Wholesale Life Insurance

AAA

DEFINITION of 'Wholesale Life Insurance'

A type of employer-sponsored protection against the loss of income in the event the insured becomes deceased. Wholesale life insurance is a variation on group life insurance that is offered by employers. It differs from group life insurance in that employees apply for and own their own policies with wholesale life insurance.


In order for the employees to qualify for wholesale life insurance, the employer must pay at least part of the premiums. Wholesale insurance is available for groups as small as five individuals. Group life insurance applies to larger groups.

INVESTOPEDIA EXPLAINS 'Wholesale Life Insurance'

Wholesale life insurance policies are intended to provide life insurance coverage at a discount rate to a small group of employees. Employers often cover the premium costs associated with wholesale life insurance as part of its employee benefits package.


In addition, employers may provide a wholesale life insurance policy for its employees, and then allow the employees to purchase additional policies for their families (spouse and dependent children). In order to be eligible for wholesale life insurance, the company generally must have a minimum of five and a maximum of 50 employees.

RELATED TERMS
  1. Wholesale Insurance

    Coverage for employer groups that are too small to qualify for ...
  2. Adequacy Of Coverage

    The adequacy of coverage concerns how well your insurance policies ...
  3. Wholesale Banking

    Banking services between merchant banks and other financial institutions. ...
  4. Variable Annuity

    An insurance contract in which, at the end of the accumulation ...
  5. Life Insurance

    A protection against the loss of income that would result if ...
  6. Life Annuity

    An insurance product that features a predetermined periodic payout ...
Related Articles
  1. Variable Vs. Variable Universal Life ...
    Retirement

    Variable Vs. Variable Universal Life ...

  2. How To Avoid Taxation On Life Insurance ...
    Options & Futures

    How To Avoid Taxation On Life Insurance ...

  3. Benefit Issues When Your Employer Goes ...
    Options & Futures

    Benefit Issues When Your Employer Goes ...

  4. Life Expectancy: It's More Than Just ...
    Options & Futures

    Life Expectancy: It's More Than Just ...

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center