Term riders are defined as?

• A. Term riders replace the base policy entirely.
• B. Term riders increase premiums and reduce death benefit.
• C. Term riders are only used with term policies and do not attach to permanent plans.
• D. Term insurance added to a permanent plan to provide additional coverage.

Answer: (D)

Term riders add term life coverage to an existing permanent policy to provide extra protection. They don’t replace the base policy; they sit on top of it, adding a separate term death-benefit for a specified period. The base permanent policy stays in force, and the rider’s coverage (and its premium) is added to the policy. This setup is useful for temporary needs—like paying off a mortgage or protecting dependents during a period of higher financial obligation—without paying for a whole extra permanent policy. Many term riders can be convertible to permanent coverage later, but the core idea is that you’re adding term insurance to a permanent plan, not altering or replacing the base policy.