Annuity rider is an optional provision added to an annuity contract, usually at an extra cost, that modifies or enhances benefits beyond the base contract. Common riders include guaranteed lifetime withdrawal benefits, enhanced death benefits, long-term care or chronic illness features, and return-of-premium provisions. Riders may create additional internal values, such as income or benefit bases, and often come with detailed rules about withdrawals, fees, and termination. While riders can tailor annuities to specific client goals, they also add complexity that requires careful explanation and ongoing monitoring.

Advisors select annuity riders based on client priorities"income security, legacy, health-related contingencies, or liquidity. They compare rider costs and benefits across products and document why particular riders were recommended as part of suitability and best-interest processes. During reviews, advisors track rider-specific values and confirm that clients are using the contract consistent with rider requirements. When considering replacements, they analyze whether new riders truly offer better value than existing ones. Understanding annuity riders enables advisors to customize contracts while keeping the overall product understandable and aligned with the clientTMs plan.