What is the difference between a waiver and a rider in a policy?

A waiver refers to a provision in an insurance policy that allows for certain exclusions or limitations to be waived, meaning the insurer agrees not to enforce those specific conditions in certain circumstances. This can provide more comprehensive coverage by ensuring that certain risks are included, which might otherwise be excluded under the terms of the policy.

On the other hand, a rider is an additional provision that can be added to an insurance policy to enhance or modify its benefits. Riders are typically used to provide additional coverage or benefits that are not part of the standard policy. For example, a life insurance policy might include a rider that provides a terminal illness benefit, allowing the insured to access part of the death benefit while still alive if diagnosed with a terminal condition.

Therefore, the correct response highlights that a waiver eliminates certain exclusions (which can broaden the coverage scope), while a rider introduces new benefits or modifications to the existing insurance policy. This distinction is crucial in understanding how policies can be tailored to meet the needs of policyholders.