Survivors of service members who die while serving on active duty are eligible for a wide range of pay and benefits. These come in three distinct categories: one-time payments or allowances, monthly payments and ongoing benefits. We’ll discuss each category in a separate article because there’s a lot to understand.
Monthly payments come through two programs. While separate in their rules, payment structures and eligibility criteria, these programs work together to help provide ongoing financial stability for surviving families.
Survivor Benefit Plan (SBP)
The Survivor Benefit Plan (SBP), administered by the Department of Defense, is typically the largest continuing monthly payment available to survivors. For families of service members who die while on active duty, the SBP provides an annuity that pays 55% of the retirement amount the service member would have earned, if they had been retired with a 100% VA disability rating at the time of their death.
This benefit calculation is based on a combination of the member’s paygrade and total years of service. Depending on those factors, the monthly amount may vary widely – from a relatively modest sum to several thousand dollars per month. One important detail for families to note is that SBP payments are considered taxable income.
By law, SBP benefits for the survivors of active-duty deaths are distributed according to a set order of preference. This is different from retiree SBP benefits, where the retiree designates what beneficiary coverage they want at retirement.
If the service member had a former spouse awarded SBP coverage through a divorce decree or legal settlement, that individual would be the first in line to receive payments. Otherwise, the benefit passes to the surviving spouse. If there is no surviving spouse, the benefit is divided among eligible dependent children.
For families of service members who die while serving on active duty, no premiums are required for SBP coverage. This is a significant distinction, because retired military personnel must pay monthly premiums to maintain SBP protection. In short, SBP is automatically provided at no cost to survivors in the case of an active-duty death.
Dependency and Indemnity Compensation (DIC)
The other key recurring payment for survivors comes from the Department of Veterans Affairs.
Dependency and Indemnity Compensation (DIC) supports spouses, children and, in certain circumstances, even parents of service members who died because of conditions related to military service.
DIC payments are a flat rate, regardless of military paygrade or years of service. For 2025, the base monthly rate for a surviving spouse is $1,653.07. Each dependent child under the age of 18 qualifies for an extra $409.53 per month. Lastly, there is a transitional benefit of $350 per month available for two years to the surviving spouse who is caring for children under age 18.
Unlike SBP payments, DIC is not considered taxable income, which can result in more take-home income for families each month.
Why Understanding Benefits Matters
When combined, SBP and DIC can offer a steady stream of monthly income to survivors of active-duty deaths. These payments, together with lump-sum payments and ongoing benefits, may cover most or all day-to-day living expenses.
A clear understanding of SBP and DIC benefits is especially important for long-term planning.
Knowing how these payments work can influence decisions about whether to purchase additional life insurance, how to structure family finances or whether a surviving spouse returns to work. For service members and their loved ones, being aware of these options in advance can ease uncertainty and provide some peace of mind.
While no financial assistance can replace the loss of a loved one, these programs are designed to honor service members’ sacrifices by ensuring their families are not left without essential support.
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