Which statement best describes the purpose of a rider in insurance?

The purpose of a rider in insurance is to enhance or modify coverage options within an existing policy. Riders are additional provisions that can be added to a standard policy, allowing policyholders to tailor their coverage according to their specific needs or preferences. For example, a life insurance policy might include a rider that provides additional coverage in the event of critical illness or allows an accelerated death benefit under certain circumstances. This customization helps to address particular risks or situations that may not be sufficiently covered by a basic policy.

This flexibility is a key aspect of riders; they allow policyholders to expand their protection in ways that align with their individual circumstances. It is important for consumers to understand the various riders available, as they can greatly enhance the overall value and effectiveness of their insurance coverage.