What is a "rider" in an insurance policy?

A "rider" in an insurance policy is specifically designed to modify the terms of the original policy by adding or changing coverage. This addition allows policyholders to tailor their insurance to better meet their individual needs or to enhance their protection against certain risks. For instance, a rider might provide coverage for specific conditions, offer higher limits on certain types of personal property, or even include additional benefits such as accidental death or critical illness coverage.

In contrast, other options refer to different concepts within insurance. A separate policy that offers additional coverage creates a standalone contract rather than modifying an existing one, while discounts for bundling policies pertain to pricing strategies rather than coverage adjustments. A claim processing tool for agents is related to the operational aspect of handling claims but does not address the customization of coverage in an insurance policy. Thus, the definition of a rider aligns precisely with the modification or enhancement of coverage found in an existing policy.