Disability Insurance Riders
What is a disability insurance cost of living adjustment rider?
A cost of living adjustment (COLA) rider increases your disability benefit each year to keep pace with inflation. Common COLA rates are 3% per year or tied to the Consumer Price Index (CPI). A COLA rider is especially important for long-term disabilities that could last many years.
Key Points
- COLA rider: increases disability benefit each year to keep pace with inflation
- Common COLA rates: 3% per year or tied to CPI
- Especially important for long-term disabilities
- Higher premium than policies without COLA rider
- An independent agent can help you evaluate COLA riders