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.

RELATED TERMS
  1. Disease Management Program

    Disease management programs can help control health care expenses ...
  2. Dutch Disease

    Negative consequences arising from large increases in a country's ...
  3. Acceleration Life Insurance

    A type of policy that pays a portion (typically 25\% or 50\%) ...
  4. Accidental Death Benefit

    The payment due to the beneficiary of an accidental death insurance ...
  5. Clean Sheeting

    The fraudulent act of purchasing a life insurance policy without ...
  6. Accelerated Option

    This term refers to an option in an insurance contract, usually ...
Related Articles
  1. Insurance

    How To Manage Chronic Illness Expenses

    Chronic illnesses affect millions of Americans, but it is not only taxing their health. Its also hurts their wallets. But there are ways to reduce the burden.
  2. Financial Advisor

    A Closer Look At Accelerated Benefit Riders

    Accelerated benefit riders can allow policy holders to access the death benefit in their life insurance policy while they are still living if they meet certain conditions. Knowing what you get ...
  3. Financial Advisor

    How Accelerated Benefit Riders Fill Insurance Gaps

    Accelerated benefit riders have become the new darlings in the financial marketplace. Here's why.
  4. Insurance

    How Long-Term Care Riders on Life Insurance Work

    What is the difference between Accelerated Death Benefit for Chronic Illness and Long-Term Care Riders offered on life insurance policies?
  5. Investing

    Can Biogen Change How We View Alzheimer's Disease? (BIIB)

    As the global population gets increasingly older, Alzheimer's disease is going to get increasingly prevalent. As a result, being diagnosed with Alzheimer's is becoming one of our greatest fears. ...
  6. Insights

    Chan and Zuckerberg Invest to "cure all diseases" (FB)

    The charity led by Priscilla Chan and Mark Zuckerberg is embarking on an ambitious science-led initiative to cure, prevent or manage all diseases.
  7. Personal Finance

    Are Return-Of-Premium Riders Worth It?

    Find out if this policy coverage will add money to your pocket, or cost you in the long run.
  8. Financial Advisor

    Living And Death Benefit Riders: How Do They Work?

    Find out how these different riders work, and which type is right for you.
  9. Retirement

    3 Big Medical Costs and How to Protect Against Them

    Without a plan, an unexpected injury or chronic disease will cost you.
  10. Insights

    Alexion’s ‘Uncommon Strength’ Campaign Offers a Win-Win (ALXN)

    Amid a dearth of information on rare diseases, patients will benefit from the information sharing platform, and the company will get networking benefits.
RELATED FAQS
  1. What does it mean to have orphan drug status?

    In 1982, The U.S. Food and Drug Administration (FDA) recognized the lack of incentive for pharmaceutical companies to develop ... Read Answer >>
  2. How do I determine the face value of a life insurance policy?

    Read about how to determined the face value for any life insurance policy, and see what circumstances can trigger a change ... Read Answer >>
Hot Definitions
  1. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  2. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  3. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  4. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  5. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
  6. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it to generate greater sales or margins and/or retain more customers ...
Trading Center