Dread Disease Rider

DEFINITION of 'Dread Disease Rider'

A special addition to a life insurance policy that gives a percentage of the death benefit to the policy holder if he or she is diagnosed with a serious disease, such as cancer or heart disease.

BREAKING DOWN 'Dread Disease Rider'

Money from a dread disease rider is typically used to help offset the medical costs of the disease.

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RELATED FAQS
  1. What is the difference between the death benefit and cash value of an insurance policy?

    Understand the difference between the various components of a life insurance policy including the death benefit and a policy's ... Read Answer >>
  2. If an individual becomes a policyholder of a variable life insurance policy and ...

    The correct answer is b. Insurance companies issuing variable life policies must allow the holders of those policies to exchange ... Read Answer >>
  3. Why is accidental life insurance so inexpensive?

    Accidental life insurance is an inexpensive way of obtaining life insurance coverage for yourself or someone else in your ... Read Answer >>
  4. How can I borrow money from my life insurance policy?

  5. Do I have to pay taxes on a death benefit?

    I still work. I also receive SSI due to my wife's passing.  ... Read Answer >>
  6. What is long-term care insurance?

    Long-term care insurance is an insurance policy that that helps a patient pay for long-term care. The policy usually covers ... Read Answer >>
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