What is a term rider?

• A. Permanent coverage with level premium.
• B. A rider that only provides disability coverage.
• C. Temporary term coverage added to an existing policy.
• D. A rider that refunds premiums.

Answer: (C)

A term rider is temporary life insurance protection added to an existing policy. It acts like a separate term policy that sits on top of the base policy, providing a death benefit for a set period (for example, 5, 10, or 20 years) while the underlying policy remains in force. The coverage from the rider is designed to be temporary, so it typically ends when the term ends unless the policy includes options to renew or convert the rider to permanent coverage.

This is useful when you want extra protection during a financially sensitive period (such as while a mortgage or other debts exist) without altering the permanent policy itself. The rider’s premium is usually paid in addition to the base policy, and the rider can often be converted to permanent coverage if your circumstances change. It’s not simply disability coverage, not a premium-refund feature, and it does not itself provide permanent coverage, which is why the described option best fits the concept of a term rider.