Pennsylvania Life and Health Insurance Exam Practice Question
Which rider allows the policyowner to increase the face amount to adjust for inflation?
Correct Answer: B
Rationale: Option B, the Cost of Living rider, specifically allows policyowners to increase the face amount of their policy to keep pace with inflation, ensuring that the coverage remains adequate over time.
Option A, Waiver of Premium, provides relief from premium payments if the policyowner becomes disabled but does not affect the face amount.
Option C, Guaranteed Insurability, allows for additional coverage to be purchased at specified times without proof of insurability, but it does not automatically adjust for inflation.
Option D, Accidental Death, enhances the benefit in the event of accidental death, but it also does not address inflation adjustments.
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