What is meant by ‘riders’ in a life insurance plan?

What is meant by ‘riders’ in a life insurance plan?

In a life insurance policy, a rider is an optional feature that can be added to the policy for an additional cost. Riders provide additional coverage or benefits beyond the basic policy. For example, a policy might have a rider that provides additional coverage in the event of accidental death, or a rider that covers long-term care expenses.

Some common types of riders include:

1. Accidental death benefit rider: This provides additional coverage in the event that the policyholder dies as a result of an accident.
2. Waiver of premium rider: This waives the policyholder's premium payments in the event that they become disabled and are unable to work.
3. Long-term care rider: This provides coverage for long-term care expenses, such as nursing home or home health care.
4. Children's term rider: This provides coverage for the policyholder's children, typically until they reach a certain age.
5. Spouse rider: This provides coverage for the policyholder's spouse.

Riders can be a useful way to tailor a life insurance policy to meet the specific needs of the policyholder. It's important to carefully consider the types of riders that are available and whether they make sense for your situation before purchasing a policy.