What is Wholesale life insurance’
Wholesale life insurance is a type of employer-sponsored protection against the loss of income in case the insured becomes deceased. Wholesale life insurance is a variation on group life insurance offered by employers. It differs from group life insurance that employees use and private policy wholesale life insurance.
In order for people to qualify for wholesale life insurance, the employer is obliged to pay at least part of the award. Wholesale insurance is available for groups as small as five people. Group life insurance refers to a large group.
Breaking down the ‘Wholesale life insurance’
Wholesale life insurance policies are designed to provide life insurance at a discount to a small group of employees. Employers often include an award for costs associated with the wholesale life insurance as part of the package.
In addition, employers can provide wholesale life insurance policy for their employees and then allow employees to purchase additional policies for their families (spouses and children). In order to be eligible for wholesale life insurance, the company generally should be not less than five and not more than 50 employees.
The advantages of wholesale life insurance
- Easy qualifications. Enrollment in the wholesale life insurance can be automatic when the employee comes on Board with the company, and therefore all have the right, without a medical examination is not required. This is a great advantage for those with pre-existing health conditions such as diabetes or a previous heart attack. Chances are that this person can do at a more rapid rate compared to the market.
- The cost reduction. Wholesale life insurance can be paid or subsidized company that gives you the life insurance at a low price or even for free. The employee may even be able to buy additional coverage at low prices. Costs are usually lower because the cost per person goes down as the plan increases.
- Convenience. Subscribe to wholesale life insurance requires virtually no effort, and if you need to pay, it is easily deducted from your paycheck.
Disadvantages of wholesale life Insurance
- Changing jobs results in lost coverage. No matter the employee leaves voluntarily or is fired. In most cases the worker cannot maintain its wholesale policy when they leave their job.
- The coating may end at retirement or a certain age. Wholesale life insurance usually ends at a certain age or when the employee retires.
- The employer may modify or terminate coverage. This action does not require conset because the contract is between the employer and the insurer.
- Limited. Wholesale life insurance is not tailored to specific individuals. In addition, the employee may not be able to buy as much coverage as they want.