How do riders typically affect the premium of a life insurance policy?

Riders are additional benefits added to a life insurance policy that provide extra coverage or features. When a policyholder adds a rider, such as an accidental death benefit or a waiver of premium, it typically results in an increase in the premium. This is because riders enhance the policy's scope, increasing the insurer's potential payout in the event of a claim.

For instance, if a policy includes a rider that doubles the death benefit in cases of accidental death, the insurer is assuming a higher risk and thus charges a higher premium to offset that increased liability. Therefore, the inclusion of riders generally signals an expansion of coverage that will usually require the policyholder to pay more, leading to the conclusion that riders typically increase the premium due to the added coverage they provide.