What does "riders" mean in the context of life insurance?

In the context of life insurance, "riders" refer to additional benefits or provisions that can be added to a standard insurance policy, providing extra coverage or enhancing existing coverage. Riders allow policyholders to customize their insurance plans according to their specific needs. For example, a common rider could be a waiver of premium rider, which means that if the policyholder becomes disabled, the insurance company will waive the premium payments while maintaining the coverage.

Riders play an essential role in tailoring insurance solutions for individuals since they enable a more personalized approach to protecting oneself and their loved ones. They can cover various situations, such as critical illness, accidental death, or long-term care, thus improving the overall value of the insurance policy.