Gain peace of mind knowing that your benefits are protected, even as the value of your policy changes over time.
How Does Inflation Rider Life Insurance Work?
Everyone’s life insurance needs are unique. That’s why many providers offer life insurance riders, which are optional features you can add to your policy to help you customize your coverage.
Inflation riders are designed to adjust the dollar amount of your coverage to keep up with rising costs, such as medical care. Generally, your death benefit will increase by a fixed percentage every year to address inflation and rising expenses. Increased coverage does mean a higher premium, but you can end up saving thousands of dollars on future care and end-of-life costs.
You can add these riders to current life insurance plans, such as term life or long-term care (LTC) policies. The types of inflation riders available will vary, depending on your provider, but here are a few options you may have:
- Guaranteed purchase option (GPO): You can buy the option to increase the amount of your coverage every two or three years for your term care insurance or term life plan, without having to get approved multiple times.
- Simple inflation protection: This rider increases your death benefit automatically every year by a percentage you choose with your insurer, usually 3-5%.
- Compound inflation protection: Like simple inflation protection, your coverage amount would increase by a percentage each year. The difference is that instead of a flat rate, your benefit goes up with compound interest, rather than rising by a flat amount each year.
Benefits of Inflation Rider Life Insurance
Adding inflation protection is an easy and convenient option for many policyholders. With this rider, you get:
Peace of mind
Peace of mind
Inflation Riders through eFinancial
If you want a backup plan to guard your insurance payout against inflation, eFinancial is here to help. We offer inflation rider life insurance products from top insurance companies, as well as expert, personalized guidance from our team of agents.
At eFinancial, we’re committed to you and your family’s financial security, each step of the way.
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Get Inflation Rider Quotes From eFinancial
Want to learn more? Start your free, no-obligation online quote or call 866-388-3996800-957-9525 to talk with one of our agents.