What is a "rider" in a health insurance policy?

A rider in a health insurance policy is an amendment that modifies the coverage of the policy. This means it can add additional benefits, alter existing terms of coverage, or exclude certain conditions or treatments. Riders allow policyholders to customize their insurance plans according to their specific needs and circumstances. For example, a rider may provide coverage for a specific illness or procedure that is not included in the standard policy, or it might enhance the benefits related to a particularly high-risk activity.

Other options present concepts that do not accurately define a rider. A standard set of terms in the original policy refers to the basic provisions of the insurance contract that remain unchanged. A penalty for late premium payment pertains to potential consequences of failing to make payments on time, which does not involve modifying the policy itself. Lastly, a fixed benefit that applies to all policies is a description of a standard feature, rather than a specific amendment that changes terms or coverage in a particular policy.