What is the purpose of an insurance policy rider?

An insurance policy rider serves a specific function in modifying an existing insurance policy by adding or altering coverage. Riders typically enhance the original benefits or provide additional options that are not included in the standard policy. This allows policyholders to tailor their insurance coverage to better meet their individual needs, such as including specific risks or increasing coverage limits.

For example, a health insurance policy may include a rider that covers additional services such as dental or vision care, which are not part of the base policy. This flexibility is vital in ensuring that policyholders have coverage suited to their particular situations, allowing for adjustments that reflect changing circumstances or requirements over time.

Other options either do not align with the primary function of a rider or describe actions that are unrelated to the enhancement of coverage. Cancellations or refunds pertain to different aspects of policy management and enforcement rather than the purpose of a rider.