Commutative Property. An operation is commutative if you can change the order of the numbers involved without changing the result. Addition and multiplication are both commutative. Subtraction is not commutative: 2 - 1 is not equal to 1 - 2. Here are some examples of the commutative properties of addition and multiplication: 88 + 65 = 65 + 88. 153 = 153.
Another consideration is that SBP premiums reduce the retiree's taxable income and reduce out-of-pocket costs for coverage. SBP benefits are taxed as income to the survivor however the tax rate upon receipt of the annuity will generally be less than the member's current tax rate. Most insurance plans are the reverse; premiums are paid from after-tax income, while survivors are not taxed on the proceeds.
Advantages & Disadvantages. Advantage: SBP benefits are inflation indexed, and coverage and cost are not affected by illness or age. Unlike many private life insurance policies, SBP coverage will not be cancelled or revoked due to any illness you may have or your age. Whether you retire at age 45 or 80, you or your spouseâs age or health will never be considered a liability and never impact the cost of the program.