Year-by-Year Step-Ups

Year-by-year step-ups describe a benefit structure where maximum coverage amounts increase the longer you stay enrolled in the plan. This feature rewards loyalty and encourages continuous membership.

For example, a plan may pay up to $250 for vision care in the first year, $300 in the second year, and $400 in the third year and beyond. Step-ups are common in extended health and dental benefits, particularly for paramedical and dental categories.

Example:

If your plan’s step-up schedule for paramedical coverage is $300 in year one, $400 in year two, and $500 in year three, your maximum increases automatically each renewal year.

What to Watch For:

Step-ups usually reset if coverage lapses or is canceled. Maintain continuous enrollment to keep higher benefit levels active.