What term describes a written modification attached to a policy that requires additional premium?

What term describes a written modification attached to a policy that requires additional premium?

• A. Waiver of premium rider
• B. Family term rider
• C. Rider
• D. Children's term rider

Answer: (C)

In life insurance, a rider is a written modification attached to a policy that requires an additional premium. This umbrella term covers any add-on that changes or expands the policy’s terms or benefits beyond the base plan, and you pay extra to fund the added coverage. For example, a waiver of premium rider is one such add-on that waives future premiums if you become disabled; a family term rider or a children’s term rider are other specific riders that add coverage for family members. While those are types of riders, the general term that describes the modification itself is rider, which is why it’s the best answer.

In life insurance, a rider is a written modification attached to a policy that requires an additional premium. This umbrella term covers any add-on that changes or expands the policy’s terms or benefits beyond the base plan, and you pay extra to fund the added coverage. For example, a waiver of premium rider is one such add-on that waives future premiums if you become disabled; a family term rider or a children’s term rider are other specific riders that add coverage for family members. While those are types of riders, the general term that describes the modification itself is rider, which is why it’s the best answer.