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. Living and Death Benefit Riders

    Living and death benefit riders are a descriptive class of contractual ...
  3. Accelerated Death Benefit - ADB

    A benefit that can be attached to a life insurance policy that ...
  4. Rider

    A provision of an insurance policy that is purchased separately ...
  5. Level Death Benefit

    A life insurance payout that is the same whether the insured ...
  6. Terminally Ill

    A person who is sick and is diagnosed with a disease that will ...
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. Insurance

    Let Life Insurance Riders Drive Your Coverage

    Find out how these additional benefits can help you customize your policy.
  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. Financial Advisor

    Should You Buy A Life Insurance Disability Rider?

    Does it make sense to pay an additional cost for a waiver of premium rider on a life insurance policy?
  6. Retirement

    How Survivorship Life Insurance Works

    Should you buy a survivorship life insurance policy?
  7. Retirement

    3 Big Medical Costs and How to Protect Against Them

    Without a plan, an unexpected injury or chronic disease will cost you.
  8. 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.
  9. Insurance

    Critical Illness Insurance: Get Paid If You Get Sick

    This coverage will allow you to focus your attention on getting well, rather than getting by.
  10. Insurance

    Life Insurance Without Physical Exam: What's the Catch?

    The advantages and disadvantages of medical exam-free life insurance.
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 >>
Hot Definitions
  1. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
  2. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  3. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  4. Indirect Tax

    A tax that increases the price of a good so that consumers are actually paying the tax by paying more for the products. An ...
  5. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  6. Beta

    Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. ...
Trading Center