What Does Automatic Cost of Living Adjustment Mean?

Free Business Insurance Quote Click Here
What does Automatic Cost of Living Adjustment mean? Read on to discover the definition & meaning of the term Automatic Cost of Living Adjustment - to help you better understand the language used in insurance policies.

Automatic Cost of Living Adjustment

Automatic Cost of Living Adjustment

Automatic cost of living adjustments (COLA) pertain to automatic changes in salaries in correspondence with a change in inflation. In the context of insurance, automatic COLA is a disability insurance rider that allows for an increase of the benefits paid out to a disabled person in response to a decrease in the purchasing power of money over time.

We hope the you have a better understanding of the meaning of Automatic Cost of Living Adjustment.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z


Free Business Insurance Quote Click Here