What does a rider in an insurance policy refer to?

A rider in an insurance policy refers to an additional coverage option that enhances or modifies the standard benefits of the policy. Riders are used to tailor an insurance policy to meet specific needs that are not covered by the base policy. For instance, in a life insurance policy, a rider could provide additional benefits such as accidental death coverage or long-term care riders, which would offer financial support if the policyholder becomes chronically ill.

This flexibility allows policyholders to customize their insurance protection, ensuring they have the coverage that best suits their life circumstances or financial goals. The ability to add riders is a key reason why many individuals choose comprehensive insurance policies over basic ones.