What is the purpose of riders in insurance policies?

Riders in insurance policies serve the primary purpose of adding specific coverage options or benefits that are not part of the standard policy. They allow policyholders to customize their insurance to better fit their individual needs and circumstances. For example, a life insurance policy might have a rider that provides additional benefits in the event of a terminal illness, or a health insurance policy might include a rider for long-term care coverage. These additions can enhance the overall value of the policy by providing tailored protections that reflect the insured's personal situation.

This customization ability is what makes riders a vital component of many insurance policies, allowing individuals to opt for extra coverage where they feel it is necessary, instead of relying on a one-size-fits-all policy. The flexibility that riders provide means that policyholders can enhance their coverage according to their specific needs or preferences.