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Automatic Increase Benefit (MetLife Disability policy)

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  • Automatic Increase Benefit (MetLife Disability policy)

    I'm coming up on the first anniversary of my DI policy and I just got a letter stating that they will automatically increase my benefit as part of the "automatic increase benefit rider".  I currently have $17,000 monthly benefit with COLA, plus another employer paid group policy for an additional $5,000.  If I accept the AIB, benefit increases by $850/mo and my annual premium will go up about $250.

    I feel that I am already pretty well insured, but I am wondering if cancelling the AIB is a dumb idea.  If I cancel it this year and next, I will not be able to ever increase the coverage amount without taking out a new policy.


  • #2
    The Automatic Increase Benefit (AIB) will increase your monthly benefit by 5% of the original benefit amount for the first 5 years that you own the policy. This increase can be accepted regardless of your earned income or any other disability insurance inforce (individual, association or group LTD).

    If you want to cancel it this year, it is not a problem. The AIB will no longer be available after you cancel two consecutive scheduled increases.

    Odds are very good that you purchased MetLife for a reason (cost vs. benefits). If you can purchase more of it, I would suggest that you do. Should you want to purchase coverage elsewhere in the future, it will likely be more expensive and subject to financial underwriting, as well as, medical underwriting. Remember, this will only be available to you for the first 5 policy years and anything you don't accept will reduce your total coverage amount available with MetLife.

    Lawrence B. Keller, CFP, CLU, ChFC, RHU, LUTCF