In terms of life insurance policies, what is a "rider"?

A rider in life insurance terms refers to an additional coverage that can be attached to a standard policy, generally for an extra fee. This allows policyholders to customize their insurance coverage to suit specific needs or situations. For example, a rider could provide benefits like critical illness coverage, accidental death and dismemberment benefits, or an additional payout in the event of certain circumstances.

This flexible aspect of riders enables individuals to enhance their basic policy to provide broader protection based on their unique risks or health conditions. Many insurers offer riders that cater to various needs, making the life insurance policy more comprehensive. Thus, riders play an essential role in tailoring insurance solutions for individuals and families.