What is the purpose of a "policy rider"?

A policy rider serves as an amendment or addition to a standard insurance policy that provides extra coverage or specific benefits that are not included in the original terms of the policy. This can be crucial for tailoring coverage to meet the unique needs of a policyholder. For instance, if a homeowner wants protection for a high-value item, such as jewelry, that item may not be covered under a standard homeowner’s policy. By adding a rider, the homeowner can ensure that this valuable item is adequately covered, thereby enhancing their overall protection.

In contrast, the other options focus on different aspects of a policy that do not relate to the concept of a rider. For example, while decreasing premium costs may be a consideration when modifying a policy, it does not inherently involve adding additional coverage. Similarly, canceling a policy or changing personal information does not create additional benefits or enhancements to the existing policy; rather, they are administrative actions that affect the status of the insurance contract.