A rider is an extra policy feature that is not included with the base policy but is available at extra cost. Many people just want the base coverage and don't want to pay extra premiums for more bells and whistles. But others are looking for specific features. Since riders are optional, it works better for everyone.
A life insurance rider works just like any contract rider. It is an extension to the contract that stipulates an additional obligation by one or both of the parties to the contract.
Specifically to life insurance, this would be any benefit made available by the life insurer that is optional to the policy owner to select that is not part of the base policy features.
Life insurance riders add extra features to life insurance policies, usually for an extra charge. Some riders, such as a terminal illness rider, are often provided for no charge. Others, such as disability income rider, can make a significant impact on life insurance premiums. But adding a rider to a life insurance policy can sometimes save you a lot of money over buying a separate policy to accomplish what the rider can do.
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Sometimes the rider is attached to a plan to outline the additional premium surcharge for risky avocational interests, such as sky diving or racing.
Riders also can provide additional benefits such as premium waiver, guaranteed purchase options, spouse or children term insurance benefits.
Specifically to life insurance, this would be any benefit made available by the life insurer that is optional to the policy owner to select that is not part of the base policy features.