What is a rider in life insurance policies?

A rider in life insurance policies is essentially an amendment or addition that provides extra benefits beyond the base coverage offered by the policy. Riders allow policyholders to customize their insurance policies according to their specific needs and circumstances. For example, a common rider is an accidental death benefit, which provides additional coverage in the event of the insured's death due to an accident. By incorporating riders, the policyholder can enhance their coverage, ensure more comprehensive protection for their loved ones, or address particular concerns that may not be covered within the base policy.

The other options do not correctly define a rider. While a type of permanent policy refers to a specific class of life insurance that lasts for the lifetime of the policyholder, it does not encompass the concept of additional benefits through modification. Adjusting premium rates pertains to the standard terms of the policy but does not reflect the extra benefits provided by a rider. Lastly, a clause outlining exclusions refers to what is not covered under the policy, which is quite different from the idea of adding features or enhancing coverage through a rider.