Definition, Meaning & Synonyms

inflation-rider

noun

ɪnˈfleɪʃən ˈraɪdər

Definition

A provision in an insurance policy that allows for adjustments in coverage or benefits as inflation increases.

Examples

Many homeowners opt for an inflation-rider in their insurance policy to protect against the diminishing value of their coverage over time.
When reviewing our life insurance options, we noticed that the inflation-rider would greatly benefit our family’s future financial security.

Meaning

An inflation rider helps ensure that the coverage amount for an insurance policy keeps pace with inflation, providing adequate protection against rising costs over time.