Which disability policy provision would address any concerns of the value of the benefits decreasing over time?

• A. Guaranteed issue
• B. Noncancelable provision
• C. Cost of living benefit
• D. Waiver of premium

Answer: (C)

The concept here is preserving the purchasing power of disability benefits as prices rise. A cost of living benefit automatically increases the monthly disability benefit over time, often tied to inflation (like the CPI), so the real value of the payout doesn’t erode. This rider helps ensure you can still cover expenses as costs go up, sometimes with caps or thresholds and may require ongoing disability to trigger increases.

Other provisions don’t address this inflation-adjustment idea. Guaranteed issue focuses on underwriting and eligibility, not benefit growth. A noncancelable provision protects renewals and fixed premiums, not the amount paid out. Waiver of premium stops premium payments during disability but doesn’t change the benefit amount itself.