DI Increase

Options & Guidelines


Future Increase Option (FIO)


Benefit Update (BU)


Guaranteed Increase Option (GIO)


Frequency:  offered how often?

Annual option on policy anniversary date.  Not mandatory to apply.  Can apply 30 days before through 30 days after the policy anniversary.

Every 3 years, assuming the client completes the mandatory application process.  Client is notified 90 days prior to the policy anniversary. 


If the client fails to complete the process as outlined, the rider will be removed.  Upon approval, client must accept a minimum of 50% of the offered increase to retain the rider.  

Annual option on policy anniversary date.  Not mandatory to apply.  Can apply 60 days before thru 60 days after the policy anniversary. 


Once approved, the increase in coverage is dated to match the base contract.  Depending on the timing, back premiums maybe be required. 


New policy issued or original policy adjusted?

New, additional policy is issued.  Policy fee waived.

Adjustment to original policy.  Client is sent a letter of confirmation along with new data pages.

Adjustment to the original policy & new policy face pages are issued.  Exception:  new policy issued if producer is not original agent.


Off-Anniversary or Advance Option Eligibility Criteria

Client must be age 45 or less (or the policy must be within its first 3 years of issue) and request must be made within 90 days of the qualifying event.


Exception = the rule above is waived if the client has graduated from a medical residency/fellowship program within the past 2 years.


Qualifying event = loss of group LTD or documentable increase in income of 20%+




Must apply within 90 days of qualifying event.

Exception = if the client is a physician within their first 2 years post-graduation, the 90 days rule is waived. 

Qualifying event = loss of group LTD or documentable increase in income of:

·         20+% in states where the Enhanced BU rider is approved (State Approval Grid) OR

·         50+% in non-approved states with the former BU wording  

NOTE: once an Advance BU is started, it must be finished within 30 days or the rider will be removed.  Once approved, client must accept at least 50% of the approved amount – just like with any other BU


None – no provision for off-anniversary increases


Exception = medical residents/fellows who apply within 90 days following the completion of their program. 


NOTE: Policy must be on monthly mode to process an off-anniversary increase. 


Quotes, how obtained?

Which state rates to use? 

No quote needed - annual letter quotes a per $100 cost.  Off anniversary quotes can be run with the normal software; use original state of issue. 

No quote, as process is mandatory.  Premium options are provided as part of the BU offer.  Advance BU quotes must be run by Principal - email DIPolicySupport@principal.com for a quote.  Rates are based off a blend of the original state of issue (in-force portion) and current state of residence (increased portion).

GIO quotes cannot be run in the field.  Agent can email DIMail@metlife.com for any GIO premium requests, apps or questions. Rates are based off original state of issue.


Max increase allowed?

Full pool available to age 45, regardless of age of contract.  Starting at age 46, increase is limited to half the base benefit.  ANY applicant age 46+ = half the base benefit, no exceptions.

Up to full I&P

$1000/option, or full pool up to age 40.  Policy does not list entire pool amount because after age 40 GIO pool starts to reduce by each $1000 not taken.  Can look back 1 year to get $2k, but if it had been 5 years, the other $3k would be gone. 


Apps:  getting them &

which state to use

Ameritas Apps      Original state of issue

Principal Apps      Current state of residence

MetLife Apps       Original state of issue


Licensing, which state does the agent need to be appointed in?

Original state of issue

Agent needs to be licensed in the state that the BU app was signed in, which normally is the client's current state of residence. 


If the app state differs from the client's state of residence, a logical reason will need to exist.  The agent not being licensed is not an acceptable reason. 

Original state of issue



NorthCentral DI  |  952.898.7160  |  info@northcentraldi.com  |  NorthCentralDI.com

Last revision:  9/3/2019