• Premiums must be paid on the life insurance policy that is the subject of a life settlement until the insured dies. Find out who is responsible for paying the premiums and whether you may ever be responsible for the payment.
• If the life insurance policy is a group policy there is a risk that the employer or insurer may terminate the policy, and there may be no right to convert the original coverage to an individual policy, or there may be limitations in any conversion right. If the policy is converted there may be additional premiums.
• If the life insurance policy is term insurance the policy is issued for a certain number of years. If the insured outlives the term of the policy there will be no death benefit.
• Insurance companies may contest the validity of a life insurance policy for a period of two years from the date of its issue for a variety of reasons, including suicide or false information, which could result in denial of a death benefit claim.
• If the purchaser of a life settlement is the beneficiary only and not also the owner of the life insurance policy, there is a risk that the beneficiary could be changed or that the premium may not be paid.
• You should consult with a tax advisor to determine whether there may be a tax impact, particularly if money from retirement funds is used to purchase a life settlement.
Questions or complaints? Contact your insurance company or agent:
(Insurer name)
(Customer service)
(Address)
(Toll free telephone number, if available)
(Telephone number)
You may also contact the Wisconsin Office of the Commissioner of Insurance at 1-800-236-8517 or 608-266-0103; Email: ociquestions@wisconsin.gov. Ins 2.19Ins 2.19 Military sales practices. Ins 2.19(1)(a)(a) The purpose of this section is to set forth standards to protect active duty service members of the United States Armed Forces from dishonest and predatory insurance sales practices by declaring certain identified practices to be false, misleading, deceptive or unfair. Ins 2.19(1)(b)(b) This section does not create or imply a private cause of action for a violation of this section. Ins 2.19(2)(2) Scope. This section shall apply only to the solicitation or sale of any life insurance or annuity product by an insurer or insurance producer to an active duty service member of the United States Armed Forces. Ins 2.19(4)(a)(a) This section does not apply to solicitations or sales involving any of the following: Ins 2.19(4)(a)2.2. Group life insurance or group annuities where there is no in-person, face-to-face solicitation of individuals by an insurance producer or where the contract or certificate does not include a side fund. Ins 2.19(4)(a)3.3. An application to the existing insurer that issued the existing policy or contract when a contractual change or a conversion privilege is being exercised; or, when the existing policy or contract is being replaced by the same insurer pursuant to a program filed with and approved by the commissioner; or, when a term conversion privilege is exercised among corporate affiliates. Ins 2.19(4)(a)4.4. Individual stand-alone health policies, including disability income policies. Ins 2.19(4)(a)5.5. Contracts offered by Servicemembers’ Group Life Insurance or Veterans’ Group Life Insurance, as authorized by 38 U.S.C. section 1965 et seq. Ins 2.19(4)(a)6.6. Life insurance contracts offered through or by a non-profit military association, qualifying under section 501 (c) (23) of the Internal Revenue Code, and which are not underwritten by an insurer.