Wholesale Life Insurance

What Does Wholesale Life Insurance Mean?

Wholesale life insurance is a type of life insurance coverage provided by employers as an additional benefit for their employees. It is typically used by companies with between five and 50 employees, as these companies are too small to qualify for true group life insurance, which is available only to companies with more than 50 employees.

Insuranceopedia Explains Wholesale Life Insurance

Life insurance companies offer discounts on policies sold through employers because they can sell a large number of policies to employees. While wholesale life insurance is not as affordable as group life insurance, it is still less expensive than coverage on the individual market. For workers who want to compare what they get through their employer against what they could buy on their own, it helps to look at the average cost of life insurance on the individual market.

Wholesale life insurance involves individual policies that are owned by the employees, even though the coverage is provided through their employer. This allows employees to maintain their coverage after leaving the job. Once an employee leaves the company, comparing their wholesale policy against quotes from the best life insurance companies is often worthwhile, since individual coverage outside an employer plan may have different pricing or features. However, employers typically cover some or all of the premiums, as this is considered a workplace benefit.