What does a rider signify in an insurance context?

In an insurance context, a rider is a formal amendment or endorsement to an insurance policy that adds additional benefits or coverage beyond what is provided in the standard policy terms. Riders allow policyholders to customize their insurance contracts to better suit their needs. For instance, a health insurance policy might have a rider that covers additional treatments not included in the base plan.

By utilizing riders, individuals can adapt their coverage to cater to specific circumstances, thereby enhancing the protection they receive from their insurance. This is particularly advantageous in areas where standard policies may leave gaps in coverage or may not address unique risks relevant to the policyholder. Thus, the correct understanding of a rider is that it serves as an addition to the original insurance policy, providing broader or specialized protection.