What Is Rider? Definition | Epic Life Glossary

Why it matters

Riders let buyers tailor coverage, such as adding waiver of premium or a chronic illness benefit. Some are free, such as certain accelerated death benefits, while others raise the premium. Availability, cost, and terms differ by carrier and state. Not every rider is worth buying, so compare the cost with the likelihood of needing it. Read the rider wording, since it states when the benefit is paid and what is excluded. Ask whether a rider can be removed later.

Source: naic.org

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Related terms

Waiver of Premium Rider: A waiver of premium rider is an add-on that stops premium payments on a life insurance policy if the insured becomes disabled or has a covered illness, while the coverage stays in force.
Accelerated Death Benefit Rider: An accelerated death benefit rider lets the insured receive part of the death benefit while alive if diagnosed with a qualifying condition, such as a terminal illness. It is also called a living benefit.
Guaranteed Insurability Rider: A guaranteed insurability rider is an add-on that lets the policy owner buy more coverage at certain ages or life events, such as marriage or the birth of a child, without a new medical exam.
Child Term Rider: A child term rider adds term life coverage on the insured's children under a parent's policy. Coverage is usually a small amount and covers all eligible children for one extra premium.
Income Rider: An income rider is an optional annuity feature that guarantees a stream of lifetime income, often based on an income base that grows at a stated rate. It usually costs an annual fee.

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Where we use this term

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