Q: I need long-term care insurance but have a health history that could prevent me from being approved. If I don't tell the agent and a two-year exclusion period ends, would I have coverage?
A.K., 66, Windermere
A: By not disclosing known health issues to the insurance company, you are committing fraud. The two-year exclusion period is intended for lapses of memory regarding something that happened a long time ago, not for deliberate omission. The result could be that you pay premiums for 15 years, then file a claim and the insurance company learns the condition was present when you applied. While they may not have fraud charges filed against you, they would most likely deny the claim and cancel the policy.
Beth Fleming Brown
Q: Other than my mortgage the only debt I have is a $3,000 line of credit. I have $6,000 in a money market account. Should I pay off the line of credit?
L.O., Longwood
A: Yes, I would suggest you use $3,000 from the money market account to pay off the line of credit and then begin to build the money market account balance to around three times the amount of your monthly expenses.
Randy Harrison
Have a question? E-mail askanexpert@fpafla.com. Include your name (only your initials will be printed), hometown and phone. Questions are answered by certified financial planners from the Central Florida chapter of the Financial Planning Association. Answers are for educational purposes only; you should also consult a financial professional. Questions and answers may be edited for space considerations.
