That's fairly competitive pricing.

Compare to the IPR (Instant Product Replacement), at my local computer store (western Canadian chain) http://www.memoryexpress.com/
2 year IPR: $23.99
3 year IPR: $30.99
4 year IPR: $40.99

With IPR, if your product goes (which includes overclocking a processor to hard), you can have the part replaced on the spot or if you're not comfortable doing the replacement yourself then leave the system with them for 24 hours.
I wasn't going to do IPR on the processor, until the guy showed me that even if you overclock it, it is still covered.