Why Two are Better Than One When it Comes to Insurance

An insurance policy rider can provide you with extra value and a custom fit for your needs. Here's how it works.

Some things just go together — think peanut butter and jelly. The same principle applies to insurance. That’s why what’s commonly known as a rider – an add-on to a basic insurance policy – can help make a big difference in the overall value of insurance coverage. Think of a rider as a little extra something that’s added to a basic life or health insurance policy to sweeten the deal and personalize coverage.

Where does the term “rider” come from? Simply put, a rider is something that doesn’t exist on its own. It only comes into play when it’s attached, or “riding,” with something else – sort of like a sidecar on a motorcycle.

When it comes to insurance riders, there are many kinds: Both life and health insurance policies can be beefed up with riders. An insurer determines what types of riders to pair with their policies and it’s up to individuals to choose the ones that are right for their needs.

The bottom line is that the life or health insurance journey isn’t over once an individual has applied for basic coverage: It continues as he or she selects optional riders that customize the experience. It’s almost like taking an off-the-rack dress or suit that fits just OK to a tailor who makes it fit like a glove.

Employers should consider the value provided by riders when deciding which benefits to make available to workers. When speaking to their insurance advisers, they should ask about available riders. For more information about riders, check out this handy article that provides common examples and explains how they work.

This article is for informational purposes only and is not intended to be a solicitation.