Types of wholesale insurance
Health insurance
This refers to group VHI policies within one company. VHI policies are very popular in the corporate sector: enterprises insure their employees almost always in the form of wholesale insurance. Single health insurance for all personnel is a contract between the insurer and corporate client - company.
Accident insurance
Employer can insure the life and health of its employees under this program, thereby gaining an advantage over other employers. The employer can choose the list of employees to be insured under this program, as well as payment limits and certain risks. Employee can receive compensation payments for temporary loss of labor capacity, disability or injury as a result of an accident under such a policy, and his family will get a financial support in the event of the death of their relative, the company employee. Several so-called insurance groups can be created in the team by such parameters as same profession, position in the company, wage level, or age.
Benefits of wholesale insurance
Saving money
Joining an already issued group insurance policy is often cheaper than buying an individual insurance policy. Nonetheless, the client can get the same coverage and same contract terms. However, you need to bear in mind that if you get insurance for a loan from the bank, then it, as an agent, charges an additional commission.
Simplifying the insurance process
When concluding a contract and choosing insurance, the client needs to communicate directly with the insurer (bank or employer), so in some cases it may be more convenient and faster than if a person separately concluded insurance contracts with insurance companies. Besides, when applying for a mortgage, a client can simultaneously get insurance in the same bank branch, it will save him time and effort.
Disadvantages of wholesale insurance
Limited choice of programs and conditions
It should be clear that within the framework of a wholesale insurance agreement, all the contract terms are the same for every insured, i.e. some clauses of the contract cannot be changed, or you cannot choose an insurer you like or remove a risk that is unnecessary for insurance. However, banks often allow customers to determine the list of insured events and size of insurance benefit.
The risk of losing insurance when quitting
If you have joined wholesale insurance at your place of work, you will lose this insurance when you leave. In some cases, you may continue to serve it but at your own expense.
Photos are from open sources.
