10 Best Life Insurance Companies in Wisconsin
Key Terms
- Life insurance in Wisconsin is crucial for safeguarding loved ones, with options like term, whole, and universal life policies.
- Financial advisors recommend coverage between 10X to 20X your annual income to ensure financial security for beneficiaries.
- Understanding Wisconsin’s insurance laws, such as free look periods and grace periods, helps ensure suitable policy choices.
Affectionately known as the Badger State, Wisconsin is nestled in the northern Great Lakes region, bordered by Michigan, Illinois, Minnesota, and Iowa. Home to 5.85 million people, it ranks as the 20th-most populous state, with Milwaukee as its largest city and Madison as its capital.
According to the Centers for Disease Control and Prevention (CDC), the average life expectancy in Wisconsin is approximately 77.7 years which is lower than the national average life expectancy, which is currently around 79.05 years in the United States. Over the past few years, the leading causes of death in Wisconsin have been heart disease, cancer, and COVID-19. The homicide rate in Wisconsin is about 7.8 homicides per 100,000 residents, which is higher than the national average of 7.5.
According to the U.S. Bureau of Labor Statistics, in Wisconsin, the 90th percentile income is currently $94,850. The median income in the state is roughly $45,000. Most financial advisors recommend acquiring a life insurance plan that covers your loved ones for between 10X and 20X your yearly salary. In Wisconsin, this amounts to around $948,500 – $1,897,000 for most affluent earners in the region.
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How life insurance works in Wisconsin
Life insurance coverage is easy to understand. Basically, you pay a premium, and the insurance company promises to pay a lump sum to your beneficiary designations if you die. It’s like most other types of insurance like health insurance, in the sense that you are insuring against an unlikely but catastrophic event.
There are three main types of life insurance that you may want to consider: term life insurance, whole life insurance, and universal life insurance. Term life insurance pays a benefit to your beneficiaries if you die during the term of the policy. The term is typically 10, 20, or 30 years, and the benefit amount is fixed. If you die after the term expires, your beneficiaries do not receive anything.
Whole life insurance pays a benefit to your beneficiaries whenever you die, regardless of when that is. You pay a higher premium for whole life insurance than for term life insurance because the insurer knows that it will have to pay a benefit eventually. Whole life insurance also has a cash value that builds up over time. Depending on your policy, you may be able to borrow from this cash value as annuities or pay your premiums with it.
Universal life insurance is another type of whole life insurance that has some flexibility built into it. With universal life insurance, you can adjust your premium up and down as needed, and you can also adjust the death benefit amount up or down without having to cancel and reapply for a new individual policy.
There are also group life insurance policies offered by companies to their employees, and insurance plans through the Wisconsin retirement system (WRS).
Most people should stick to cheap and simple term life insurance. It’s easy to understand and it gets the job done. When in doubt, your best bet will be to consult with an independent insurance agent. A licensed independent insurance agent will be able to help you understand your options and find the best policy for your needs and budget.