While Valuable, Riders Create Challenges For Marketers
The use of riders on insurance policies can create some interesting, and perhaps unanticipated, consequences from a marketing perspective.
First, an insurance contract is an intangible and potentially intimidating compilation of legalese, and the use of the word “rider” can further fuel any negative perception. Why not use a more customer-friendly term such as “additional benefit” or “supplemental feature?”
After all, for whose benefit is the term really used?
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The term also implies something has been added to the policy, presumably for an additional cost, therefore suggesting this is something the customer must separately understand and also something requiring an additional decision.
So, would it be better to incorporate the riders benefit into the base policy? Or, is a separately needed decision consistent with the sales tactic of avoiding one big decision in favor of multiple smaller ones?