What is a 'rider' in insurance terminology?

In insurance terminology, a 'rider' refers to an amendment or addition to a standard insurance policy that alters its coverage. Riders can be used to customize a policy according to specific needs or circumstances, providing additional benefits or altering existing terms of the coverage. For instance, a common type of rider is a critical illness rider that adds coverage for certain serious health conditions to a health insurance policy. This customization allows policyholders to better tailor their insurance products to fit personal needs or risks, enhancing their overall protection.

This understanding of riders helps insured individuals realize that their standard policy can often be adjusted or enhanced by adding these supplementary provisions, which can address specific situations not covered by the base policy. Consequently, managing insurance needs becomes more effective through the strategic use of riders.