Disability & Long-Term CareQuestion 651 of 716
A cost-of-living adjustment (COLA) rider on a disability policy:
a.Waives the premium during disability
b.Gradually shortens the benefit period each year in exchange for a higher initial monthly benefit amount
c.Reduces the monthly benefit over time
d.Increases the monthly benefit during a long claim to keep pace with inflation
Explanation
A COLA rider raises benefits during an extended claim to offset inflation, protecting purchasing power. It does not reduce benefits, shorten the benefit period, or waive premiums.
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Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)