Glossary
Rider, defined
An add-on to a life, health or disability contract that changes its benefits, usually for an extra charge. It is the life-insurance counterpart of an endorsement on a property policy: the base contract stays the same and the attachment modifies it.
In practice
Common riders on a life policy let you buy more coverage later without a new medical exam, waive the premium if you become disabled, or draw part of the death benefit early after a terminal diagnosis. Some are included at no charge; others are priced separately and show on the policy schedule.
A rider can be dropped later, but one that was declined at issue often cannot be added without fresh underwriting.
A worked example
Suppose a parent buys a term life policy with a hypothetical $250,000 death benefit and adds a waiver of premium rider. Three years in, an illness leaves the parent unable to work for a long stretch. The rider pays the policy's premiums during the disability, so the $250,000 of coverage stays in force without any payment from the household. Without the rider, a missed premium beyond the grace period would have ended the policy.
Applies to: Life InsuranceTerm Life Insurance