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.

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