Wisconsin Life Insurance, Annuity, and IRA Exemptions

Life Insurance and Annuities

If reasonably necessary to support the debtor, any policies on the life of someone whom the debtor, at the time of the insured’s death, depended on for support of him/herself or his/her dependents are exempt.  815.18(3)(f)(2)  To view this statute, please click here.

“[A]ny unmatured life insurance or annuity contract owned by the debtor and insuring the debtor, the debtor’s dependent, or an individual of whom the debtor is a dependent, . . ., and the debtor’s aggregate interest, not to exceed $150,000 in value, in any accrued dividends, interest, or loan value of all unmatured life insurance or annuity contracts owned by the debtor and insuring the debtor, the debtor’s dependent, or an individual of the whom the debtor is a dependent” are exempt.  There are some limitations on this exemption:

1.  “If the life insurance or annuity contract was issued less than 24 months before the applicable date, the exemption . . . may not exceed $4,000.”

2.  “If the life insurance or annuity contract was issued at least 24 (twenty-four) months but funded less than 24 (twenty-four) months before the applicable date, the exemption under this paragraph is limited to the value of the contract the day before the first funding that occurred less than 24 (twenty-four) months before the applicable date and the lesser of either the difference between the value of the contract the day before the first funding that occurred less than 24 (twenty-four) months before the applicable date and the value of the contract on the applicable date or $4,000.”  §§815.18(3)(f)(2) thru 815.18(3)(f)(3)(a)(b)  To view this statute, please click here.

IRA

IRA and ERISA qualified benefits are exempt.  To view this statute, please click here.

Miscellaneous

Proceeds received from Federal disability insurance benefit programs, 42 USC 401 to 433, are exempt.  To view this statute, please click here.

Proceeds from insurance on exempt property that has been damaged by fire or casualty of any nature are exempt for up to two (2) years from receipt are exempt.  To view this statute, please click here