The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: jnw on March 11, 2022, 06:01:44 PM
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Advanced Dungeons & Dragons Insurance. Just kidding: Accidental Death & Dismemberment insurance.
My bank (credit union) says I already qualfy to get a free $1000 AD&D insurance for a named beneficiary. Then they are offering $10,000 per $1 monthly payment, or $12 per year for $10K. They allow up to $30 per month for $300k.
What do ya think?
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I'm comfortable having a policy. It makes me feel better knowing my partner would get something if I died.
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I could do my job about the same after losing my hearing, both legs, an eye, and an arm. I don't see the need for it in addition to regular life insurance.
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Advanced Dungeons & Dragons Insurance. Just kidding: Accidental Death & Dismemberment insurance.
My bank (credit union) says I already qualfy to get a free $1000 AD&D insurance for a named beneficiary. Then they are offering $10,000 per $1 monthly payment, or $12 per year for $10K. They allow up to $30 per month for $300k.
What do ya think?
You might check with your employer to see if they have an insurance policy available at either reduced cost or no cost.
For those doing their taxes, look at your W-2 form "amount in box 12 with code C" to quote the IRS W-2 instructions for "Group-term life insurance".
(pdf) https://www.irs.gov/pub/irs-pdf/iw2w3.pdf
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My former employer offered it and I never took it. It was very inexpensive, but the covered events were very restrictive, so I always felt that my money was better spent on regular group life. I also worked in an office job, so I didn't have a particularly high risk of accidental death or dismemberment.
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As a rule of thumb, I don't trust insurance in general. I once had an x-ray to try to diagnose some pain I was having, and got a letter from the insurance company stating that this seemed like it was somebody else's fault and they didn't want to pay it, but they phrased this in deep legalese. So I countered with my best legalese, explaining the origin of the pain was completely unknown, because it was, and this was critical for diagnosing the real issue. They paid. But seriously, with AD&D, it would not surprise me if they tried to argue something wasn't an accident, or that it was preventable (because accidents very technically are preventable). Kind of like how companies that offer pandemic insurance didn't want to pay out when covid hit. The industry is full of worms.
This doesn't mean I go without insurance, but new forms of insurance are constantly being created, and actuaries have jobs for a reason. It's extremely difficult to know what is reasonable and what is simply motivated by fear, and that's how the industry thrives. As others have mentioned, I think some occupations are more hazardous than others. Overall, I just wish I understood insurance better and how to avoid getting screwed, because I've simply heard too many stories to trust much of anything =/
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I have life insurance for my my children and my spouse. But once my kids are 21 I will allow the policy to drop. Similarly my spouse only needs the money until we have so much money that it doesn't matter. Insurance is not an investment, it's insurance.
EDITed to add: but some workplaces offer very inexpensive insurance as a benefit to their employees. I used to pay $1/month for $100k of coverage. At that level I'd probably just max it out.
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I had AD&D via work, pretty cheap.
Not sure if they would have paid up, but I had it because I was racing motorcycles at the time.
My mom was the beneficiary.
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My 2 cents. Take the feee insurance, and donate $12 to a charity.
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I'd take the free, and pass on the rest. When my DD was young and my wife was staying home with her, we had life insurance on my wife and I (enough to pay off the house and fund expenses for a couple of years). Now, I get 2x my salary through work, plus a nominal amount for wife and kid (maybe $10K and $5K). We're very close to our FI number, though, so that type of insurance is pretty well irrelevant. Personally, even in retirement with a paid off house, I expect we'll still carry homeowners insurance.
I've never had anything like AD&D or long term care or whatever. And I would never have life insurance on a kid. I don't understand the premise of that at all.
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Personally, even in retirement with a paid off house, I expect we'll still carry homeowners insurance.
I think this is a very good idea. A couple years after we moved into this house we had some sewer pipe problems below foundation and it only cost us just the $1000 deductible Was a $7k payout. I'd say after 8 years the insurance company has just about broken even with us now. No telling what's gonna happen next. We live in tornado land as well, so it's kind of no brainer to keep it.
There are lots of ways to save money, hundreds of ways, but I will not sacrifice my physical and mental well being. So I am gonna keep the temp in my house between 70-74F at all times depending on how I am feeling, I will always use TP and never gonna get rid of my homeowner's insurance :) I still manage to save 50 to 60% of my income each month :) It would stress me out every time there are tornado warnings in the city (which happen 2 out of 3 years), knowing I didn't have homeowner's insurance.