What is a rider in life insurance?

In life insurance, a rider is an additional provision that modifies the terms of a standard policy. This can enhance the coverage offered or provide additional benefits, allowing policyholders to customize their insurance to better meet their individual needs. For example, a common rider is the accidental death benefit, which provides an additional payout in the event of death due to an accident. Other types may include critical illness riders or waiver of premium riders, which ensure the policy remains in force during specific situations.

The other options mentioned do not accurately capture the essence of what a rider is. A refund on premium payments refers to a different concept and does not relate to modifying coverage. Similarly, a statutory limit on the death benefit is about regulatory constraints rather than a personalized enhancement of a policy. Lastly, an optional term for workers’ compensation insurance is outside the scope of life insurance and does not pertain to the customization of life insurance policies in the same way as riders do.