SBP vs. Life Insurance Modeler
Compare Survivor Benefit Plan premiums against a term life quote — monthly cost and total cost over your horizon.
⚠ Educational Information Only. This content provides general educational information based on verified government sources. It is not financial, legal, or tax advice. Your situation is unique — please consult a licensed professional before making any decisions. Find a Trusted Professional →
Monthly cost comparison
SBP premium (6.5% of elected base)$195/mo
Term life premium (your quote)$75/mo
SBP survivor annuity (55% of base)$1,650/mo for life
Total cost over 20 years
SBP total premiums$46,800
Term life total premiums$18,000
This is a mathematical comparison only. SBP and life insurance are structurally different: SBP pays an inflation-adjusted lifetime annuity and cannot lapse; term insurance pays a one-time benefit and expires. SBP premiums stop after 30 years of payments and age 70 (“paid-up”). Consult a licensed insurance professional before electing or declining SBP — the election at retirement is largely irrevocable. Rates per DFAS at dfas.mil.
Sources: SBP premium and annuity percentages per DFAS.
This calculation is for educational planning purposes only. Results depend on your specific situation. Find a Professional →