Asymmetrica Glossary

Rider

Also called: policy rider, insurance rider

An optional add-on to a base policy that provides extra benefits (e.g., critical illness, accidental death) for a small additional premium.

Riders extend a base policy with targeted protections — Accidental Death Benefit, Critical Illness, Premium Waiver, Term Rider, etc. They are priced separately and added to the base premium. Rider premiums do qualify for §80C (subject to the overall ₹1.5 L cap and the 10× SA rule on the rider's own SA).

When calculating the implicit XIRR of a participating endowment, rider premiums should be excluded from the cash-flow base — riders buy protection, not yield, so mixing them deflates the savings return artificially.

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