COLA is
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Insurance Act dealing with Adjustment benefits
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provides for periodic increases in disability income amount corresponding to increase in Cost of Living
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a consumer price index used for calculating the Inflation cost for insurance claims
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Its a mental health parity act
Reveal answer
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B
Correct answer
Explanation
COLA (Cost-of-Living Adjustment) provisions in disability income policies periodically increase benefit amounts to keep pace with inflation, preserving purchasing power during long disability claims. Without COLA, fixed disability payments would erode in real value over extended periods. This rider is particularly valuable for younger disabled workers.