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


PolicyGenius Admin

PolicyGenius Admin

Blog author PolicyGenius Admin

Published April 22, 2015

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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.