Marcus is concerned that inflation will erode the purchasing power of the face value of his life insurance policy.His agent suggested that Marcus add a provision that allows him to purchase one-year term insurance equal to the percentage change in the consumer price index without having to demonstrate insurability.This provision is called a(n)

Question

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The provision that the agent suggested is a cost-of-living rider, which would protect Marcus from the erosion of purchasing power caused by inflation by allowing him to purchase additional one-year term insurance equal to the percentage change in the consumer price index. The other options listed (guaranteed purchase option, accelerated death benefit rider, waiver-of-premium rider) do not address inflation concerns in the same way.

Marcus Is Concerned That Inflation Will Erode the Purchasing Power