Insurance Rider
Also known as: Add-on Cover, Supplementary Benefit
Additional benefits that can be attached to a base life insurance policy for extra protection.
Detailed Explanation
Insurance riders are supplementary covers that can be added to a basic life insurance policy to enhance protection. Common riders include accidental death, critical illness, waiver of premium, and disability benefits. Riders increase the premium but provide targeted coverage for specific risks.
Related Terms
Term Insurance
Pure life insurance providing high coverage at low cost with no investment component.
Accidental Death Rider
Additional insurance benefit providing extra payout if death occurs due to accident.
Critical Illness Rider
Insurance add-on providing lump sum payment upon diagnosis of specified critical illnesses.
Waiver of Premium
Insurance benefit that waives future premium payments upon disability or critical illness.