Dread disease

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"Dread disease" is an added benefit for life insurance policy that will force the life insurance firm to pay out a percentage of the death benefit to the policy holder if he or she is diagnosed with a serious disease. One would want to purchase this added benefit to help finance treatment and/or medication of the disease.

However, if the patient is going to eventually expire, the payout could also be used to finance funeral arrangements. People who purchase dread disease from a "dread disease rider", purchase it because they are at high risk of contracting a disease or cancer.

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