What does a "rider" in an insurance policy represent?

A rider in an insurance policy represents a supplemental contract that modifies the coverage of the base policy. Riders are utilized to add, modify, or exclude certain benefits or provisions, allowing policyholders to customize their insurance according to individual needs or circumstances. For example, a health insurance policy might include a rider for maternity benefits, thereby ensuring that those specific healthcare costs are covered, which would not be included in the base policy.

Riders can enhance a policy by providing additional coverage or benefits, addressing specific risks that aren’t fully covered under the standard terms. This flexibility enables both insurers and policyholders to tailor plans, ensuring better protection and satisfaction with the overall insurance arrangement.