Wisconsin Life Insurance Policy Requirements

Wisconsin law imposes specific requirements on life insurance policies sold in the state under Chapter 632 of the Wisconsin Statutes. The Office of the Commissioner of Insurance (OCI) oversees insurance regulation.

Free Look Period

Wisconsin provides a free look period for life insurance:

During the free look period, the policyholder can:

• Review the policy thoroughly
• Return it for a full refund of premiums paid
• No questions asked, no penalty

Incontestability Clause

Wisconsin requires a 2-year incontestability clause in all life insurance policies:

• After 2 years from issue, the insurer cannot contest the policy based on misstatements
• Exceptions: Fraud, non-payment of premiums
• If policy is reinstated, a new contestability period may apply
• Protects beneficiaries from denied claims due to application errors

Suicide Clause

Wisconsin has specific suicide exclusion rules under Section 632.46:

• Standard suicide exclusion is 2 years from policy issue
• For policies with face value less than $10,000, suicide exclusion is 1 year
• After the exclusion period, death by suicide is covered

Grace Period Requirements

Wisconsin mandates grace periods for premium payments:

During the grace period:

• Policy remains in full force
• Death benefits are payable (minus unpaid premium)
• Policy lapses at end of grace period if premium not paid

Beneficiary Protections

Wisconsin has specific beneficiary protection laws:

Creditor Protection

Under Wisconsin law:

• Life insurance proceeds payable to a named beneficiary are protected from the insured's creditors
• Cash surrender values have protection under certain circumstances
• Proceeds payable to the estate are subject to creditor claims

Beneficiary Designation

• Policyowner has the right to change beneficiary unless irrevocably designated
• Changes must be made in writing
• Change is effective when received by the insurer

Required Policy Provisions

Under Wisconsin law, life insurance policies must include: