Health · Chapter 16 · Riders
Cost-of-Living Adjustment (COLA) Rider
Definition
Indexes benefits already being paid on a claim to the CPI (adjusted each disability anniversary, often capped ~5%). LTD policies only; kicks in after benefits have been received for a year.
Exam tip
FIO grows COVERAGE before a claim; COLA grows BENEFITS during a claim.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
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