Wisconsin Administrative Code
Office of the Commissioner of Insurance
Chapter Ins 2 - Life Insurance
Appendix I
Important information about your life insurance policy
Keep this information with your insurance papers
Life insurance is a critical part of a broader financial plan. If you are considering making changes in the status of your policy you should consult with a licensed insurance or financial advisor in order to find an alternative best suited to your needs. Available alternatives include but are not limited to:
* Accelerated Death Benefit: Your policy may provide an early or accelerated cash payment if you have a terminal or chronic illness.
* Cash Surrender: Your policy may have a cash surrender value the life insurer will pay you if you surrender your policy.
* Gift: You may be able to give your policy to another person, who would then assume responsibility for paying premiums.
* Life Settlement: You may be able to sell your life insurance policy to a third party for an amount greater than the cash surrender value or accelerated death benefit but less than the expected death benefit under your policy. The third party becomes the policyholder and receives the benefit upon the death of the insured. Upon sale to the third party you would pay no further premium. Wisconsin law requires brokers and providers who arrange life settlements to be licensed.
* Maintain Your Policy: You may be able to maintain your life insurance policy in force by paying the premiums directly or using your current policy value to pay the premiums.
* Policy Changes: You may be able to reduce or eliminate future premium payments by obtaining a paid-up policy, by reducing coverage, or through other options available from your life insurer.
* Policy Loan: You may be able to obtain a loan from your life insurance company using the cash value of your policy as collateral. Loan proceeds may be used to pay premiums or for other purposes.
* Third-Party Loan: You may be able to obtain a loan from another party to pay your premiums using the cash value or a portion of the death benefit as collateral.
The listed alternatives may or may not be available depending on your circumstances and the terms of your life insurance policy.
If you have a specific concern about your life insurance policy, contact your insurance company or agent:
(Insurer name)
(Customer service)
(Address)
(Toll free telephone number, if available)
(Telephone number)
You may also contact your financial advisor, or you may contact the Office of the Commissioner of Insurance at 1-800-236-8517 or 608-266-0103; Email: ociquestions@wisconsin.gov.
