"If we're talking about (a death benefit) that's anywhere from 20 to 80 years away, we need to talk about having that death benefit increased (over time)," says Butler.
A $500,000 death benefit may seem enormous today, but 30 years down the road, it will only be worth approximately $200,500 after adjusting for inflation. With inflation increasing approximately 3 percent each year, time alone can severely erode your life insurance policy even if you never miss a payment. While some policies automatically adjust to keep pace with inflation, some companies sell that feature as an additional rider. Before signing onto a policy, Butler advises shoppers to ask their life insurance agent if the policy automatically factors in inflation and allows them to buy more insurance later on if necessary.