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. Retirement

    Variable Vs. Variable Universal Life Insurance

    Do you know why you might need one policy versus the other? Read on to find out.
  2. Options & Futures

    How To Avoid Taxation On Life Insurance Proceeds

    Decrease the value of your taxable estate and prevent the tax man from getting you one last time.
  3. Options & Futures

    Benefit Issues When Your Employer Goes Bankrupt

    There are some safeguards in place to ensure that health benefits don't just disappear when a plan is canceled.
  4. Options & Futures

    Life Expectancy: It's More Than Just A Number

    Find out how this factor determines your life insurance premiums and affects your payout.
  5. Investing Basics

    Enterprise Resource Planning System: A How To

    An ERP system won’t transform poor management into good management, but the real-time business analytics can help make good management even better.
  6. Insurance

    What are some examples of when insurance bundling is a bad idea?

    Learn about situations where insurance bundling may not be a favorable option. Bundling insurance is often a good idea, but there are times when it isn't.
  7. Insurance

    Who are the best-rated life insurance companies in the US?

    Learn about what makes an insurance company the best. Read about the best life insurance companies in the U.S. in 2014, following ratings by Weis.
  8. Insurance

    What are some examples of unexpected exclusions in a home insurance policy?

    Learn about commonly excluded perils with different standard insurance policies. Explore events that homeowners should consider when purchasing insurance.
  9. Compared to other options, does it ever make sense to include cash-value life insurance in your investment portfolio?
    Trading Strategies

    How Good An Investment Is Life Insurance?

    Compared to other options, does it ever make sense to include cash-value life insurance in your investment portfolio? A look at the pros and cons.
  10. Investing Basics

    How To Calculate Goodwill

    Goodwill is an intangible, but it is still possible to effectively calculate or estimate goodwill for a company.

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center