Thanks for your response, snozdop, and your suggestion for 1Password.
If that's not available, I'm racking my brain as to why on earth I want Apple to store my keychain access then. Is it so that I can set up iCloud on a different Mac and able to recover those keychain passwords? That's the only reason I can think of. If that's not the case either then I am going to delete my keychain from Apple server for added security reasons.
The purpose of iCloud Keychain is to keep "your Safari website usernames and passwords, credit card information, and Wi-Fi network information up to date across all of your approved devices that are using iOS 7.0.3 or later or OS X Mavericks v10.9 or later."
If you regularly log in to a website on one device, the password will be available to you on all your other devices. If you don't have multiple Macs or any iOS devices, then the benefits are somewhat limited. But it could still be useful when re-installing the OS as your passwords are stored off-site and wouldn't need setting up again.