What feature of a life insurance policy allows the death benefit to increase in relation to the cost of living index?

The feature that enables the death benefit of a life insurance policy to increase in accordance with the cost of living index is known as the cost of living rider. This rider essentially adjusts the death benefit over time, reflecting changes in inflation or increases in the cost of living. By linking the benefit to a specified index, policyholders can ensure that their coverage maintains its purchasing power, providing greater financial security for their beneficiaries in the future.

This rider is particularly valuable in environments where inflation is a concern, as it addresses the reality that the initial death benefit amount may not hold the same value years down the line. Other options like term riders and payor benefits serve different purposes and do not adjust the death benefit based on cost of living adjustments. Therefore, the cost of living rider distinctly associates the policy's death benefit with inflation, making it a relevant and essential feature for maintaining adequate financial protection over time.