What is a "rider" in an insurance policy?

A rider in an insurance policy refers to an endorsement that modifies the coverage benefits outlined in the policy. This can include adding coverage for specific risks, increasing the limits of coverage, or excluding certain situations from coverage. Riders allow policyholders to customize their insurance policies to better meet their individual needs and circumstances.

For example, in a health insurance policy, a rider might be used to provide additional benefits for specific treatments or conditions that are not covered by the standard policy. This customization enables policyholders to tailor their coverage according to their personal situation, ensuring they have the necessary protection in place.

The other options do not accurately reflect the definition of a rider in insurance. An option suggesting a document that cancels coverage does not align with the constructive purpose of a rider, which is to enhance or alter the existing coverage, rather than eliminate it. A premium increase notification is a separate communication related to pricing adjustments and does not modify coverage terms itself. Lastly, a summary of covered services is more of an overview of what a policy includes rather than a modification or endorsement, which is what a rider is specifically designed to do.