OK, Wray and other full timers... I know you have probably seen this question a hundred times. I was just trying to find a good calculator to determine my retirement benefit with 21 years of Honorable service "all me blooming life :0)", when along came this question... Should I have signed up blindly for the SBP max 6.5% because it was easier then trying to explain to my wife about something I really didn't have the chance to research when I initiated my retirement package? Looking for some experienced Chiefs guidance and perhaps a few good links to assist in the matter. Thanks for your efforts and the assist.

Landder

Thanks

Here is an old discussion about SBP.

http://forums.military.com/eve...851001#7140092851001

Dan, Have you attended a TAPS class yet? When I went to mine I discussed with a Navy Mutual Insurance agent, what would be best.. to take out another 100K life ins policy, OR, SBP... he recommended and showed my on paper how much better the SBP is...

Of course there are many things to think about.. umber and ages of kids? wife's age? Your age? etc... In my case, I feel my wife will be much better getting somethening monthly, as long as she lives, just like my retirement check, than a larger lump sum which could be ****ed away in a year or two. You know the old female theory, if they have checks they have money in the account...

Many people, in my estimation, are over insured.. I figure if I leave my wife a house, with no mortage, a 100K life ins policy, and a monthly draw from the SBP that is all she needs...

Does that help at all?

Wray....

quote:

Originally posted by Wray:
Dan, Have you attended a TAPS class yet? When I went to mine I discussed with a Navy Mutual Insurance agent, what would be best.. to take out another 100K life ins policy, OR, SBP... he recommended and showed my on paper how much better the SBP is...

Of course there are many things to think
about.. umber and ages of kids? wife's age? Your age? etc... In my case, I feel my wife will be much better getting somethening monthly, as long as she lives, just like my retirement check, than a larger lump sum which could be ****ed away in a year or two. You know the old female theory, if they have checks they have money in the account...

Many people, in my estimation, are over insured.. I figure if I leave my wife a house, with no mortage, a 100K life ins policy, and a monthly draw from the SBP that is all she needs...

Does that help at all?

Wray....

Well put Wray,
Many of us should read ALL the fine print in such insurance policies. The way you pass may dictate what your loved ones receive. "Don’t go Insurance Poor". It’s all about interpretations. I elected to take full SBP & after 30yrs service and 55%, house, cars, and a small LIP, my baby can still sit on the porch and enjoy the Mountain View. just my two cents.

Well, I think there is no perfect answer to this question. I see Wray's point of view. I personally took out various life insurance policies for much less than what SBP would have cost me per month. On top of that, SBP is only going to pay your spouse a % of your retirement pay (not 100%) and it will fade away when SS (if sill around) kicks in. BUT, before you (or me) decide that one option is better than the other one, as recommended here, do your homework, look at your personal situation, and make an educated decision. Either way the decision is good....as long as you get either insurance or you keep SBP. There is no requirement to get insurance if your spouse signs off on the SBP. I can't imagine that situation or conversation, but I am sure it happens. Good luck!

Keko, they are all perfect answers.. however they are different for each of us.

The only think I have against "term insurance" is that it usually goes away when you hit age 70. So... all the money you have put into it is down the drain.

I recently got my son (age 20) a whole life policy that I am paying for. He will be able to get it all back at 40 if he chooses, or he can also borrow against it if he needs money for a house downpayment, or anything else. I think his (my) monthly payments for him are about $50, where mine are around $170... but I didn't take mine out till I was 40 or so... It REALLY pays to get insurance at an early age.

Mine works for me, yours works for you... It's all good.. and Retirement is even better!

Wray...

All very good responses to my question thanks you all. Since the sock of looking into a very important decision and feeling overwhelmed, I have done just what was advised. Made myself more aware and I feel that in the end with my children being only 10,7 and 5. A balance and diversity is what I am going for. I still don’t know if the SBP will be a part of it as my wife of 5 years has a great deal to say about that as well and she is still getting informed. I would rather be over insured then under but not insurance poor. My hopes are to start a second career with the feds, so I will also look into WEAPA policy which seems to have a great program for those employed by the Feds as a civilian. Again thanks for all the advice over the years, I rarely post but read the boards a great deal…….

Thanks
Landder

Dan,
Not sure what state you are in, but you may want to look into a pre-paid college program for your kids... I did that for all 3 of mine.. a 4 year degree and 2 year dorm package.. GREAT DEAL... This is available in states other than just Florida.

"http://www.myfloridaprepaid.com/foundation/"

Wray...

Wray,
I am up in MA and plan to use my post 911 Bill for the kids as from what I understand it is transferable for 15yrs. I also am a saver thanks to my wifes influence so the 529's should help them out as well. Again thanks again for the assist.

Dan

Wray, you are correct. Matter of fact, I have both. My approach is never to have all my eggs in one basket. So I have multiple small policies of both types.

Now, remember, a whole life insurance is far more expensive that a term insurance. Yes, when you turn 70 it goes away. However, at that age, my kids will be 46 and 42. If at that age, they depend on my life insurance to get ahead on life, they have other issues. As far as my spouse after 70 I go and she is around, that's why I have other baskets. For her to move on for whatever few years she has left. Besides the fact that she is a professional w/ her own pension, investments and insurance too. Shoot, she makes more $ than I do.

But yes, each has good and less than good (no such thing as bad when talking about this) features. Bottom line, diversification applies not just to investment but to life insurance as well.