What is the primary purpose of a term rider in life insurance?

The primary purpose of a term rider in life insurance is to add term coverage to an existing policy. This option allows policyholders to increase their coverage temporarily without having to purchase an entirely new policy. A term rider typically allows individuals to secure a set amount of additional life insurance for a specific period (usually a term of years) at a lower cost than a whole new policy might entail. This approach is beneficial for individuals who need extra coverage for a certain time, such as when raising children or paying off a mortgage.

The other options do not accurately reflect the function of a term rider. While limited coverage at a high premium suggests a risk-averse approach, term riders are generally structured to be cost-effective. The reduction of cash value is a characteristic of whole life policies rather than term riders, which are related to the death benefit associated with term insurance. Lastly, eliminating the death benefit during the term would contradict the purpose of insurance, which is to provide financial protection in the event of death; term riders are meant to enhance death benefits, not eliminate them.