SBP participation for newly minted retirees, however, has risen only modestly. The sign-up rates raise concerns that too many careerists, particularly sailors and Marines, aren’t briefed well on the bargain SBP represents for protecting spouses, dependent children or even ex-spouses from financial hardship after retirees die.

Last fiscal year, 33 percent of sailors entering retirement with spouses or children declined to enroll in SBP. The turndown rate was 31 percent among retiring Marines. By contrast, only 16 percent of retiring soldiers and 18 percent of retiring airmen rejected survivor benefits.

The rejection rates were only 2 to 4 percentage points lower than in 2005, even though Congress has ended the plan’s most unpopular feature, the “Social Security offset,” and has approved a “paid-up premium” rule to benefit long-time participants. That will take effect Oct. 1.

Brad Snyder, president emeritus of the Armed Forces Services Corporation, has conducted perhaps 4,000 briefings and counseling sessions for retiring members on SBP since the plan began in 1972. Like many benefit experts, Snyder believes SBP can’t be matched by alternatives being pitched to retiring careerists by insurance companies and investment firms.

In 2004, the government subsidized 24 percent of overall SBP costs with retiree premiums covering 76 percent. By October, Defense officials say, the subsidy will average 50 percent, delivering significantly more savings to participants.

Snyder needs only a few seconds to gut any debating point raised by insurance or investment firms for rejecting SBP in favor of company products. For example:

Insurance plan premiums won’t be increased like SBP. True, Snyder explained, but policy values also won’t change and will lose ground to inflation over time. SBP premiums rise annually but the increases are tied to rising retired pay, and a proportional rise in SBP coverage.

SBP gives no money back if spouse dies first. “You can’t have money come back when your benefit is subsidized and you’re not paying the full amount in the first place,” Snyder said. “Second, if you drive an automobile and don’t have an accident this year, you’re not going to get your money back. Here, you bought SBP coverage in case you died that year.”

SBP provides no residual estate for children. That’s not a primary mission of SBP, said Snyder. “I have six children. My residual estate to my children will be a financially independent mother. Fifty-five percent of my retired pay will meet her basic needs, and the other part of my estate she will not have to live on. Therefore the children will be better off.”

To reach military columnist Tom Philpott, e-mail milupdate@aol.com or write to Military Update, PO Box 231111, Centreville, VA, 20120-1111.