Why might an insurer include a policy rider for a specific type of coverage?

Including a policy rider for a specific type of coverage allows insurers to tailor their products to meet the unique needs and concerns of policyholders. Riders are additional benefits or modifications added to a base insurance policy that provide enhanced or specialized coverage. For instance, a rider could cover critical illnesses, accidental death, or disability, thereby addressing specific consumer needs that may not be fully met by the standard policy.

By incorporating riders, insurers can offer flexibility and allow policyholders to customize their coverage to better align with their individual circumstances or risks. This customization can help meet unforeseen risks that a standard policy might not cover comprehensively, promoting consumer satisfaction and trust in the insurance provider.

In contrast, streamlining the application process, reducing underwriting requirements, or aiming for the lowest premiums are not primary reasons for including riders. While these aspects are important in insurance practices, they do not directly reflect the purpose of providing riders, which is fundamentally about enhancing coverage options in response to consumer demand.