What is a rider in an insurance policy?

A rider in an insurance policy refers to an endorsement that modifies coverage. This means that a rider can add, adjust, or limit benefits of the basic policy, allowing the policyholder to customize their insurance plan according to their specific needs. For example, common riders include accidental death benefits, disability income, or critical illness coverage that enhance the base policy and provide additional financial protection.

This flexibility is valuable for policyholders who want tailored coverage that addresses particular risks or circumstances that may not be fully covered by the original policy. Thus, understanding riders is crucial for both agents and consumers in making informed decisions about the extent of their insurance protection.