Search Investopedia

Rider

Filed Under » ,
Dictionary Says

Definition of 'Rider'

A provision of an insurance policy that is purchased separately from the basic policy and that provides additional benefits at additional cost. Standard policies usually leave little room for modification or customization, beyond choosing deductibles and coverage amounts. Riders help policyholders create insurance products that meet their specific needs.
Investopedia Says

Investopedia explains 'Rider'

For example, an accelerated death benefit rider on a life insurance policy would provide the insured with a payout while he or she was still alive, in the event of a terminal illness. The insured could use these funds to pay for medical expenses and to increase the quality of their remaining life. When the insured passes away, their beneficiaries will receive a reduced life insurance benefit, since the rider allowed a portion of the policy to be used early.

Related Definitions

  •

    Vandalism Endorsement

    An optional type of coverage that can be added to a basic hazard or property and casualty insurance policy to provide remuneration to the policy holder if his or her property is ...
    Read More »

  • Permanent Life Insurance

    An umbrella term for life insurance plans that do not expire (unlike term life insurance) and combine a death benefit with a savings portion. This savings portion can build a cash value ...
    Read More »

  • Term Life Insurance

    A policy with a set duration limit on the coverage period. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let ...
    Read More »

    • Guaranteed Minimum Accumulation Benefit - GMAB

      A rider on a variable annuity, which guarantees the minimum amount received by the annuitant after the accumulation period, or a set period of time, is either the amount invested or is ...
      Read More »

    • Waiver Of Premium Rider

      A clause in an insurance policy that waives the policyholder's obligation to pay any further premiums should he or she become seriously ill or disabled. A waiver of premium allows people ...
      Read More »

    • Accidental Death Benefit

      The payment due to the beneficiary of an accidental death insurance policy, which is often a clause or a rider connected to a life insurance policy. The accidental death benefit is ...
      Read More »

    • Commutation

      The right that a beneficiary has to exchange one type of income for another. Commutation is offered to beneficiaries of annuities and life insurance policies, so that they might receive ...
      Read More »

    • Accidental Death And Dismemberment Insurance - AD&D

      A rider attached to a life or health insurance policy. AD&D covers death by accidental means (rather than natural causes) and dismemberment, which includes loss of the use of certain ...
      Read More »

    • Builders Risk Coverage Form

      An insurance policy that covers residential and commercial structures while they are under construction or being remodeled or renovated. Covered building components include foundations, ...
      Read More »

    • Exoneration

      In a general sense, this term means to free from blame or guilt, such as when a criminal is proven innocent. In the financial realm, exoneration usually means to relieve one of a ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions