Automatic Increase Benefit Rider

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rhodnius
Posts: 37
Joined: Sat May 30, 2015 5:07 pm

Automatic Increase Benefit Rider

Post by rhodnius » Thu Apr 20, 2017 2:04 pm

Hello fellow Bogleheads!

I have an individual disability insurance with MetLife and through my work (group long term disability which pays 60% of monthly earnings.Not to exceed $15,000/month). I received a mail from MetLife about my Automatic Increase Benefit Rider which will increase my monthly benefit by $380 and the premium will increase by $116. Last year I refused my option for the automatic increase. I know that if I refused it twice in a row, the benefit will no longer be available to me. What are your thoughts on accepting the automatic increase every year vs every other year vs refusing it at all? What do you guys do? Below are the details of the current policy if it helps. Thanks! :happy

Issue Age/sex: 33/M
Monthly benefit: 7500
reg occ period: to age 65
accum period 180 days
elim period 90 days
max benefit period: to age 65

Benefit provisions:
Monthly benefit for total
monthly benefit for residual
COLA with benefit purchase option
presumptive guaranteed insurability benefit
max total increase $9500. unit of increase $1000
renewable automatic increase benefit
capital sum benefit

itstoomuch
Posts: 4564
Joined: Mon Dec 15, 2014 12:17 pm
Location: midValley OR

Re: Automatic Increase Benefit Rider

Post by itstoomuch » Fri Apr 21, 2017 10:41 am

I'd listen to spouse. :oops:
YmarriageMV :annoyed
Rev90517; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax 25%. Early SS. FundRatio (FR) >1.1 67/70yo

LeeMKE
Posts: 1582
Joined: Mon Oct 14, 2013 9:40 pm

Re: Automatic Increase Benefit Rider

Post by LeeMKE » Mon Apr 24, 2017 12:00 am

As long as your income is increasing, I'd take the increases in coverage and premium.

Look forward to the day that you give up disability coverage because your portfolio is strong enough to cover you instead!
The mightiest Oak is just a nut who stayed the course.

rhodnius
Posts: 37
Joined: Sat May 30, 2015 5:07 pm

Re: Automatic Increase Benefit Rider

Post by rhodnius » Mon Apr 24, 2017 12:11 am

LeeMKE wrote:As long as your income is increasing, I'd take the increases in coverage and premium.

Look forward to the day that you give up disability coverage because your portfolio is strong enough to cover you instead!


Hi LeeMKE! Thanks for the reply. I appreciate it.I will opt-in the automatic increase benefit rider =) More power to you!

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