Citi Benefits Handbook
Choosing Inflation Protection: Automatic Benefit Increase (ABI) or Future Purchase Option
You also had the option of including the ABI inflation protection provision at enrollment for an additional cost. If you did not elect this option, the future purchase option provision will be included in your coverage.
Under the ABI option, increases to your benefit amounts occur automatically each year. Each January 1, the daily maximum benefit (DMB) amount will be increased at an annual rate of 5% compounded. The lifetime maximum benefit (LMB) will be increased in proportion to the increase in the nursing home DMB. The benefit increase will continue to be made annually regardless of your age or whether you have met the benefit eligibility requirements under the policy. However, no future increases in benefit amount will apply if you stop paying premiums and continue coverage in effect on a reduced paid-up basis under the non-forfeiture benefit.
Under the future purchase option, you will be offered additional amounts of coverage every three years to keep up with inflation. The amount of each adjustment will reflect an increase to the DMB of at least 5% compounded annually for the applicable period.
The premium rates for the inflation increase will be based on your issue age on the effective date of the increase and will include an additional charge to account for the added risk associated with accepting these offers.
The LMB will be increased in proportion to the increase in the nursing home DMB. An inflation adjustment will not be available if you are issue-age 85 or older or if you have met the benefit eligibility requirements under the policy in the six months prior to the increase effective date or if your coverage is in reduced paid-up status. (If you are a resident of Connecticut, Delaware, Indiana or Kansas, this provision varies slightly. Call John Hancock at 1 (800) 222-6814 for details.)