What is true about a term rider when attached to a permanent life policy?

When a term rider is attached to a permanent life insurance policy, it enhances the coverage by providing temporary protection, which can apply to the insured or family members. This allows policyholders to secure additional coverage for a limited period or specific needs, often at a lower cost compared to increasing the permanent coverage itself. The nature of term riders is to fill gaps in coverage during critical times, such as when a family’s financial responsibilities may be higher, like the birth of a child or a mortgage, without altering the permanent policy’s structure.

The temporary nature of a term rider means that the coverage ceases once the term expires, making it an ideal choice for supplementary coverage rather than a permanent solution. This flexibility helps adjust for changing family situations and financial needs without the expense of permanently increasing the death benefit of the whole life or universal life policy.

The other options either misinterpret the functionality and purpose of a term rider or do not accurately reflect how life insurance policies and riders interact with each other.