Definition
Rider
A rider is an optional add-on to an insurance policy that provides extra coverage for a small additional premium.
A rider enhances a base insurance policy with specific extra protection for a modest premium. Common life-insurance riders include critical illness, accidental death, disability, and waiver of premium (which pays your future premiums if you become disabled). Health policies offer riders too.
Riders are cost-effective because adding them to an existing policy is usually cheaper than buying separate standalone cover. They let you tailor a policy to your needs without overpaying for features you do not want.
Read each rider's terms, exclusions and claim conditions carefully — a critical illness rider, for example, pays out only for listed illnesses meeting defined severity criteria.
Related terms
- Critical Illness CoverCritical illness cover pays a lump sum on first diagnosis of a listed serious illness such as cancer, heart attack or stroke, regardless of treatment cost.
- Personal Accident CoverPersonal accident (PA) cover pays fixed benefits for death or disablement caused by an accident, on a benefit (non-indemnity) basis.
- Term InsuranceTerm insurance is pure life cover that pays your family a large sum if you die during the policy term, in exchange for a low premium.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.