What does a term rider typically provide for the insured?

A term rider typically provides limited coverage for a certain period. This type of rider is often added to a permanent life insurance policy, allowing the policyholder to obtain additional coverage for a specified duration, such as 10, 20, or 30 years. The main purpose of a term rider is to provide extra financial protection during a time when the insured may need it most, such as raising children or paying off a mortgage.

This coverage does not accumulate cash value or provide permanent protection; instead, it is focused on covering the insured for the limited term specified in the policy. Once that term expires, the coverage ceases, or the insured might have the option to convert it to another form of insurance.

In contrast, permanent coverage refers to insurance that lasts for the lifetime of the insured, investment growth involves policies that build cash value over time, and higher premiums upon renewal are typically associated with traditional term life policies rather than riders.