Riders, also known as supplementary benefits, are special policy provisions that provide benefits not found in the main policy provision or make adjustments to it. These provisions are then attached to or "ride" a basic policy, thus giving its name.
Most riders have to be specifically requested to be included subject to the insurer's approval and cannot exist without a base policy. This means one cannot by riders without a main policy first. When a rider is added into the policy automatically or by request, it will be reflected into the policy schedule with an endorsement that outlines the details of the rider. The tenure of a rider cannot exceed that of the main policy as well.
Common riders one would find include:
- Waiver of Premium Rider
- Total and Permanent Disability Rider
- Criticall Illness Rider
- Accidental Death Rider
- Payor Benefit Rider
...and many more. It would be advisable to discuss which riders are suitable with your personal advisor.
For example, Mr X purchases a Whole Life policy which covers against Death and Total Permanent Disability. He requests to add on a Critical Illness Rider which allows him to claim in the event of a critical illness. Without the rider, he would not be able to exercise the claim. He would pay the premium for the main policy + the premium for the rider for this entire policy.
