Cost of Living Adjustment Rider for Disability Insurance: Everything to Know

Key Points:

• The cost of living adjustment (COLA) rider is an optional add-on for disability insurance policies.
• The COLA rider adjusts your disability income to keep pace with inflation.
• This policy feature can be expensive and is often the first to be removed when trying to lower premium costs.
• Without the COLA rider, your disability income will stay the same over time and may not be enough to cover rising expenses.
• If you anticipate a long-term disability, it may be important to consider including the COLA rider in your disability insurance policy.

Hot Take:

Physical therapists, like many other professionals, may rely on disability insurance to protect their income in the event of an injury or illness. The cost of living adjustment (COLA) rider can be a valuable addition to a disability insurance policy for physical therapists, as it ensures that their disability income will keep up with inflation. Considering the rising costs of living and healthcare, having a COLA rider can provide an added layer of financial security for physical therapists dealing with the potential long-term effects of a disability.

Reference Article https://www.studentloanplanner.com/disability-insurance-cost-of-living-adjustment-rider/