Is the Cost of Living Adjustment (COLA) rider worth the additional premium on your disability insurance policy?
In this video, Scott Nelson-Archer, co-owner of MD Disability Quotes, explains how the COLA rider works, when it begins increasing your monthly disability benefit, and why it may not always provide the best value for physicians.
The COLA rider is designed to help protect your disability benefits from inflation during a long-term disability claim by increasing your monthly benefit based on the Consumer Price Index (CPI-U).
However, Scott discusses an important financial tradeoff: would you be better off using that same premium to purchase a larger monthly benefit from day one?
Understanding how long a disability claim would typically need to last before the COLA rider provides greater value can help physicians make more informed disability insurance decisions.
What You Will Learn:
• What the Cost of Living Adjustment (COLA) rider is
• How COLA benefits are calculated using the CPI-U
• When COLA benefit increases begin during a disability claim
• Why inflation protection matters for long-term disability
• The financial tradeoff between buying a COLA rider versus purchasing more monthly benefit
• Why claim duration is an important consideration when evaluating COLA
• Key factors physicians should consider when selecting disability insurance riders
Chapters:
0:00 Introduction to the COLA Rider
0:05 What Is a Cost of Living Adjustment (COLA)?
0:21 How the COLA Rider Increases Benefits During a Claim
0:38 Buying More Coverage vs. Purchasing the COLA Rider
0:56 Why Claim Duration Matters When Evaluating COLA
1:08 Final Thoughts and Contact Information
For more information about disability insurance head over to: https://mddisabilityquotes.com
If you are interested in getting a quote you can do that here: https://mddisabilityquotes.com/get-a-…
