Wholesale Life Insurance

Updated: 09 June 2023

What Does Wholesale Life Insurance Mean?

Wholesale life insurance is life insurance coverage offered at work. Employers set up wholesale life insurance as an extra benefit for their employees. Wholesale life insurance is used by companies that have between five and 50 employees. That’s because they are too small to qualify for true group life insurance, which is only available to companies with more than 50 employees.

Insuranceopedia Explains Wholesale Life Insurance

Life insurance companies offer discounts on life insurance coverage sold through an employer. That’s because the insurance company will be selling a large number of policies to the employees. While wholesale life insurance is not as inexpensive as group life insurance, it’s still less expensive than coverage on the individual market.

Wholesale life insurance sells individual policies. The employees own their life insurance policy even though it comes through their company. That way they can keep their coverage even after leaving the job. However, employers typically cover some if not all of the life insurance premiums since this is a workplace benefit.

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