SBP?
08-02-2014, 10:34 PM
#21
Gets Weekends Off
Joined APC: Apr 2013
Position: Retired AF/A320 FO
Posts: 326
Originally Posted by Sputnik
Mike,
FWIW, my father in law is a pretty successful financial manager, he laid out what it would cost for me to buy anything inflation adjusted that would provide the same payout. It was a lot more than SBP. And didn't take into account the pilot part of the puzzle. I told you I'm a pretty conservative guy financially, to me this was the conservative move. Doesn't mean it was smart, but it a piece of what lets me sleep at night.
For the guys with term, it's been a while since I've looked so I appreciate the tips. I need to set more up, currently all I have is through AAMAA. When I looked in the past, everything had declining payouts based on age. I.e. they might cover me till 70 at a constant monthly rate, but the payout wasn't very much. I think they starting dropping when I hit my 50s.
Gr8vu, are you saying if you kick at 75 it'll pay out full $800k?
E6--for the record, it's 55% of your 50, but I take your point.
FWIW, my father in law is a pretty successful financial manager, he laid out what it would cost for me to buy anything inflation adjusted that would provide the same payout. It was a lot more than SBP. And didn't take into account the pilot part of the puzzle. I told you I'm a pretty conservative guy financially, to me this was the conservative move. Doesn't mean it was smart, but it a piece of what lets me sleep at night.
For the guys with term, it's been a while since I've looked so I appreciate the tips. I need to set more up, currently all I have is through AAMAA. When I looked in the past, everything had declining payouts based on age. I.e. they might cover me till 70 at a constant monthly rate, but the payout wasn't very much. I think they starting dropping when I hit my 50s.
Gr8vu, are you saying if you kick at 75 it'll pay out full $800k?
E6--for the record, it's 55% of your 50, but I take your point.
My wife's family all live into their 80s and 90s and I watched her grandmother try and live on a railroad pension for over 50 years that was not adjusted for inflation. She spent the last several in a rest home and had to be declared insolvent by the family to get social security to cover it. I have 7 kids so I don't want my wife to have to worry about a thing.
Do the math on how fast your premiums are paid back if the wife just gets a few years of payout.
I have always bought term and invested the rest and plan to be self insured. I also got a bonus when I found out my new job provide 560K free. But for my situation I rest easier knowing I have plan a and plan b covered at affordable costs to take care of the wife and kids.
As stated everyone has different factors.
08-03-2014, 05:34 AM
#22
Gets Weekends Off
Joined APC: Dec 2007
Position: Retired
Posts: 404
Originally Posted by full of luv
Well if you divorce or spouse dies premiums stop unless you remarry.
Also no Ssn offset and you can quit one time after 24 months then you are in for 30 yrs then premiums stop.
Also no Ssn offset and you can quit one time after 24 months then you are in for 30 yrs then premiums stop.
08-03-2014, 05:38 AM
#23
Gets Weekends Off
Joined APC: Dec 2007
Position: Retired
Posts: 404
Originally Posted by gr8vu
I am a big AAFMA fan and used them for years. I exchanged my 800k term that begins decreasing at age 50 and went with their 30 year term that is good until 75 for me--warning age 45 is your last chance to do this since term policies don't usually go past that age.
My wife's family all live into their 80s and 90s and I watched her grandmother try and live on a railroad pension for over 50 years that was not adjusted for inflation. She spent the last several in a rest home and had to be declared insolvent by the family to get social security to cover it. I have 7 kids so I don't want my wife to have to worry about a thing.
Do the math on how fast your premiums are paid back if the wife just gets a few years of payout.
I have always bought term and invested the rest and plan to be self insured. I also got a bonus when I found out my new job provide 560K free. But for my situation I rest easier knowing I have plan a and plan b covered at affordable costs to take care of the wife and kids.
As stated everyone has different factors.
My wife's family all live into their 80s and 90s and I watched her grandmother try and live on a railroad pension for over 50 years that was not adjusted for inflation. She spent the last several in a rest home and had to be declared insolvent by the family to get social security to cover it. I have 7 kids so I don't want my wife to have to worry about a thing.
Do the math on how fast your premiums are paid back if the wife just gets a few years of payout.
I have always bought term and invested the rest and plan to be self insured. I also got a bonus when I found out my new job provide 560K free. But for my situation I rest easier knowing I have plan a and plan b covered at affordable costs to take care of the wife and kids.
As stated everyone has different factors.
08-03-2014, 09:23 AM
#24
Gets Weekends Off
Joined APC: Jul 2007
Position: FDX 767 FO
Posts: 817
Originally Posted by Flyinhigh
I recently retired from FedEx and went the self insured route for my pension. I was able to get one million in term insurance starting at age 65 that will carry me to age 90 with no reduced benefit. Cost was not that bad.
08-09-2014, 06:47 AM
#26
Gets Weekends Off
Joined APC: Mar 2007
Position: Petting Zoo
Posts: 2,074
Originally Posted by Flyinhigh
Looks like a lot has changed with the SBP since I left the military. These are all great changes and make this program look really attractive. There must be some kind of federal subsidy to keep this going. I don't think the program would be self sustaining under the current terms.
As many have stated, everyone's situation is different. Got to make the right call for you and yours.
Here's some useful info
Overview of the Survivor Benefit Plan
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