INDEXED COST OF LIVING BENEFIT RIDER Clause Samples

The Indexed Cost of Living Benefit Rider is an insurance policy provision that automatically increases the policy's benefit amount in line with changes in a recognized cost of living index, such as the Consumer Price Index (CPI). This rider typically applies to life or disability insurance policies, adjusting the payout over time to help offset the effects of inflation. By linking benefit increases to an external economic indicator, the rider ensures that the policyholder's coverage maintains its real value, addressing the problem of eroding purchasing power due to rising living costs.