Wholesale Life Insurance

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.



comments powered by Disqus
Hot Definitions
  1. Federal Reserve Note

    The most accurate term used to describe the paper currency (dollar bills) circulated in the United States. These Federal Reserve Notes are printed by the U.S. Treasury at the instruction of the Federal Reserve member banks, who also act as the clearinghouse for local banks that need to increase or reduce their supply of cash on hand.
  2. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  4. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  5. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  6. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
Trading Center