Should I get death & dismemberment insurance? - single with no dependents

[peanutz]

My job is currently offering me a choice to get death & dismemberment insurance through the company but I'm not sure if I should get it. I'm in my late twenties with no family of my own, and I don't work in a "dangerous" environment or do too many risky activities.

Also, if I were to die, who would gain from it if I were signed up on such a plan?

[ksgill]

My job is currently offering me a choice to get death & dismemberment insurance through the company but I'm not sure if I should get it. I'm in my late twenties with no family of my own, and I don't work in a "dangerous" environment or do too many risky activities.

Also, if I were to die, who would gain from it if I were signed up on such a plan?

Absolutely YES! Put me as your beneficiary.

[wesboag]

My job is currently offering me a choice to get death & dismemberment insurance through the company but I'm not sure if I should get it. I'm in my late twenties with no family of my own, and I don't work in a "dangerous" environment or do too many risky activities.

Also, if I were to die, who would gain from it if I were signed up on such a plan?

Definitely not! Accidental death and dismemberment is a terrible product at both cost and for what it really is..Playing encore on your life. Avoid this. The most important coverage for an income earning individual with no dependents is Disability coverage and Critical illness coverage as these are living benefits of which will benefit you. One provides income if you were to become disabled and unable to work and the latter, a lump sum to pay for treatments and drugs not covered by OHIP, cash to take time off work to replace income, build ramps in your home should you become paralyzed, etc or stricken with a life threatening illness such as cancer, stroke, heart attack, and 23 other most common diseases, accidents, illnesses. Life insurance you might want to consider since it is pretty cheap now at your age, but never AD&D. What is covered through your employee benefits? This is the first step in understanding what you are covered for. You can address your needs based on this.

If you did decide to get this (if it ever does even pay out - you do know the parameters of this right?) would be your estate or your named beneficiaries

[Mrbj]

Take whatever they offer for free. My company give me "basic life insurance", but I dont contribute to "optional" one. I'm against life insurace anyway, as one you are dead they would try their best not to pay out a penny...you wont be needing money after yoru death...

[peanutz]

Thanks you guys, especially wesboag for your very comprehensive explanation. I think I would consider a life insurance because you're right, it's cheap now and I'd try to get the longest-reaching plan that I could.

I'd have to look back at the benefits booklet to see what I get.

[wesboag]

Take whatever they offer for free. My company give me "basic life insurance", but I dont contribute to "optional" one. I'm against life insurace anyway, as one you are dead they would try their best not to pay out a penny...you wont be needing money after yoru death...

Don't listen to this person besides his point about taking what they give you for "free".

Anyone who is "against" life insurance needs to give their head a shake. It’s not for you, it’s for your dependents. Life insurance should be mandatory for anyone who has someone financially dependent on them, period. Life insurance always pays out so as long as your pre-approval answers were honest and you had a medical prior to the policy approval. I'm not talking about Mortgage life insurance here or non-medically underwritten insurance.

[wesboag]

Thanks you guys, especially wesboag for your very comprehensive explanation. I think I would consider a life insurance because you're right, it's cheap now and I'd try to get the longest-reaching plan that I could.

I'd have to look back at the benefits booklet to see what I get.

No problem! have a close look at your benefits booklet and report back here. We will help you out.

[Wing Nut]

Pass on the accidental death and disability insurance. It's a terrible product. Why would you need more insurance if you die from an accident than if you die from other means? You definitely need disability insurance because if you were unable to work for a few years due to a disability your income stops but your expenses don't. Disability is your greatest risk and needs to be covered. I'm kid of meh on critical illness insurance. It's definitely a risk, but you can take your chances or insure, as Wes as ably written. I'd meet with a good independant agent who can discuss all of your options with you.

Re-evaluate as your situation changes (marriage, house, kids), but I don't think you need life insurance now.

I'm against life insurace anyway, as one you are dead they would try their best not to pay out a penny...you wont be needing money after yoru death...

That's an ignorant comment. Insurers don't try to get out paying benefits. If you lie on the app or commit someother wrong, then yes, but they pay out if everything is right.

