What does the Cost of Living rider do?

• A. Decreases the death benefit over time
• B. Automatically increases the death benefit every year to adjust for inflation, without requiring insurability
• C. Requires evidence of insurability for increases
• D. Is available only on term policies

Answer: (B)

The Cost of Living rider is designed to protect the death benefit from inflation by automatically increasing it each year. These increases happen without you having to prove insurability, meaning no new medical underwriting is required for the added amount. The rider typically raises the death benefit by a set dollar amount or percentage annually, up to a stated cap, and may require premium adjustments to fund the larger benefit. This automatic, inflation-adjusted growth helps preserve purchasing power over time and isn’t restricted to term policies.