Life Insurance Policy and/or Annuity Contract Protection in the Event of an Issuing Company Failure
In Wisconsin as long as you’re a state resident and your insurance company is licensed to do business in Wisconsin, your life insurance policies and annuities are insured by the Wisconsin Insurance Security Fund. You can check to see whether or not the policy has been issued by a licensed company by calling 608.266.3586. Insurance coverage is limited as follows:
- Life Insurance Death Benefit: $300,000 per insured life
- Life Insurance Cash Surrender: $300,000 per insured life
- Annuity Benefits (Present Value): $300,000 per contract owner
Based on the Wisconsin Insurance Security Fund Web site, it appears the limits are applied per policy or contract type (so you could have a $300,000 life insurance policy and a $300,000 annuity contract from the same company and have full coverage for both).
It’s possible (probably likely) that before a payment is made from the Wisconsin Insurance Security Fund a sound insurance company will be found to take over the failed company’s policies and contracts. The Fund exists as a backup to protect consumers and to assist in transitioning insurance policies and contracts from failed insurers to sound ones.
