rider on a life insurance policy or a disability income policy that adjusts the benefit to reflect fluctuations in the cost of living as measured by the Consumer Price Index.
An option that permits an insurance policy holder to purchase increasing term insurance coverage, to keep up with expected increases in the cost of living. see also rider.
A contract amendment that automatically increases the amount of coverage to compensate for the effects of inflation.
Benefit that can be added to a life insurance policy under which the policyowner can purchase one-year term insurance equal to the percentage change in the consumer price index with no evidence of insurability.
An option that permits the policyholder to purchase increasing term insurance coverage. The death proceeds increase by a stated amount each year to coincide with an estimated increase in the cost of living.
Designed to adjust policy benefits in relation to the change in the economic climate. The majority of such riders are tied to changes in the Consumer Price Index (CPI). The amount of insurance may be automatically increased, without evidence of insurability, at predetermined periods for a maximum amount.