What type of insurance would typically include 'cost of living adjustments'?

Long-term disability insurance typically includes cost of living adjustments (COLA) to help ensure that the benefits keep pace with inflation over time. This feature is particularly important for disability coverage, as it addresses the financial challenges that may arise if a person becomes unable to work for an extended period. The cost of living adjustments can help safeguard the purchasing power of the benefits received, ensuring that the insured maintains a standard of living despite the effects of inflation on expenses.

In contrast, other types of insurance like homeowners insurance, accidental death insurance, and life insurance generally do not include cost of living adjustments. Homeowners insurance primarily covers property risks and does not account for inflation in payment structures. Accidental death insurance offers a fixed payout upon the death of the policyholder and does not adjust for living costs over time. Life insurance pays out a predetermined benefit upon death, which is also not influenced by inflation adjustments, although some policies may have riders for other kinds of inflation protection. Thus, long-term disability insurance stands out as the type most likely to provide cost of living adjustments to benefit recipients.