What is a cost of living adjustment (COLA) rider?

Some long-term disability policies allow you to buy a cost-of-living-adjustment (COLA) to add to your basic coverage. This feature increases the benefit by a certain percentage each year. For example, if you become disabled and are unable to work, the COLA will gradually raise your benefits to match expense inflation during your benefit period.

Get essential money news & money moves with the Easy Money newsletter.

Free in your inbox each Friday.

Sign up now