When does the COLA Rider typically start adjusting benefits?

The Cost of Living Adjustment (COLA) Rider is designed to increase the benefits of a disability policy over time, often to keep up with inflation and ensure that the purchasing power of the benefit amount does not diminish. This rider typically kicks in after a set period of time to allow for stabilization after the initial period of disability, which is why the adjustment usually starts after the first year of disability.

Before the first year, the primary focus is on addressing immediate needs resulting from the disabling event. After this period, the adjustment can provide added financial support as costs of living increase, ensuring that the insured's benefits remain relevant and effective over the long term. In general, timing these increases prevents fluctuations in benefit amounts during the critical early stages of a disability when immediate support is essential.