Rider (A.K.A. Endorsement)

A rider, also known as an endorsement, in the context of insurance, is an amendment or addition to an existing insurance policy that changes the terms or scope of the original coverage. Riders allow policyholders to customise their insurance policies to fit their specific needs without having to purchase a new policy.

They can add, modify, or exclude coverage for certain items or conditions. For example, in a life insurance policy, a common rider is the accelerated death benefit rider, which allows the policyholder to access some of the death benefits if they are diagnosed with a terminal illness.

Riders are particularly useful because they offer flexibility and personalisation. In health insurance, a critical illness rider might be added to provide additional coverage for illnesses like cancer or heart attack, which might not be fully covered under the standard policy.