05-20-2007, 11:50 AM | Post #200561 |
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I'm retiring from the military next month (I start terminal leave) after 24 years, 7 months, and 11 days of service....WOOHOO!!!
I'm soliciting information from anyone who may be able to help me make an informed decision in regards to the military SBP.
I'm 43 years of age, my wife is 42 and we are both in excellent health. We have 20 year term life insurance polices of $250,000 on each of us through USAA that we started about 4 years ago.
Thanks to the unselfish advice and guidance of the Diehards mentors on this forum, our net worth has grown to approximately $470,000. Our assets are diversified into various investment mutual funds, bonds, and a money market account for emergencies and we are fully invested for the long term.
My question is this: Is it truly worth having SPB when we have a 20 year term insurance polices on each other? The main reason we opened up the term insurance polices was to avoid the higher cost of SBP when I retired. The cost of the USAA term policy is much cheaper (35.33) than what I would pay for SPB ($153.66), a net difference of $118.33 a month that could be reinvested.
If I died tomorrow, our investments are enough to pay off the mortgage on the house using our taxable assets (not retirement assets), and we have no debt. My wife works and makes approx $25-30K a year.
Is it still in our best interest to utilize SPB?
Thanks for all of the help.
Originally posted in thread: 59013