Which rider is designed to adjust the insurance benefit to keep pace with inflation?

The Cost of Living Rider is specifically designed to ensure that the insurance benefit of a policy gradually increases over time to keep pace with inflation. This is crucial because, as inflation occurs, the purchasing power of a fixed life insurance benefit can diminish significantly over the years. With this rider, the coverage amount is adjusted based on changes in a recognized inflation index, often the Consumer Price Index (CPI), allowing the beneficiaries to receive a benefit that better reflects the current economic conditions and retains its value at the time of a claim.

In contrast, the Waiver of Premium Rider allows the policyholder to stop paying premiums if they become disabled, without losing coverage. The Automatic Premium Loan Rider helps prevent a policy from lapsing due to unpaid premiums by borrowing against the cash value of the policy. The Accidental Death Benefit Rider provides an additional benefit in the event of death due to an accident. These options focus on different aspects of insurance coverage and do not directly address the need to maintain the value of the benefit over time in relation to inflation.