What does a term rider typically offer?

A term rider is designed to provide additional coverage for a specified period, supplementing the base life insurance policy. This extra coverage may be beneficial for individuals who have temporary financial responsibilities, such as raising children or paying off a mortgage, and who want to ensure that their loved ones have financial protection during those critical years.

The key feature of a term rider is its temporary nature; it is attached to a permanent life insurance policy, offering additional death benefit coverage for a designated term, usually at a more affordable cost than what would be charged for a separate term policy. This functionality allows policyholders to boost their life insurance coverage without altering the structure of their existing permanent policy.

In contrast, options that suggest permanent coverage, reductions in premium payments, or a refund of premiums do not align with the primary purpose and function of a term rider in a life insurance context. The term rider is specifically designed to enhance coverage temporarily rather than changing the fundamental terms of the base policy.