InsuranceFinancial Glossary
Rider
Definition
An optional add-on benefit attached to a base insurance policy for an additional premium. Common riders include accidental death benefit, critical illness rider, waiver of premium rider, hospital cash, and personal accident cover. Riders customize your policy to your specific needs.
Why It Matters
Riders can be a cost-effective way to enhance your insurance coverage. A critical illness rider on your term plan costs much less than a standalone critical illness policy. However, the rider's payout is typically limited to the base policy's sum assured. Compare rider costs versus standalone policy costs before deciding.