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. Rider

    A rider is a provision of an insurance policy that adds or amends ...
  4. Level Death Benefit

    A life insurance payout that is the same whether the insured ...
  5. Accelerated Death Benefit (ADB)

    An accelerated death benefit (ADB) allows a life insurance policyholder ...
  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

    How Accelerated Benefit Riders Fill Insurance Gaps

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

    Are return-of-premium riders worth it?

    Find out if this policy coverage will put money in your pocket, or cost you in the long run.
  4. 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?
  5. 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.
  6. Retirement

    How Survivorship Life Insurance Works

    Should you buy a survivorship life insurance policy?
  7. Financial Advisor

    How Life Insurance Settlements Are Evolving

    The life insurance industry marches forward by offering more ways that consumers can access the death benefits in their policies. Here's one of the newest.
  8. Insurance

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

    The advantages and disadvantages of medical exam-free life insurance.
  9. Insurance

    5 Things You Didn't Know About Life Insurance

    Life insurance policies can be simple or complex; make sure you know as much as you can before setting up yours.
  10. Insurance

    3 Steps to Plan for Life’s 'What If?' Moments

    These three steps are crucial when planning for legal, financial and physical health.
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. Donchian Channels

    A moving average indicator developed by Richard Donchian. It plots the highest high and lowest low over the last period time ...
  2. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, ...
  3. Moving Average - MA

    A moving average (MA) is a widely used indicator in technical analysis that helps smooth out price action by filtering out ...
  4. Stop Order

    A stop order is an order to buy or sell a security when its price increases past a particular point in order to limit losses ...
  5. Inflation

    The rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of ...
  6. Candlestick

    A chart that displays the high, low, opening and closing prices for a security for a single day. The wide part of the candlestick ...
Trading Center