What is a Rider?
A rider, in the context of insurance, is an optional add-on to a standard insurance policy that provides additional benefits, extends coverage, or modifies the terms of the policy to better suit the policyholder’s needs. Riders are often used to customize life insurance policies by adding specific benefits that address unique situations or risks not covered by the base policy.
In term life insurance, riders can include options such as accidental death benefits, waiver of premium, or accelerated death benefits. For example, an accidental death benefit rider provides an additional payout if the insured dies due to an accident, while a waiver of premium rider allows the insured to maintain coverage without paying premiums if they become disabled and unable to work.
Riders can also be added to final expense insurance, allowing for customization that addresses specific needs associated with end-of-life expenses. These could include options like a funeral expense rider, which provides funds directly for burial costs, or a family income rider, which ensures a regular income for surviving family members after the insured’s death.
While riders generally increase the policy premium, they can offer peace of mind by providing tailored coverage that meets specific life and financial goals. Policyholders should carefully consider the costs and benefits of adding riders to ensure they align with their financial needs and personal circumstances.