What does a term rider provide in a life insurance policy?

A term rider in a life insurance policy provides additional term life coverage to the insured. This type of rider allows policyholders to add a specified amount of term life insurance to their existing policy, typically for a limited time, without needing to undergo additional underwriting or provide evidence of insurability. The purpose of a term rider is to boost the overall death benefit during critical years or while the policyholder has additional responsibilities, such as raising children or paying off a mortgage.

This additional coverage is designed to be temporary and often comes with level premiums that can be lower than the premiums of permanent policies. It offers flexibility, as it can be used to supplement a permanent life insurance policy while the policyholder may need more substantial coverage for a particular period.

The other options do not accurately reflect the primary purpose of a term rider. Additional cash value and permanent insurance benefits relate to whole life or other permanent policies, whereas lower premiums on whole life are not directly connected to the function of a term rider.