What are "riders" in life insurance policies?

Riders in life insurance policies refer to optional add-ons that enhance or modify the standard coverage provided by the base policy. These enhancements can cater to specific needs or circumstances of the policyholder, allowing for greater flexibility and customization of the insurance plan. For example, riders may include options for accelerated death benefits, waiver of premium in case of disability, or coverage for critical illnesses. Each rider typically incurs an additional cost but can significantly broaden the policyholder's protection, making it a tailored solution to an individual's insurance needs.

The other options do not accurately define what riders are in the context of life insurance. Mandatory features are standard in all policies and do not provide the optional flexibility that riders offer. Beneficiaries are individuals designated to receive the death benefit but are not classified as riders. Discounts for healthy individuals, while common in insurance, pertain to pricing rather than the structural features of a policy itself.