Q. Can I drop my daughter that finished college and got married?
A. Sure, but you probably have to wait until the open enrollment period at work – that’s when you can generally add or drop dependents.
Is that going to leave her uninsured though? Is she eligible for another group health plan? She can stay on your health plan until she’s 26, even if she’s married. Here’s more on getting dropped from a parent’s health plan.
Q. Is there an insurance policy that pays off the mortgage when one of the insureds dies?
A. Mortgage life insurance specifically pays off a mortgage. But I wouldn’t buy that. Instead I’d buy a regular term life insurance policy that covers the time period of the mortgage and any other large debts. Then the beneficiary can use the benefit for whatever is needed, be it the mortgage, final expenses, etc.
Here’s a good discussion about the pros and cons of mortgage life insurance from Cash Money Life.
Q. Can my insurer cancel my health insurance the same day I’m let go at work? I thought they had to by law give you till the end of the month?
A. No, there’s no law like that. Health insurance typically ends on your last day of employment. However, you should be offered COBRA, unless your company has less than 20 employees. COBRA is your opportunity to continue to buy the health plan yourself.
The employer’s health plan administrator has to notify you of your rights to COBRA within 14 days. We have more information on your COBRA rights.
Q. My son, 14 years old, is going to backpacking for 10 days. We are looking to insure him for any possible accident.
A. A good health insurance policy should be sufficient – that would cover broken legs, infections, etc.
If you’re thinking something more severe might be possible, then maybe this trip isn’t the best idea.
Q. Will a life insurance company pay the benefit if a policyholder has been paying nonsmokers premium and is a smoker and dies of lung cancer after the two year probation period?
A. If the insured hid his smoking at the time of the application, then yes, it’s possible that the life insurer could deny the claim because there was misrepresentation (meaning fraud) on the application.
Occasionally someone will start a bad habit after his life insurance policy is in force. If someone started smoking after the policy was issued, the insurer should not deny the claim.
That two-year period is called the contestability period.
Here’s more on hiding smoking from life insurance companies.
Q. If a parent has you on a life insurance policy can you be removed?
A. I assume you mean your parent owns a policy on your life and the parent is the beneficiary?
No, you can’t force them to remove you. They are the policy owner and they have all legal control over the policy, not you.
I know, crazy, right?