LTD - Cost of Living Increase

My LTD policy states:
“After benefits have been payable for 3 years and with each subsequent anniversary of the commencement of disability payments, you are eligible for a cost of living adjustment in your disability benefit.”

Does this mean the COA increase would for example kick in after 3 full years on LTD, so the start of the 4th year on LTD and then is seems like there will be a COA increase after year after? If it started LTD in May 2020, when would I receive my first COA increase? My COA maximum increase is 3 percent a year?

I know I could ask my case manager but I try to avoid communication with him anyways so hoping somebody would provide me answer.

Thank you.

I would interpret this as you would you get your increase starting on the May 2024 payment.

I would interpret “and with” to mean the increased payments will start on your third anniversary and increase again each year after that. Otherwise that would be a very clunky way to say starting on the fourth anniversary.

Not up to me though. :blush:

Yeah agree, I reread it (slowly this time)…and changed my mind. It’s likely means you’ll get your increase on your 3rd anniversary and everysubsequent anniversary after that.

It’ll say in your policy.
Mine is 2% or less.

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May 2020 to April 2021 = 1 year
May 2021 to April 2022 = 2 years
May 2022 to April 2023 = 3 years

My interpretation would be that the first COLA will be effective May 2023 payment, and each May thereafter.

3% COLA, lucky you! I have zero COLA.

I appreciate your breakdown and the previous replies as well. I guess all group policies are quite different in terms of COLA.

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The “basket of goods” they use to calculate the COL is stupid IMO.
3 out of 5 COLA was under 2% the last five years.
I except the next many years will be over 2%.

This could also be read as “after you have received 3 years of payments”. So in a situation like this it will kick once the person has been paid for 3 years. I can’t say for sure in your situation without seeing the full context of the policy, but that is what it looks like based on the clause you quoted.

David Brannen

Disability Lawyer with Resolute Legal

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