What is the function of a rider in an insurance policy?

A rider in an insurance policy serves as an amendment or addition that provides additional benefits or alters certain aspects of the original policy. Specifically, riders are used to add optional provisions that can tailor the insurance coverage to better fit the needs of the policyholder.

For instance, a policyholder might include a rider that adds coverage for critical illness, which is not included in the basic policy. This feature enhances the overall utility of the insurance by allowing customization based on individual circumstances and preferences. Riders can address various needs, such as adding a waiver of premium in case of disability or providing coverage for specific conditions, ensuring that the policy provides adequate protection according to the policyholder's requirements.

The function of a rider does not pertain to denying claims, outlining limitations of the policy, or replacing the original policy document, as these aspects are covered under the terms of the main policy itself. Instead, riders enhance the flexibility and comprehensiveness of the policy, making them a valuable aspect of insurance planning.