Which form of life insurance involves modifying the terms of an existing policy?

The correct answer is related to the concept of a rider, which is a provision that modifies the original terms of a life insurance policy. Riders can add benefits or adjust existing coverage to better meet an insured's needs. For example, a policyholder might include an accelerated death benefit rider that allows them to access a portion of the death benefit if diagnosed with a terminal illness. This customization can enhance the policy's value and better align it with the policyholder's current situation or preferences.

In contrast, options generally refer to choices the policyholder has under the terms of the policy, such as conversion options or settlement options, but they do not explicitly change the core terms of the policy itself.

Renewal relates to continuing a policy after its initial term, which involves re-evaluating the premium and coverage but does not modify the original terms on an ongoing basis. Cancellation refers to the termination of a policy, which also does not involve modifying the terms of an existing policy.

Overall, a rider is the only term that directly pertains to modifying or adapting the provisions of an existing life insurance policy.