LIFE INSURANCE RIDER
Inflation Rider
Is this rider a good fit for me? An inflation rider is a good option if:
- You want to ensure the beneficiaries of your accidental death benefit policy are financially protected, regardless of inflation.
- You can manage a small premium increase for a long-term benefit.
What is an inflation rider?
Worried that your insurance policy value might not keep up with inflation over time? There’s a rider for that – the inflation rider is designed to help boost the value of your life insurance policy by 25% by the its sixth year in effect, to better protect your beneficiaries in the event of your death.
These increases in payable death benefits are designed to help defray the effect inflation has on your policy value. Due to inflation, a death benefit may have significantly less purchasing power than it had when originally purchased it. By adding an inflation rider to your Fidelity Life stand-alone accidental death benefit policy, you can increase the accidental death benefit and help your policy maintain its value.
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Quick Answers to Common Questions
What is a life insurance rider?
A rider is supplemental to your life insurance policy. It amends the policy to include optional terms or conditions. Riders may increase premiums, but they can offer additional benefits and expanded coverage.
How does an insurance inflation rider work?
When you add an inflation rider to your policy, you pay only a small amount in additional premiums for an increase in death benefits. Typically, the increase starts in the second year of your policy with an increase in value that is equal to 5% the original worth of the policy. The 5% increase is repeated for four more years, meaning that the final policy worth is increased by a total of 25%. After the final increase, the death benefit remains level for the life of the policy.
Inflation riders are common in the world of long-term care insurance (when you buy a policy as a way to save against the possibility you will need long-term care in your declining years), but is also useful for standard life insurance policyholders. As long as inflation doesn’t mean the cost of things rises more than 25% over the life of your policy, the death benefit will retain its buying power. This can be invaluable if the policy is meant to help pay off a mortgage or fund college for your beneficiaries after your death.
Which Fidelity Life policy can I add an inflation rider to?
An inflation rider can be added to a Fidelity Life standalone accidental death benefit policy.
Do I need a medical exam for an inflation rider?
With a Fidelity Life Accidental Death Benefit rider, you don’t need a medical examination to obtain an inflation rider on our standalone accidental death benefit policy.
Why should I choose Fidelity Life?
Fidelity Life is committed to helping you find the right life insurance. For more than 100 years, we’ve been helping everyday people like you get the life insurance you need and the peace of mind you deserve. Our mission is to work with you throughout your life. Whether just starting out, raising your children, or getting ready to enjoy retirement, we design products with families like yours in mind.
You can feel confident we’ll be there for your loved ones because we carry an A+ rating from the Better Business Bureau as well as an A- rating (Excellent) from A.M. Best Company, the oldest and most widely recognized provider of ratings for the insurance industry.
Our commitment to our customers, and their families, shows up in our innovative products and our top-notch customer service.
How can I get started?
If you want to speak to an agent about attaching a child insurance policy rider to your existing Fidelity Life policy, please call our Customer Service Representatives Monday through Friday at 800.369.3990 from 8 a.m. to 5 p.m. Central Time CT.
If you want to calculate your life insurance coverage needs, you can use our calculator. Then, we’ve made it simple to get your application started online.
