Planning Point: There are some options the retiring servicemember should consider prior to opting for the SBP. The first is what other options exist for the cost of the premium. The term “retiree” generally connotes a person in his or 60s or 70s. However, military retirees are generally healthy and in their 40s when they retire from the armed services. Permanent life insurance could be a viable solution for some retirees in lieu of the “use it or lose it” SBP. Additionally, several whole life and indexed universal life policies come with long-term care riders that help buy down the risk of a long-term care stay as a result of Alzheimer’s or other serious diseases. It is also possible that the cash value built up in the policy over 20 to 30 years in retirement could provide a source of tax-free income later into retirement to help offset rising inflation and medical care. Justin L. Baker, JD, MBA, Army Reserve Lieutenant Colonel, Candidate for LLM in Wealth Management and Masters in Strategic Studies at the U.S. Army War College; https://www.bakerwealthstrategies.com/welcome/
1.Herndon, Molly. “The Survivor Benefit Plan: Pros and Cons.” Military Families Learning Network, 4 Aug. 2017, militaryfamilieslearningnetwork.org/2017/08/04/the-survivor-benefit-plan-pros-and-cons/
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