To obtain an increasing death benefit to protect against inflation, which option should be selected?

• A. Increasing Term Rider
• B. Paid-Up Additions
• C. Level Death Benefit
• D. Decreasing

Answer: (B)

To grow the death benefit over time to help keep up with inflation, Paid-Up Additions are the best option. A Paid-Up Additions rider lets you purchase additional, fully paid-up life insurance that is added to the policy. This increases the death benefit and also builds cash value, so the total death benefit rises as these additions accumulate. That increasing, cash-valued growth provides ongoing protection against inflation.

Other options don’t provide the same combination. An Increasing Term Rider boosts the death benefit but typically for a limited term and without added cash value. A Level Death Benefit stays flat and does not increase with time, failing to counteract inflation. A Decreasing option reduces the death benefit over time, which clearly wouldn’t protect against inflation.