Rider

Definition

• A provision that can be purchased and added to an insurance policy, allowing policyholder(s) the ability to modify or customize the policy as they see fit. For example, a policyholder potentially has the option to attach a rider to a life insurance policy that provides the insured a partial benefit if diagnosed with a terminal illness.

Synonyms
insurance rider, clause

Related Terms and Acronyms

• Consignment Insurance — Definition,
  • Insurance for assets on loan, consignment, in transfer of ownership, or up for auction.
• Insurance Policy — Definition,
  • A legal contract between an insurer and entity that specifies what the insurer is required to cover and any benefits the insured entity is entitled to.
• Policy Declarations — Definition,
  • The section of the insurance policy that declares the specifics of the insurance policy including premiums, named perils, and policy limits, amongst others.
• Purchase Option — Definition,
  • An agreement where a portion of monthly rent can be credited toward the purchase of a property.
  • The portion of a vehicle lease that determines how much a lessee pays the lessor at the end of the lease to buy the vehicle. The price is usually the residual value.