The 2023 SBP Open Season is over half way over! This is an important opportunity for you to review and understand so that you can decide if enrolling in this benefit is right for you.
Generally, you must enroll in SBP when you retire, but due to the 2023 National Defense Authorization Act, enrollment has been opened for 2023 ONLY for those who previously retired but did not enroll. There are a variety of reasons you may have declined this benefit when you left the service, but it might be time to review this benefit to see if it makes sense for you and your family now.
SBP has been around for many years, and as a part of our Military Benefit Coordination Services, we have seen that it is one of the greatest areas of confusion for our military clients. There are several options within SBP, so the first step is deciding which of these elections best fits into your financial plan.
Here are a few key take aways:
- SBP is an annuity. It provides a guaranteed income over a guaranteed amount of time.
- The process starts with a Letter of Intent to enroll. This is not a commitment to enroll, it is simply a request for an outline of your options.
- There is a buy-in premium AND a monthly premium.
- Costs and coverage vary from person to person.
- In our experience, once you submit the Intent to Enroll, the processing time is several months, so if you are interested you SHOULD NOT WAIT.
If you or someone you know is retired from any branch of the armed forces and have questions about SBP enrollment, please give us a call. It is our honor to serve you.
~The Purpose Planning Team