What is the primary purpose of life insurance riders?

What is the primary purpose of life insurance riders?

• A. To increase the main policy premium
• B. To modify or enhance the coverage of the original policy
• C. To restrict the options available to policyholders
• D. To add mandatory coverage requirements

Answer: (B)

The primary purpose of life insurance riders is to modify or enhance the coverage of the original policy. Riders are additional provisions that can be added to a basic life insurance policy to customize it according to the policyholder's specific needs or circumstances. This capability allows individuals to tailor their insurance coverage to better suit their personal and financial situations, providing options for additional benefits, such as accelerated death benefits, waiver of premium, or coverage for accidental death. By doing so, riders enhance the flexibility and value of the life insurance policy, allowing it to address various risks or needs that may not be covered in the standard terms of the original policy.

The primary purpose of life insurance riders is to modify or enhance the coverage of the original policy. Riders are additional provisions that can be added to a basic life insurance policy to customize it according to the policyholder's specific needs or circumstances. This capability allows individuals to tailor their insurance coverage to better suit their personal and financial situations, providing options for additional benefits, such as accelerated death benefits, waiver of premium, or coverage for accidental death. By doing so, riders enhance the flexibility and value of the life insurance policy, allowing it to address various risks or needs that may not be covered in the standard terms of the original policy.