Marcus Is Concerned That Inflation Will Erode the Purchasing Power

question 35

Multiple Choice

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)

• A)cost-of-living rider.
• B)guaranteed purchase option.
• C)accelerated death benefit rider.
• D)waiver-of-premium rider.