Need insight on continuing insurance in retirement

[omni550]

I need some input from the meembers of ththis board as I'm not well-versed in insurance.

I recently took a voluntary early retirement package from mega-corp and am now FIRE'd (yay!). I get company-paid medical coverage until age 65. (However, any increases in premiums and co-pays from January 2007 levels will be borne by me)

I just received an application from the mega-corp's insurance company stating that I could contiue in their Accident Insurance Plan as a retiree.

I would be limited to a max. coverage of $250K (while employed I was insured to $1M) for an annual premium of $2.90/10K (= $72.50/yr).

The benefits cover accidental death and dimemberment, common disaster, coma, repatriation, etc.

I'm single, in my mid-50's, no dependents.

Does it make sense for me to maintain this insurance?

My gut instinct is no, but I want to be sure I'm not overlooking something important.

omni

[Rich_by_the_Bay]

I've always felt that if you think you would benefit from "accidental" death or injury insurance, you don't have enough life and health insurance.

[crazy connie]

Maintain it and name me as your beneficiary!!!

Realistically that $72.50 can be better spent on you since you are not responsible for any others.

[megacorp-firee]

No dependents? Whose future would you be safeguarding?
Nope, don't get it ... just make sure you maintain the health insurance.

[omni550]

Thanks for the quick responses confirming my original gut instinct.

The people on this board are the best!

omni

[saluki9]

I will throw a wrench into the mix here

At 72.50 a year why not just name your favorite charity as the bene? That's a pretty cheap gift that could wind up paying off for them.

[bosco]

Quote:

Originally Posted by saluki9 At 72.50 a year why not just name your favorite charity as the bene? That's a pretty cheap gift that could wind up paying off for them.

great idea!--but why gamble? After you pay your premium, lop off an arm. That way the charity wins big!

Or--just give an extra $72.50/year to said charity....

[kcowan]

Just remember that the reason it is so cheap is because the odds of you ever cashing in is slim. So it is mostly money down the drain. Have a dinner out with a nice bottle of wine with the money. It will improve your outlook and maybe your health.

If you want to be charitable, out them in your will...

[crazy connie]

Quote:

Originally Posted by omni550 Thanks for the quick responses confirming my original gut instinct. The people on this board are the best! omni

Awwwwwwwwwwww shucks... Thanks for noticing!

[tryan]

$72.50 ... that's a heck of a deal for 250k coverage. I paid MORE to fill my gas tank. :

Pay it and make a bother/sister/nephew/neice/me the beneficiary.

[theoldwizard]

Forget the accident insurance. You need long term care insurance

[chinaco]

Quote:

Originally Posted by theoldwizard Forget the accident insurance. You need long term care insurance

It depends on what else it covers aside from accidental death. Bottom line: if you do not have a dependent, who will get the money? You won't... you will be dead. Aside from that, the probability of you dying from an accident is much less than other causes of death (the reason for the low premium). Unless it somehow protect you from some loss, I would dump it.

[mickeyd]

Quote:

could contiue in their Accident Insurance Plan as a retiree.

Save your $72 and treat yourself to a great malt Scotch whiskey. Accident insurance is one of the biggest wastes of insurance premiums besides, you have no dependents.