What effect does a rider have on a life insurance policy?

A rider is an additional provision added to a life insurance policy that modifies its terms or coverage. When a rider is included, it typically provides additional benefits or enhances existing ones, which leads to an increase in the policy's premium. This is because the insurer assumes additional risk or provides more financial guarantees with the added coverage or benefits.

For instance, common riders include accelerated death benefit riders, which allow policyholders to receive part of the death benefit while still alive under certain circumstances, and waiver of premium riders, which allow the policy to remain in force without premium payments if the policyholder becomes disabled. Both of these riders enhance the policy's value but also contribute to a higher premium due to the increased coverage options provided.

The other choices present scenarios that do not accurately reflect the purpose or impact of riders on a life insurance policy. Riders are designed to add benefits, not eliminate contestable periods or provide only temporary advantages. Additionally, they certainly alter the policy by changing the coverage features and costs.