Dynamic premiums is an optional arrangement for the scheduled increase of the coverage before becoming occupationally disabled (an insured event). If opted in, your premiums will increase automatically each year by 3% of the premium paid in the previous year. If your premiums increase automatically, the coverage will also increase.
How does it work?
Premiums and coverage will increase for the first time one year (12 months) after the start of the insurance. From that point, the premiums and coverage will increase once a year. Before each increase, we will notify you in advance of the new premium amount and the expanded coverage that will apply
We do not check the health of the person insured before we increase coverage. We calculate the new, increased coverage based on the principles set forth in the section below. We use the actuarial bases* for automatic increases that are current at the time of the increase.
We calculate the new coverage using the following bases:
The interest rate we use to calculate future coverage,
Our assumptions as to the extent to which occupational disability or long-term care will occur in certain occupations and at certain ages
Our expense assumptions,
The age of the person insured on the date of the increase; and
The conditions on which we have based our contract.
How do I opt in?
Within your application you will be asked whether or not you would like to include dynamic premiums within your policy. Simply select 'Yes' if you wish to include them. Opting in for dynamic premiums can only be done during the initial application and cannot be added later on.
How do I opt out?
You may rescind an automatic increase by doing the following:
You object to the automatic increase by the end of the first month after the increase date; or
You do not pay the first increased premium within two months after the increase date.
If you object to an automatic increase, we will not increase your premiums retroactively. We will increase your premiums normally again the following year. You can object to the increases each time. However, if you object to an increase more than twice in a row, the automatic increase will end for the future.
*An actuarial adjustment is a revision companies make to their pension plan reserves, insurance premiums, or benefit payments in response to changes in actuarial assumptions. Actuarial assumptions may include the retirement age of an employee, or a shift in life expectancy data.
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