What can be a consequence of adding riders to a life insurance policy?

Adding riders to a life insurance policy often enhances the coverage provided by the policy. Since these riders come with additional benefits—such as coverage for critical illness, accidental death, or disability—they typically increase the total premium you will pay. This is because the insurer is taking on more risk by providing additional benefits that are not included in the base policy.

The inclusion of riders can significantly enhance a policyholder's protection; however, it also reflects in the cost, necessitating a higher premium. This is a common understanding in life insurance, where increased coverage or additional options almost invariably leads to escalated costs. Therefore, a policyholder needs to evaluate the benefits against the increased premiums when deciding on adding riders to their policy.