Final answer:
The part of a life contract that allows the insured to customize a policy is known as riders. Riders are additional provisions or clauses that can be added to a life insurance policy to modify its terms or provide extra benefits.
Step-by-step explanation:
- The part of a life contract that allows the insured to customize a policy is known as a riders.
- Riders are additional provisions or clauses that can be added to a life insurance policy to modify its terms or provide extra benefits. They allow the insured to tailor the policy to their specific needs and circumstances.
For example, a common rider is the accidental death benefit rider, which provides an additional payout if the insured dies as a result of an accident. Another example is the waiver of premium rider, which waives the premium payments if the insured becomes disabled and unable to work.