What is the purpose of an insurance rider?

An insurance rider is a provision that modifies the coverage of an insurance policy, allowing the insured to add specific benefits or coverage that is not included in the standard policy. This addition can enhance the existing coverage by tailoring it to meet the unique needs of the policyholder. For example, a rider may provide additional coverage for critical illnesses, accidental death benefits, or even higher limits on certain types of claims.

Riders are particularly common in life insurance and health insurance policies, where individuals may seek customized benefits that reflect their personal circumstances or health concerns. By incorporating a rider, policyholders can ensure they have the necessary protections in place that align with their health and financial goals.

In contrast, the options related to denying coverage, reducing premium costs, or limiting coverage duration do not accurately describe the primary function of a rider, which is fundamentally about enhancing and customizing coverage rather than restricting or limiting it.