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.