How it works
LIA defines a rider as extra cover or a benefit attached to a basic policy, for an extra premium. Its common examples:
- a disability waiver of premium, which stops the premiums if the policy owner is disabled
- an extra payout if death is caused by an accident
- family income, a monthly income to the family after a death
Health policies have their own. MoneySense names riders that pay part of the deductible and co-insurance on an Integrated Shield Plan, a daily cash amount in hospital, and a lump sum on a critical illness.
Three things to check in any rider:
- Whether it accelerates the base benefit. An accelerated rider pays part of the base sum assured early, so less is left later. MoneySense notes the policy may end once such a rider has paid.
- What it costs to keep. Its premium sits on top of the base premium, and Integrated Shield Plan riders are paid in cash only.
- Who gets the money. LIA's nomination guide says a rider follows the main policy for nomination.
The rider's terms are the insurer's, product by product.
Worked example, with made-up figures: a client has a whole life policy with a S$200,000 sum assured and an accelerated critical illness rider for S$100,000. A diagnosis that meets the definition pays S$100,000 now. The death benefit left on the base policy is then S$100,000, not S$200,000.
Where it shows up in your week
A client's cover is the base policy plus its riders, and the riders are the part they forget. The CRM keeps your notes on each client's page, so the full list is there at the next review.
Related terms
Questions advisors ask
Sources
- LIA Singapore, Insurance terms: rider and its common examples, read 27 September 2026
- MoneySense, Health insurance terms: know what you're paying for: policy riders and accelerated benefits, last updated 2 July 2026, read 27 September 2026
- MoneySense, Understanding integrated shield plans: riders paid in cash, last updated 2 July 2026, read 27 September 2026
- LIA Singapore, Your Guide to Nomination of Insurance Nominees 2026: riders follow the main policy, 25 March 2026, read 27 September 2026