Question

What rider can decrease the death benefit when utilized?

Option 1: Accelerated Death Benefit Rider
Option 2: Accidental Death Benefit Rider
Option 3: Guaranteed Insurability Rider
Option 4: Cost of Living Rider

Answer 1

The Cost of Living Rider can decrease the death benefit when utilized in a life insurance policy.

Step-by-step explanation:

The rider that can decrease the death benefit when utilized is the Cost of Living Rider.

A Cost of Living Rider is an optional addition to a life insurance policy that provides for an increase in the death benefit over time, to help keep up with inflation. The rider is typically linked to an inflation index, such as the Consumer Price Index (CPI), and the death benefit is adjusted periodically based on changes in the index. While the rider helps to protect the value of the death benefit against inflation, it does come with an additional cost, and the increased death benefit may reduce the amount available for other expenses, such as cash value growth or premium payments.

In contrast, the other riders mentioned - the Accelerated Death Benefit Rider, the Accidental Death Benefit Rider, and the Guaranteed Insurability Rider - do not typically decrease the death benefit when utilized.

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