What is the difference between monthly installments and paying in a lump sum for service buyback (elective service)?
If you choose to buyback previous service, you have the option between paying for this buyback in monthly installments or in a lump sum payment at the time the election is made. Monthly installments are more costly than a lump sum payment because the monthly cost includes a mortality charge to cover the cost of insurance and interest on the unpaid balance. In the event of your death, neither your estate nor your survivors are required to make any payments owed after your death.
