|
|
State of Wisconsin Wisconsin Funeral and Cemetery Aids Program Manual Release 22-01 May 2, 2022 |
|
|
State of Wisconsin Wisconsin Funeral and Cemetery Aids Program Manual Release 22-01 May 2, 2022 |
4.1.1 Reduction for WFCAP Applications Submitted Separately
4.1.2 Reduction for Combined WFCAP Applications
The WFCAP program is authorized under Wis. Stat. § 49.785(1m) (d)
WFCAP payments will be reduced for decedents who are insured by a policy(ies) with a face value of more than $3,000 issued on or after 10/3/2016. An eligible WFCAP payment will be reduced by one dollar for every dollar the death benefit of the policy exceeds $3,000. The reduction is applied proportionately to funeral and cemetery/crematory expenses based on two possible application scenarios, discussed in sections 4.1.1 and 4.1.2 below.
When funeral home and cemetery/crematory expenses are submitted in separate applications, the reduction is proportionate to the total available funding ($2,500). Total available funding is the percentage of the maximum policy limits. The funeral home payment will be reduced by 60 percent and the cemetery/crematory payment 40 percent (refer to example 1).
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Example 1: Mr. Smith is named as the insured on a life insurance policy with a death benefit of $4,000. The total WFCAP payment will be reduced by $1,000 because that is the amount that exceeds $3,000. The service providers submitted separate WFCAP applications, so the reduction applies proportionately based on the total available WFCAP funding (60 percent for funeral homes and 40 percent for cemeteries/crematories).
The funeral home applied and was approved for a WFCAP payment of $1,000 for unmet funeral expenses. After reducing the funeral home’s payment by 60 percent of the excess life insurance amount of $1,000, the funeral home is eligible for a $400 WFCAP payment.
The cemetery applied and was approved for a WFCAP payment of $1,000 for unmet cemetery expenses. After reducing the cemetery’s payment by 40 percent of the excess life insurance amount of $1,000, the cemetery is eligible for a $600 WFCAP payment. |
When funeral home and cemetery/crematory expenses are submitted on one combined WFCAP application, the reduction is proportionate to the total application amount funding for each service provider. Therefore, the percentage reduction will vary based on the amount each service provider applies for (refer to example 2).
|
Example 2: Mr. Smith is named as the insured on a life insurance policy with a death benefit of $3,500. The total WFCAP payment will be reduced by $500 because that is the amount that exceeds $3,000.
When service providers submit one combined application, the reduction is proportionate to the total requested funding. Each of the service providers requested and were approved for a WFCAP payment of $1,000 for unmet expenses, resulting in a total WFCAP payment application request of $2,000. Each service provider requested 50 percent of the total requested funding. Therefore, each service providers’ WFCAP payment will be reduced by $250, which is 50 percent of the excess life insurance amount.
|
|||||||||||||||||||||||||||||
This page last updated in Release Number: 22-01
Release Date: 05/02/2022
Effective Date: 05/02/2022
