So my workplace is changing the insurance policy. It offers us the opportunity to enhance our current insurance or leave it as is. We can leave it as is and I wouldn't pay, but if I decide to upgrade, I have to pay some amount depending on how much coverage I want.
When it comes to my life insurance, now I can upgrade that up to a maximum 1.3 million dollars, but it would cost me annually at most 900 something dollars if I go to the maximum. I am thinking of keeping the life insurance as is at 25k$ coverage, meaning I wouldn't pay a cent on my paycheck since I have no kids and girlfriend/wife, I own no home either, so if I die...well sad to say, but I just die and the money I guess would go to my parents if I understand it correctly (since they will be beneficiary).
The only thing that I am not sure of is if I should take Employee Optional Critical Illness Insurance and/or Accidental Death & Dismemberment Insurance for someone in my situation.
For the critical insurance, I can go up to 600 000$ in coverage at most which would cost me if I go all the way to the maximum about 1485$ annually. I am thinking of taking it, the only thing is, should I? and how much coverage if I should chose it?
For the Accidental Death & Dismemberment Insurance, the maximum I can go for is 500 000$ which would cost me 117$ annually. It seems cheap to pay, but the chances of accidental death & Dismemberment are very low. I work as an assistant-manager at a pharmacy.
Now if I decided opt for none of them, the only thing my work insurance covers without me paying a cent is:
Employee Short Term Disability Insurance (Weekly Indemnity Benefit)
Coverage: 70% of annual salary
Coverage amount is $497.
Employee Long Term Disability Insurance (Monthly Indemnity Benefit)
Coverage: 60% of annual salary
Coverage amount is $1,846.
Employee Basic Life Insurance
Coverage: 200% of annual salary
Coverage amount is $25,000.
So my questions is, am I right to upgrade the critical illness or should I just leave all of it untouched it considering I don't own a home, I have no kids and no wife/girlfriend? Thanks in advance.
