What does Dread Disease Rider mean?

It is a stipulation of a life insurance policy which guarantees to offer a certain percentage of the death benefit to the policy holder. It is the case when the policy holder gets a life threatening disease, as would be heart complications, cancer, kidney failure, stroke and other such medical conditions.

Dread Disease Rider explained

The main condition, on which the rider itself is based, is that the policy holder is eligible to receive payment from the dread disease rider only in the case his/her medical condition surveys in no less than six months from the signing of the contract. The benefits from the rider are usually aimed towards the necessary medical care of the policy holder, plus other incurring expenses. Other medical conditions which will be covered by the dread disease rider are cases when the policy holder must undergo operations like organ transplantations, bypass surgery, and operation of certain tumors.