Multiple choice

Which of the following statements in respect of riders is incorrect?

  1. Rider means the basic death cover of a life insurance policy.

  2. Riders can be added through an endorsement.

  3. Riders refer to supplementary benefits in life insurance policies.

  4. Riders help customize individual’s preferences.
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A Correct answer
Explanation

Life insurance riders are contingent additional benefits over a primary policy, which come into play in case of a specific eventuality. They offer financial cover over and above basic sum assured in a life insurance policy. Even with the occurrence of the event, the life cover remains intact. This means that even if you have drawn on a particular rider, you remain eligible for the death benefit on the life insurance plan.

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