What constitutes a 'loss of income' rider?

A 'loss of income' rider is specifically designed to provide financial support to the policyholder by offering cash benefits for lost wages due to injury or illness. This rider is particularly important for those who rely on their income to meet daily living expenses, as it ensures they have a safety net during periods when they are unable to work. The provision typically outlines the amount and duration of benefits the insured will receive, making it a vital addition to a health or disability insurance policy.

The other choices do not accurately describe a loss of income rider. The first choice refers to an additional premium that increases coverage limits, which does not specifically address income loss. The third option discusses a renewal clause based on income decrease, which is unrelated to the concept of compensating for lost wages. Lastly, adding beneficiaries in the event of job loss doesn't align with the primary function of a loss of income rider, which is to provide cash flow rather than modify beneficiary designations.