Why might additional underwriting be required when a rider is included?

When a rider is added to a life insurance policy, additional underwriting may be necessary primarily to assess the impact of the new conditions or coverage. Riders often introduce new benefits or alter existing ones, such as adding critical illness coverage or waiver of premium provisions. Each of these modifications could change the risk profile of the insured or the terms of the policy itself.

Underwriters need to evaluate the implications that these changes might have on the overall risk. For example, if a policyholder adds a rider that covers critical illnesses, the insurer must analyze how likely it is that the insured will use this benefit and how it affects the company's potential liability. This thorough evaluation ensures that the insurer can maintain its risk management strategy while accurately pricing the policy and reflecting the increased coverage in the policy's terms.

Other options, while related to the underwriting process in some capacity, don’t directly address the fundamental reason for requiring additional underwriting when a rider is included. For instance, ensuring that riders do not increase premiums is more of a consequence of underwriting rather than a reason for it. Simplifying policy terms is typically not a goal of adding a rider; instead, it often complicates the policy. Avoiding liability concerns is an important underwriting concern, but it does not specifically capture the