Glossary

Rider

Also called add-on, supplementary benefit.

An optional add-on to a policy, bought for an extra premium above the base cover.

A rider attaches additional cover to a base policy. Common ones pay an extra amount on accidental death, pay out on diagnosis of a listed critical illness, or waive future premiums if you become disabled.

Each costs extra on top of the base premium, and each has its own definitions and exclusions that are worth reading rather than assuming.

Related terms

  • Premium The amount you pay the insurer for cover, at the frequency the policy sets.
  • Death benefit The amount payable to the nominee if the life assured dies during the policy term.
  • Exclusion A circumstance in which the policy will not pay.

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