SBP stands for Survivor Benefit Plan, which is a program sponsored and subsidized by the Department of Defense that provides financial support to military spouses and/or children when a military member dies while on duty or after retirement. The program provides eligible beneficiaries with a monthly payment known as an annuity, which is a percentage of the retired pay based on the members election. The amount of the benefit depends on whether the member chooses full or reduced coverage at the time of election, and it can provide up to 55% of a service members retired pay to an eligible beneficiary upon the death of the member.

SBP is similar to life insurance, but it also protects the survivor against the possibility of outliving the benefit. The premiums are partially funded by the government, and the costs of operating the program are absorbed by the government, making the average premiums well below the cost for a conventional insurance policy. Enrollment in an annuity plan is not automatic, and there are costs. The SBP election does not entitle the beneficiary named for SBP to Arrears of Pay (AOP), and a separate AOP designation has to be made in order to designate the desired individual.