---
title: Benefit Increase Options
description: Benefit Increase Options are also known as automatic benefit increase option, automatic increase benefit, and cost of living adjustment benefit.
---

[Personalized Employee Benefits Resources | PeopleKeep ](https://www.peoplekeep.com/blog)

# [Benefit Increase Options](https://www.peoplekeep.com/blog/bid/260732/benefit-increase-options)

 Written by [PeopleKeep Team](https://www.peoplekeep.com/blog/author/peoplekeep) | January 21, 2013 at 12:08 AM

Also known as automatic benefit increase option, automatic increase benefit, and cost of living adjustment benefit. These are optional benefits that provide for annual increases in the benefit amount to offset the effects of inflation. Benefit increase options are paid for at the time of issue and either increases the daily policy benefits by a 5% compounded or simple interest factor. A key element to remember is that the increases begin at the second policy anniversary and continue for the duration of the policy, except where the insurance carrier "caps" the increase at some predetermined amount. These increase options are not to be mistaken with future insurability options.

[View full post](https://www.peoplekeep.com/blog/bid/260732/benefit-increase-options)

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