What occurs to the overall annual premium cost when a term rider expires?

When a term rider expires, the overall annual premium cost typically decreases. This is because a term rider is an additional component attached to a base insurance policy that provides extra coverage for a specified period. When the term rider reaches its expiration, the insurer will no longer be collecting premiums for that added coverage, leading to a reduction in the total premium cost.

As a result, the insured is no longer paying for the additional coverage that was included in their policy, which generally results in a lower overall premium. This change allows policyholders to experience a decrease in their financial obligation towards insurance premiums once the rider is no longer in effect.

Understanding this concept is crucial for managing insurance costs effectively and helps policyholders make informed decisions about their coverage and budgeting.