Try to tell a widow with three kids, large debts such as a mortgage and little ability to earn an income without her husband that insurance is dumb. What about a family of five who has lost their wage earner for a few years and no source of income.

Please stop spreading this crap; someone might actually think you know what you're talking about and take this dangerous advice.

[Akitakara]

My job is currently offering me a choice to get death & dismemberment insurance through the company but I'm not sure if I should get it. I'm in my late twenties with no family of my own, and I don't work in a "dangerous" environment or do too many risky activities.

Also, if I were to die, who would gain from it if I were signed up on such a plan?

You can name your parent(s) as beneficiary if you wish.

[wirebound]

Don't listen to this person besides his point about taking what they give you for "free".

Anyone who is "against" life insurance needs to give their head a shake. It’s not for you, it’s for your dependents. Life insurance should be mandatory for anyone who has someone financially dependent on them, period. Life insurance always pays out so as long as your pre-approval answers were honest and you had a medical prior to the policy approval. I'm not talking about Mortgage life insurance here or non-medically underwritten insurance.

My only response to this would then be I'm not sure the OP would need life insurance either; or at least, not a lot of it. Assuming there is no debt, no dependents, then really, the only cost I assume (and I'm not expert here!) would be the cost of the funeral, maybe some legal fees? There wouldn't be a need for significant amounts of life insurance at all.

[ksgill]

That's an ignorant comment. Insurers don't try to get out paying benefits. If you lie on the app or commit someother wrong, then yes, but they pay out if everything is right.

Try to tell a widow with three kids, large debts such as a mortgage and little ability to earn an income without her husband that insurance is dumb. What about a family of five who has lost their wage earner for a few years and no source of income.

Please stop spreading this crap; someone might actually think you know what you're talking about and take this dangerous advice.

Really? Why do the insurance companies wait until after you are dead to claim that you lied on your application? Because they collect premium! It's a big scam and you know it?

[wesboag]

Really? Why do the insurance companies wait until after you are dead to claim that you lied on your application? Because they collect premium! It's a big scam and you know it?

They don't. There is a 2 year incontestability clause. After 2 years, they can't revoke the policy. If you intentionally lied, that’s a whole other story, but even then they will just reduce the benefit based on what your rates would have been if you had not been fraudulent. If you are alluding to Mortgage life insurance, both Wing and I are against this as well, as would anyone with half a brain. Legitimate life insurance is completely different then post claim underwritten insurance sold by banks, often disguised with the description of creditor protection.

And insurance companies don't wait. They base the approval of your policy on both medicals and facts recorded by YOU. If you have been honest in your answers, you will have absolutely nothing to worry about.

[Wing Nut]

Really? Why do the insurance companies wait until after you are dead to claim that you lied on your application? Because they collect premium! It's a big scam and you know it?

It's simple, actually. What reason would insurance companies have to check you out this thoroughly if you haven't died, suffered a disability or some other insured event? None. If you work as a deep-sea diver but said you work in an office, why should they check? If you died in a diving accident, they will challenge the claim, but that's your fault.

If you smoked and didn't disclose that, it likely shows up in a blood test but if not, then that's fraud and darn right they won't pay out.

You're missing a couple of things here. First, if they had to do all this work to check out every little claim, it would be enormously expensive. All policy holders pay for that and our premiums would be much higher. As someone whose life is insured, I don't want to pay maybe 10% more for this.

Here is a case to consider. A man who earns a six-figure income with a wife who is home raising kids may have a $200K-$300K mortgage (or more) and other debts. Let's imagine that she hasn't worked for years and could only get a low-paying job if she had to go back to work. If he was hurt and unable to work, or if he died, his family would be crushed financially. Absolutely devastated. Are you married, with kids? If so, you need this insurance you hate so much and, if you have a wife and kids, you're putting them at risk if your life and health are not insured. Maybe you don't need insurance, I don't know. Not everyone does, but to say that insurance companies are out to rip people off and steal money is just ignorant; you don't know what you're talking about. Think about what I've said, for the sake of those who may depend on you.

If you are honest on your application, you have nothing to worry about.