Which rider provides for an automatic increase in benefits to offset inflation?

The cost of living adjustment (COLA) rider is specifically designed to enhance insurance benefits in alignment with inflation. This is crucial for policyholders who want their coverage to retain its purchasing power over time as the cost of living rises. The COLA rider automatically increases the benefit amount at predetermined intervals or according to a specified percentage, ensuring that the policy's value does not diminish due to economic factors.

In contrast to this, an annuity rider generally pertains to income aspects that augment the payout schedule and isn't focused on adjusting benefit amounts based on inflation. An additional premium pertains to an increase in the policy cost but does not inherently adjust the benefits for inflation. The waiver of premium rider, while beneficial, primarily deals with maintaining coverage without the need to pay premiums during times of financial hardship, rather than adjusting benefits to counteract inflation. Therefore, the cost of living adjustment rider effectively addresses the need for increasing benefits to keep pace with inflation, making it the correct choice.