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.
If you elect to participate in the SBP you will be required to pay a monthly premium. SBP Premiums and benefits are based on the base amount or benefit level that you elect. Your base amount can be any amount from full coverage down to as little as $300 a month.he SBP is an insurance plan that will pay your surviving spouse a monthly payment (annuity) to help make up for the loss of your retirement income. The plan is designed to protect your survivors against the risks of: 1  Your early death; 2  Your survivor outliving the benefits; and. 3  Inflation.