Wheeling, IL (PressExposure) January 28, 2011 -- AccuQuote, one of the largest independent life insurance quoting and brokerage firms in the United States, explains why group life insurance coverage may be inadequate compared to individually underwritten term life insurance. The company offers advice to those seeking valuable and affordable protection for their families.

By definition, term life insurance provides a death benefit only if the insured dies during the period specified in the policy - the term. If the insured survives until the end of the term, the coverage ceases without value.Group term life insurance acts as a traditional term life policy. However, group policies provide coverage for a large group of people, usually a group of employees, under one insurance contract.

Many employers offer group life insurance coverage as a component of an employee's overall benefits package. The amount offered is usually only equivalent to 3 to 4 times one's annual income, sometimes less. Financial experts suggest 10 to 20 times one's annual income is an adequate amount of coverage.

"All too often, people rely on group life insurance coverage to protect their loved ones," says Byron Udell, founder and CEO of AccuQuote. "Although it makes sense to elect this type of coverage, especially if your employer offers it at no cost to you, it's usually not enough. That's why we encourage everybody to obtain an individually underwritten term life insurance policy in addition to, or in place of group coverage. It offer high face amounts at low premiums, and it's extremely affordable."

AccuQuote provides reasons why group term life insurance should not be a family's only source of financial protection:

• If not free, cost may be higher - Group life insurance spreads the risk of claims over a large group of people, so the premiums are divided between the employer and all participating employees. "If your group coverage isn't free and you're healthier than the average person, you may pay more for group life insurance than an individual term life policy since everyone pays the same premiums," says Udell.
• Limited choices-Choice of plan, carrier and face amount is typically made by the employer, or entity providing the group coverage. "With group coverage, you don't have the opportunity to shop around for the best value and lowest price," says Udell.
• Benefits are not guaranteed - Most group policies are not portable. "If you lose your job, you may lose your group term life insurance benefits. In this economy, it's not wise to take that kind of risk," says Udell.

Group term life insurance does have some benefits. For instance, those who have serious health conditions who are otherwise 'uninsurable' can qualify for group coverage. However for the young and healthy, AccuQuote recommends shopping around for an affordable term life insurance policy. Rates are currently near record lows.

"Life insurance is one of the most important components of a families overall financial plan. Having some protection is always better than having nothing at all," says Udell.

About AccuQuote

AccuQuote helps consumers find the best values in term life insurance by combining instant online life insurance quotes with the personal service of unbiased life insurance professionals who answer questions, identify important issues and make meaningful recommendations. The company offers consumers an extensive selection of life insurance products, including term life, whole life, universal life, accidental death, long-term care, disability insurance and selected annuities. AccuQuote.com has many useful insurance tools, including a term life insurance calculator to help consumers determine their life insurance needs, a glossary of industry terminology, a collection of articles and press releases that cover many life insurance topics and a blog that provides opportunities for discussion on life insurance and personal finance. For additional information or to get free quotes for low cost life insurance, please call AccuQuote at 800-442-9899.

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