What is a "rider" in an insurance policy?

A "rider" in an insurance policy refers to an additional provision or benefit that modifies the coverage of a standard policy. Riders allow policyholders to customize their insurance coverage to better meet their specific needs or to provide additional benefits that are not included in the base policy. For example, a common rider is a waiver of premium rider, which ensures that premiums are waived if the policyholder becomes disabled.

This flexibility offered by riders is important because it allows individuals to tailor their insurance plans based on changing circumstances or unique situations in their lives, such as adding coverage for critical illness, accidental death, or other specialized needs. Thus, the definition highlights how riders enhance the base coverage and create a more personalized insurance experience for the policyholder.