Dread Disease Rider
Categories: Insurance
Dread Disease Rider is the newest mystery novel you have yet to read.
Eh, okay. The real definition is not nearly as exciting. A dread disease rider is a little provision you can tack onto a life insurance policy (you know, the type of insurance policy that kicks in when someone dies).
A dread disease rider is where the insurance company agrees to pay the policyholder some of the death benefit payout before they die, if the beneficiary gets a disease like cancer, kidney failure, yada yada yada. Basically, the insurance company agrees to give out some of their cash early if the life insurance person isn’t dead yet, but the person who would get the payout could really use some help right now.
A dread disease rider especially makes sense if the whole reason you have a life insurance policy in the first place is to make sure someone dependent on you won’t be left out in the cold financially after you die. It’s nice to know they won’t be left out in the cold financially even if you’re still alive, too.