Open enrollment is here, and I have to make some benefit election decisions.
I pay for group AD&D (accidental death & dismemberment) coverage with my employer, and I can add my spouse to this coverage at an after-tax rate of $0.75/mo per $100k of coverage for an accidental death.
We do have term life insurance for my spouse, but this rate seems too good to pass up from a purely rational expected value standpoint. Am I correct in that assessment? This rate is around 5x to 10x cheaper than example rates I see online. Total cost is on the order of a coffee each month, and would pose no impact to our overall household budget. The coverage amount works out to around 60% of spouse's term life policy.
Spouse is late 30's/female, without any particularly risky hobbies or activity. So the main risk factor would be a car accident, presumably. It also would pay out, at a lower rate, for something like loss of limb, which the term life policy obviously wouldn't do.
Caveat... comparing this to an individual AD&D policy is not quite apples to apples, because 1) the premiums are not level, and 2) it is either/or coverage, i.e. if both spouse and I were to die in an accident, it only pays out my coverage, not both of ours.
Please restrict discussion to the topic at hand. Specifically, suggestions to purchase my own term life insurance and skip the group coverage for myself are not helpful in this case.
I pay for group AD&D (accidental death & dismemberment) coverage with my employer, and I can add my spouse to this coverage at an after-tax rate of $0.75/mo per $100k of coverage for an accidental death.
We do have term life insurance for my spouse, but this rate seems too good to pass up from a purely rational expected value standpoint. Am I correct in that assessment? This rate is around 5x to 10x cheaper than example rates I see online. Total cost is on the order of a coffee each month, and would pose no impact to our overall household budget. The coverage amount works out to around 60% of spouse's term life policy.
Spouse is late 30's/female, without any particularly risky hobbies or activity. So the main risk factor would be a car accident, presumably. It also would pay out, at a lower rate, for something like loss of limb, which the term life policy obviously wouldn't do.
Caveat... comparing this to an individual AD&D policy is not quite apples to apples, because 1) the premiums are not level, and 2) it is either/or coverage, i.e. if both spouse and I were to die in an accident, it only pays out my coverage, not both of ours.
Please restrict discussion to the topic at hand. Specifically, suggestions to purchase my own term life insurance and skip the group coverage for myself are not helpful in this case.
Statistics: Posted by evancox10 — Tue Oct 22, 2024 6:57 pm — Replies 2 — Views 176