In this Physician Edition episode, Scott and I discuss how the “COLA” Cost of Living Adjustment Rider works so you can decide whether or not you would prefer this on your contract.
We are specifically focusing on Own Occupation/Specialty disability insurance contracts here when we discuss the need for the value per person. *Other financial products may require a different viewpoint.*
Not all COLA riders are made the same.
-Some are 3% simple interest (Ameritas and OhioNational have this)
-Some are 3% compounding interest (Guardian, MassMutual and Standard have this)
-Some are 6% compounding interest (some let you select this if you want to)
-Some are floating 0-3% compounding interest (Principal is compounding but floats)
-Some are 0-6% or 2-6% compounding interest (Ameritas and OhioNational have this version)
