What is a common reason for including riders in a policy?

Including riders in a policy serves to provide supplemental benefits or additional coverage options that cater to the specific needs of the policyholder. Riders are modifications or add-ons to an insurance policy that enhance its functionality by allowing for more customized protection features. For example, common riders may cover critical illness, waiver of premium, accidental death benefits, or long-term care. This flexibility enables individuals to tailor their insurance policies according to their unique situations and financial goals, ensuring that they receive appropriate coverage beyond the basic terms of the policy.

The other options do not accurately reflect the primary purpose of riders. Reducing the death benefit or enhancing the investment aspect of a policy are not direct objectives of adding riders. In fact, riders can often increase the total cost of the policy instead of reducing benefits. Lastly, the inclusion of riders does not negate the need for a beneficiary designation; beneficiaries are crucial for policy execution upon the insured's death, irrespective of the policy's additional riders.