- 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.
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.