What is Rider?
An add-on provision to an insurance policy that changes or extends coverage.
Understanding Rider
Riders (also called endorsements in property insurance) modify your base policy for an additional cost. In life insurance, common riders include waiver of premium (policy continues if you become disabled) and accelerated death benefit (access funds if terminally ill). Riders customize coverage to your specific needs.
Examples
- A child rider on life insurance covers your children under your policy.
- A guaranteed insurability rider lets you increase coverage later without a medical exam.
- Critical illness riders provide lump-sum payments upon diagnosis of specified conditions.
Common Questions About Rider
Are riders worth the extra cost?
Evaluate each rider based on your specific situation. Waiver of premium riders can be valuable if you become disabled. Accelerated death benefit riders are often included free. Calculate the cost versus the potential benefit and likelihood of needing it.
Can I add riders after purchasing a policy?
Sometimes. Some riders can be added later, but you may need to provide updated health information or pay higher rates. Other riders are only available at the time of initial policy purchase. Check with your insurer for options.