FSGLI)• Coverage for spouse (up to $100,000) and children

to age 18 ($10,000)To learn more, visit benefits.va.gov/insurance.

Dependency and Indemnity Compensation (DIC)• Provides monthly income for spouses (for life) and children

(to age 18, or to age 23 if unmarried and enrolled in school)• Spouse benefits continue as long as spouse remains

unmarried prior to age 57• Disabled children benefits continue for lifeTo learn more, visit benefits.va.gov/compensation.

Survivors’ and Dependents’ Education Assistance (DEA)• Monthly benefit for 45 months of full-time,

post-secondary education• Available to unmarried spouse and childrenTo learn more, visit benefits.va.gov/GIBILL.

BENEFIT OPTIONS DURING TRANSITION Many of the benefits you have had at little or no cost through the military must now be covered on your own. DIC, DEA and most death benefit eligibilities end once the service member transitions from the service. Survivor Benefit Plan and life insurance are two typical ways to ensure that immediate expenses are paid and that survivors have an income. SGLI and FSGLI coverage ends 120 days after the service member leaves active service. Here are your options for life insurance:

FSGLI• Spouse’s FSGLI is free the first 120 days (since the service

member’s last day of active duty)• Spouse’s coverage can be converted to permanent

life insurance - Without medical underwriting or proof of insurability - Within 120 days• Children’s FSGLI is free the first 120 days (since the service

member’s last day of active duty) - Cannot be converted to either term or permanent

Veterans’ Group Life Insurance (VGLI)• Group term insurance available to all service members

leaving active duty with no medical underwriting; you cannot be denied

• Coverage is guaranteed if elected within 240 days of last day of active duty (separation or retirement)

• Maximum coverage is $400,000; you select the amount in $10,000 increments, starting at $50,000

• Can be converted to commercial permanent/whole life insurance without medical underwriting or proof of insurability at any time

• Cost varies by age and amount of coverage selected

Under 30 ........................... $3230+ ..................................... $4035+ ..................................... $5240+ ..................................... $6845+ ..................................... $8850+ ................................... $144

55+ ................................... $26860+ ................................... $43265+ ................................... $60070+ ................................... $92075+ ................................$1,840

Monthly Cost for $400,000 Term VGLI Coverage

Commercial Life Insurance• Two basic types — term and permanent - Some policies are short term; some last your lifetime• Cost varies based on type of policy, age, medical history,

health and payment period• Individual coverage can be denied — based on age, medical

history and health• Insurability is the most important factor when considering

commercial life insurance versus electing VGLI• Compare, use online resources and do a needs analysis• Talk to someone in the insurance industry before you decide

on what policies are best for your needs

Term Life Insurance• Covers period of time/term (you determine)• Generally less expensive premiums than permanent — during

one’s younger years• Provides peace of mind to address specific needs (mortgage

or children)• Cost steadily increases with age• No cash valuePermanent Life Insurance• Covers entire life of insured — if premiums are paid• Generally more expensive premiums than term — during

one’s younger years• Cost effective way to purchase insurance you intend to

keep long term• Premiums remain level• Builds cash value

RETIREE SURVIVOR BENEFIT PLAN Retiring service members can choose to continue to participate in the Survivor Benefit Plan. The decision to participate must be made at the time of retirement. In the event of that service member’s death, the SBP will provide a portion of his or her retirement pay to a spouse or other beneficiary.

SBP Costs or Premiums• You can choose to cover any amount of your retirement

pay from $300 up to the full amount; this is called the “base amount”

• A spouse (current or former) can be covered for 6.5% of the base amount chosen

• Costs are paid with pre tax dollars and are deducted directly from your retired pay

• Premiums will change with cost of living adjustments (COLA)

• Children can be covered; costs vary based on the ages of the retiree, spouse, and youngest child and the base amount (chosen at date of retirement)

SBP Payments• SBP payments provide survivors with 55% of the base

amount as a monthly benefit (not lump sum)• The amount paid adjusts with COLA

Coverage Options (choose one)• Spouse — payment made monthly to spouse until his/her

death• Spouse and Child — payment is made to spouse first, and

in his or her absence, to the child via a guardian • Child Only — payment is made to the child until age 18, or

to age 22 if enrolled in school (full-time)• Former Spouse or Former Spouse and Child — may be

required by a divorce decree; in this event, a subsequent spouse cannot be covered

• Insurable Interest — for those with no spouse or children; cost is calculated differently; those interested should verify eligibility and review the cost structure

Plan Details• Spouse must agree if coverage is declined or reduced from

full eligible amount• Participation can be ended between the 2nd and 3rd year of

receiving retirement pay with spouse approval• Participation is paid up after 30 years of payment and

attaining age 70• Participant stops paying premiums when: - His or her children are no longer eligible (on the

youngest child’s 18th birthday or 22nd birthday if a full-time student); please note, disabled children may be eligible for life

- His or her spouse dies or he or she divorces• A spouse receiving SBP payments will become ineligible

if he or she remarries prior to age 55; benefits can resume at the death of the new spouse or if the marriage ends in divorce

• Service members without children at the time of retirement may elect coverage for children within one year of their birth or adoption

• An unmarried retiree can elect SBP coverage for a new spouse within a year of marriage; the coverage takes effect one year after the marriage

Web Resourcesnavymutual.org - From the home page, go to “Education” and select “Benefits Calculators” for a Military Survivor Benefits Calculator. You also can search out our blog for more information on FSGLI, VGLI and SBP.actuary.defense.gov - Find SBP subsidy, cost and insurance comparison calculators.dfas.mil - Get details and answers to frequently asked questions about Active Duty SBP.

Questions? Call 1-800-628-6011 or email education@navymutual.org.

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