What outcome can riders have on the overall cost of a life insurance policy?

Riders can significantly influence the overall cost of a life insurance policy because they are additional features or benefits that can be added to a standard policy, and these enhancements typically come with an additional premium. When a policyholder chooses to add a rider, such as an accelerated death benefit, waiver of premium, or additional coverage for critical illness, the insurer often adjusts the total premium to reflect these extra features. Therefore, while the base premium of a life insurance policy covers standard life insurance protection, adding riders generally leads to an overall increase in the total premiums paid, as each rider usually incurs its own cost.

This understanding highlights how customization of a policy via riders can adjust the financial commitment required from the insured. Choosing to include riders tailored to specific needs can enhance coverage but at the trade-off of higher costs.