When it comes to life insurance, "riders" do not refer to passengers in your car. Instead, the term refers to the additional benefits that can be added to basic life insurance policies. According to your policy needs, a rider can enable you to increase or limit your coverage put forth in the original conditions of your policy in order to tailor the policy to your requirements and premium objectives. You can also combine riders for an additional fee, depending on your needs. Each benefit outlined in the rider will mean a higher premium payment, while each limit will usually mean a lower premium payment.

Generally, if a claim is made on the rider portion of the policy, it will cancel itself out, while the original policy remains in force. All insurance companies offer riders with a variety of different coverage, premium rates and terms and conditions that vary depending on the particular carrier.

Below are listed the most common life insurance riders and the circumstances under which you might need them:

• Accidental Death or Double Indemnity

This rider will pay out an additional sum to the death benefit if the insured dies in an accident that is equal to the face value of the policy. This effectively doubles the amount of the payout, hence the term "double indemnity". Be sure to carefully review the conditions of the rider since many insurance companies have their own interpretation of what constitutes an "accident". This rider is particularly useful if you earn the only source of income since it will amply provide for your family in the event of your sudden demise.

• Spouse Insurance Rider

This rider added a term insurance policy for your spouse for an additional amount on your premium. This rider is useful if your spouse contributes substantially to the household income, or if your spouse provides valuable services that will need to be paid for in their absence, such as childcare and housekeeping.

• Child Term Rider

This rider pays out a death benefit if a child dies before a certain age. When the child achieves maturity, the term insurance can be converted to a permanent insurance plan expanding coverage by up to five times the original face amount without having to undergo medical exams. This rider is especially useful if you want to protect against the child developing a health condition that might make them uninsurable.

• Guaranteed Insurability Rider

Also known as a Renewal Provision, this rider allows you to add coverage to your base insurance policy within the specified period without further medical exams. This rider is valuable in the event of declining physical health and will allow you to get more coverage without having to prove insurability. This type of rider usually includes time limits and other restrictions.

• Waiver of Premium Rider

This rider will override the insured`s need to make payment of future premiums in the event that they become either permanently disabled or lose income as a result of an accident or illness. This rider will exempt the insured from paying a premium on the policy until they are able to return to work. This rider can be especially important if the premium on the policy is high. One caveat to remember is that "completely disabled" can have a different meaning to an insurance company.

• Return of Premium Rider

The idea for this rider is to return the premium that you paid into your policy. With this rider you have a marginal premium to pay which is returned to you at the end of the policy`s term. If you die, then your beneficiaries receive the amount of the premiums that you paid.

• Accelerated Death Benefit Rider

This rider allows an insured person to use a portion of their death benefits when they have been diagnosed with a terminal illness that will shorten their lifetime considerably. Most insurers will advance anywhere from 25 to 40% of the death benefit of the base policy to the holder of the policy. This rider is offered for a small or no premium in many cases.

• Family Income Benefit Rider

This rider provides a regular income to family members in the event of the death of the insured. It gives surviving family members the obvious benefit of having a steady monthly income.

• Long Term Care Rider

This rider offers monthly payments in the event that the insured`s health deteriorates to the point of needing a nursing home or home care.

These are all general descriptions of the most widely used types of life insurance riders. Of course, to make sure that you are getting the coverage you want, it is important to check with each individual insurance company not only the terms and conditions of their riders, but also the specific meanings of the words that the insurance company uses to describe situations in which the rider provides benefits.