Illinois Accident and Health Insurance Practice Exam 2026 - Free Practice Questions and Study Guide

The benefits under the Cost of Living Rider are adjusted periodically based on the consumer price index (CPI). This rider is designed to help maintain the purchasing power of benefits over time by ensuring that they keep pace with inflation. The CPI is a widely used measure that tracks changes in the price level of a basket of consumer goods and services, reflecting the cost of living. By linking adjustments to the CPI, the insurance policy aims to protect policyholders from the negative effects of inflation, ensuring that benefits continue to provide value as the cost of living increases. The periodicity of these adjustments ensures that they are made at regular intervals, rather than at fixed terms like annually or every few years, which might not align as effectively with changing economic conditions.