Final answer:
A cash-value life insurance rider helps protect against income depletion during retirement by building a safety net that can supplement income in the face of fixed pensions and inflation.
Step-by-step explanation:
The life insurance rider that protects against the chance of depleting income during a prolonged life is called a cash-value rider. Cash-value whole life insurance policies have a death benefit and build a separate cash value over time. This accumulated cash can act as a safety net for policyholders, offering financial resources that can supplement income in retirement or other financial needs. Such riders help address the problem faced by retirees receiving fixed pensions, known as "defined benefits" plans, where their fixed income does not increase over time leading to a loss of buying power due to inflation. This is crucial since, even with low inflation rates, losing just 1% to 2% of purchasing power each year compounds over decades, resulting in substantial financial strain during retirement.