What Is a Rider?

A rider is an insurance policy provision that adds benefits to or amends the terms of a basic insurance policy. Riders provide insured parties with additional coverage options, or they may even restrict or limit coverage. There is an additional cost if a party decides to purchase a rider. Most are low in cost because they involve minimal underwriting. A rider is also referred to as an insurance endorsement. It can be added to policies that cover life, homes, autos, and rental units.

KEY TAKEAWAYS

• A rider is an insurance policy provision that adds benefits to or amends the terms of a basic insurance policy to provide additional coverage.
• Riders tailor insurance coverage to meet the needs of the policyholder.
• Riders come at an extra cost—on top of the premiums an insured party pays.
• Riders come in various forms, including long-term care, term conversion, waiver of premiums, and exclusionary riders.
• In some cases, a policyholder may not be able to add a rider after the policy has been initiated.

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