What is a "rider" in a life insurance policy?

In the context of a life insurance policy, a "rider" refers to an additional provision that modifies the terms of the policy. Riders are often included to customize coverage according to the policyholder's needs. For instance, a critical illness rider might provide a payout upon diagnosis of a specified serious illness, while an accidental death rider could increase the death benefit if the insured dies from an accident.

Riders are useful tools that enhance the flexibility and responsiveness of life insurance policies, allowing policyholders to tailor their insurance coverage to better suit their individual circumstances and preferences. By being able to modify coverage in this manner, policyholders can address unique risks or needs that standard policy coverage might not fully encompass.