• History of the Fund
• Types of Life Insurance Policies
• Application Process
• Life Insurance Costs
• Application
• Address and E-mail Information
• Glossary of Terms

History of the Fund

The State Life Insurance Fund (Fund) is a state-sponsored life insurance program for the benefit of residents of Wisconsin.

The Fund is a nonprofit organization and receives no subsidies from the state. It is not permitted to use commissioned agents, does not advertise, and is exempt from federal income tax. As a result, overhead expenses are minimal.

The Fund was established in 1911 in response to a national scandal over the improper practices of some life insurance companies.

According to the Insurance Commissioner at the time, the Fund was set up ". . . to give the people of the state the benefit of the best old-line insurance on a mutual plan at the lowest possible cost."

Originally the maximum level of coverage available to each policyholder was $1,000. This maximum is now $10,000.

Types of Life Insurance Policies

The Fund pays dividends on all the life insurance it issues. The two types are:

Term Insurance

A Term to Age 65 policy is offered by the Fund. The premiums for these policies remain the same until the policy terminates. Term to Age 65 may be converted to any type of whole life insurance prior to age 55. (The Fund does not offer decreasing or annually renewable term policies.)

Term insurance provides death protection for a specific period. Death benefits are paid only if you die within that period. People usually buy term insurance to get the most death protection for their money.

Whole Life Insurance

The Fund offers four different whole life policies. An Ordinary Life policy has premiums paid throughout the life of the policyholder. A Life Paid Up at Age 65 policy has premiums payable only to age 65. A 20-Payment Life policy is paid for 20 years. A Single Premium Life policy has one premium paid at the time of issue.

Whole life insurance has lifetime insurance protection for the insured provided the premium is paid. The most common type is Ordinary Life insurance.

Whole life policies accumulate a cash value which is returned to you if you surrender the policy. You may loan against the policy’s cash value. If you do, the policy’s net value will be reduced proportionately.

Whole life insurance is sometimes bought as an investment. However, very little of your premium will be returned to you if you surrender your policy in the early years. For the first several years, the rate of return on the cash value is low. You should not consider any whole life policy as an investment unless you intend to keep it for ten years or longer.

Application Process

Eligibility

Life insurance policies are only available to persons who are residents of the state of Wisconsin at the time the application is submitted. Proposed insureds must be at least 14 days old before an application can be submitted on their life.

All five different policies are available to residents who are standard risks. Residents who are substandard risks are only eligible for an Ordinary Life policy.

Underwriting of the applications of substandard risks may require the Fund to seek information from the Medical Insurance Bureau and/or an investigative consumer report. This information will only be obtained if necessary.

The Fund is not required to provide insurance to all residents who apply. Consequently some substandard risks may not be eligible for insurance from the Fund. The Fund is required to operate in a manner consistent with private insurers with regard to policy coverage, medical examinations, and underwriting guidelines.

Medical Examinations

The Fund requires a medical exam for applicants who are 45 years of age or older. The Fund may request exams on other applicants. If a medical exam is required or requested, the applicant will be required to see a licensed physician. The Fund will pay a set fee for the exam.

Life Insurance Costs

Premium Tables

Waiver of Premium Benefit

Standard risks who buy life insurance through the Fund automatically have a waiver of premium benefit. This means if total and permanent disability of the insured occurs, premium payments are paid by the Fund from the benefit and the policy remains in force.

This benefit expires when the insured reaches age 60 unless the insured is then disabled.

Cash Surrender Value

The cash surrender value is the guaranteed amount of cash available in a policy. Cash surrender values are important to policyholders who wish to borrow money or build an asset fund.

Cash surrender values may be borrowed. If you borrow the cash surrender value and die, this amount will be deducted from the benefits paid. The Fund currently charges 8% interest on outstanding loans. If you terminate the policy, you will receive the net cash surrender value. If you would like a printout of cash values for a desired plan, contact the Fund at 1-800-562-5558.

Other Considerations

Cost is only one consideration in buying life insurance. Consumers should also be concerned about the provisions of the policy contract, the stability of the insurer, and the service received.

Application Instructions

Instructions for completing the Fund application form are included on the form. However, five important instructions should be noted:

1. All questions in the application must be answered. The processing of the insurance will be delayed with incomplete responses.

2. Enter the total annual premium on the application. For a $5,000 policy, the annual premium will be five times the rate per $1,000, etc. This must be entered on the application form even if you are paying quarterly or semiannually.

3. State the full name of all beneficiaries. Do not list beneficiaries as "my wife," "my spouse," or "Mrs. Brown."

4. If the person to be covered by the insurance is a minor, an owner must be designated.

5. Mail the application form and premium to the State Life Insurance Fund, P.O. Box 7873, Madison, WI 53707-7873.

Use the e-mail address or telephone numbers at the bottom of this page to request an application or an application is available to be downloaded below. Note, however, that you will need an Adobe Acrobat Reader to view or print the application, which you can download at no cost from Adobe .

State Life Insurance Fund Application

Address and E-mail Information

State Life Insurance Fund
P.O. Box 7873
Madison,WI 53707-7873
(608) 266-0107 or 1-800-562-5558
ocislif@wisconsin.gov (please include your name and e-mail address)