What is a "rider" in an insurance policy?

A rider in an insurance policy refers to an addition that modifies the coverage or terms of the base policy. This means that policyholders can customize their insurance by attaching riders that provide extra benefits or change aspects of their existing coverage. For example, a rider might extend benefits for certain conditions, provide coverage for specific treatments, or alter the terms under which a policy pays out.

This customization aspect is essential as it allows individuals to tailor their insurance to meet their specific needs rather than being confined to a static set of coverage options. Riders can enhance protection or provide additional coverage that isn’t included in the main policy, making them a valuable part of many insurance contracts.

The other options do not accurately capture the essence of what a rider is. While there are specialized policies for particular situations, such as high-risk individuals, those do not represent the concept of a rider. Similarly, claim processing procedures and disclosure requirements do not pertain to the modifications of a policy itself but rather to the operations of insurance as a whole.