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.

BREAKING DOWN '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. Whole Life Insurance Policy

    A life insurance contract with level premiums that has both an ...
  3. Life Insurance

    A protection against the loss of income that would result if ...
  4. Universal Life Insurance

    A type of flexible permanent life insurance offering the low-cost ...
  5. Variable Life Insurance Policy

    A form of permanent life insurance, Variable life insurance provides ...
  6. Group Carve-Out Plan

    A type of group term life insurance designed to appeal to well-paid ...
Related Articles
  1. Financial Advisor

    Is Life Insurance From Your Employer Enough?

    Covering the needs of the ones you would leave behind is not easy. But efforts to secure a life insurance policy outside of work should pay off.
  2. Financial Advisor

    Buying a Life Insurance Policy? Read This First

    Knowing who needs life insurance, how it works and the different types of insurance can help consumers make informed decisions about this product.
  3. Insurance

    Life Insurance

    Life insurance is an important component of basic financial planning. Find out how life insurance works and how insurance companies are able to profit through providing financial security to ...
  4. Financial Advisor

    Getting Life Insurance in Your 20s Pays Off

    Find out how Americans in their 20s can benefit from a well-thought-out life insurance policy, especially if they are able to build cash value for retirement.
  5. Insurance

    Term Life Insurance: Everything You Need to Know

    Term life insurance is an affordable way to financially protect your loved ones after your death. Here's what you need to know before purchasing a policy.
  6. Insurance

    Whole or Term Life Insurance: Which Is Better?

    Learn the difference between term life insurance and whole life insurance. Understand when it is beneficial to buy each type of life insurance.
  7. Insurance

    Getting Your (Insurance) House in Order

    From starting a family to retirement, insurance can play a role in taking care of financial needs. This piece looks at some of the choices you can make.
  8. Insurance

    What's Better: Whole Life or Term Insurance?

    Life insurance can be a difficult decision to make, especially for a young adult. Here's a look at the benefits and costs of getting whole life insurance.
  9. Insurance

    Tips for Helping Clients with Life Insurance Needs

    Life insurance needs will likely change over the client’s lifetime and again financial advisers can provide an objective sounding board.
Hot Definitions
  1. Money Market

    A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. ...
  2. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network is permanently recorded.
  3. Fintech

    Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
  4. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  5. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  6. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
Trading Center