What is a rider in an insurance policy?

A rider in an insurance policy is an add-on provision that modifies the terms of the base policy. This means it enhances or changes the coverage provided by the main policy, allowing policyholders to tailor their insurance to better meet their individual needs. For example, a policyholder might add a rider for accidental death benefit or a critical illness rider, which would enhance the original terms of the life insurance policy.

Riders can provide additional coverage, extend benefits, or modify exclusions, thereby allowing for greater flexibility. They are often used to address specific concerns or needs that are not covered by the standard policy, making them a valuable tool for personalizing insurance coverage. Understanding how riders work can be critical for policyholders looking to customize their insurance solutions effectively.