What rider allows an insured to increase monthly benefits under a disability income policy?

The correct answer, which is the Cost of Living Adjustment Rider, is significant because it specifically addresses the potential need for increased monthly benefits in a disability income policy to keep pace with inflation. This rider typically adjusts the benefit amount upward periodically, based on changes in the consumer price index or inflation rates. As a result, it ensures that the purchasing power of the benefits remains relevant over the duration of the disability, providing better financial support to the insured during their time of need.

In contrast, the Guaranteed Insurability Rider allows policyholders to purchase additional coverage without needing to provide evidence of insurability, but it does not directly increase the benefits on an existing policy. The Waiver of Premium Rider enables the policyholder to stop paying premiums during a period of disability but does not adjust the benefit amount itself. The Accidental Death Benefit Rider provides additional coverage in the event of death from an accident, but it also does not pertain to increasing monthly disability benefits. Understanding the specific functions of these riders helps clarify why the Cost of Living Adjustment Rider is the appropriate choice for increasing benefits under a disability income policy.