After years in the insurance industry, there are things I see repeating themselves. Clients who come to me after their claim was rejected, or who discover they're paying double for the same coverage. Most of the time it's not because the insurance company is bad - it's because of mistakes that could have been avoided.
Buying Insurance Based on Price Alone
We all love to save money, but with insurance, the cheapest price doesn't always mean a good deal. A cheap policy may come with high deductibles, various exclusions, or low coverage limits. You don't see that in a quick price comparison.
In my experience, policyholders who chose the cheapest policy often end up paying more out of pocket during claims - because of deductibles and coverage that simply wasn't in the policy.
- Compare at least 3 quotes - but also read the fine print
- Check the deductible amount for each type of damage
- Ask your agent directly: What's not covered here?
Not Reading the Policy
I know this sounds obvious, but most people don't read their policy before signing. They rely on what the agent said, or assume they understand what they're buying. Then when the claim comes, it turns out there's a waiting period, or an exclusion for a pre-existing condition, or a notification requirement they missed.
“I always tell my clients: the policy isn't just a piece of paper you sign. It's a legal contract that determines what happens when you need help. At least the first few pages - worth reading.”
— Edi Efraimov
- Focus on the first pages - that's where coverage and amounts are detailed
- Look for the exclusions section
- Something unclear? Ask before signing
Duplicate Insurance Without Knowing
Here's something I see all the time: a client with travel insurance from their credit card, who also bought separate travel insurance. Or private health insurance that covers things already covered by their health fund's supplemental insurance. According to Capital Market Authority publications, millions of policies in Israel are duplicate coverage - people paying twice for the same thing without knowing.
- Check what insurance you have through your credit card
- Check what your health fund's supplemental insurance already covers
- Ask your insurance agent to do a comprehensive review
Lying on the Health Declaration
When filling out a health declaration, there's temptation to "forget" to mention medical conditions to get a lower premium. I understand why people do it, but it's a mistake that can cost dearly. Insurance companies check - especially during a claim.
Under Israeli insurance law, if it's discovered that you hid material medical information, the claim can be rejected and the policy may be canceled retroactively. In some cases it can even be considered fraud.
- Tell the whole truth - even things that seem unimportant to you
- Better to get a policy with an exclusion than to be left without coverage
- Consult with an agent before filling out the declaration
Buying Mortgage Insurance from the Bank Without Comparing
When taking out a mortgage, the bank offers life insurance and property insurance as part of the deal. Most people just sign - they're busy closing the deal and don't think about it too much.
What's important to know: the law allows you to choose any insurer you want, not just what the bank offers. From comparisons I do for clients, mortgage insurance through an independent agent can be significantly cheaper than through the bank - sometimes by thousands of shekels a year.
“Banks earn commissions on mortgage insurance. That's legitimate from their perspective, but you don't have to pay it.”
— Edi Efraimov
- Request quotes from 2-3 insurance companies before signing
- You can switch mortgage insurance even after you've started paying
- The bank must approve any insurer that meets basic requirements
Not Updating Insurance After Life Changes
I've seen cases of people who divorced and didn't remove their ex-spouse from the beneficiary list. Or couples who after two children still have the same life insurance from when they were single. Marriage, divorce, children, job change - every such event should trigger an insurance review.
- Review your insurance at least every two years
- After every significant event - check what needs updating
- Update beneficiaries after marriage, divorce, or birth
Neglecting Disability Insurance
Many people take care of life insurance and neglect disability insurance. But think about it for a moment: if tomorrow you can't work due to illness or accident - where will the money come from for the mortgage? For bills? For the kids?
Disability insurance gives you a monthly salary in such cases. Part of your pension already includes partial coverage, but usually it's not enough to maintain your standard of living.
- Check what you already have in your pension
- Consider supplementing coverage up to 75% of income
- Pay attention to "own occupation" vs "any occupation" definitions - the difference is critical
Thinking Travel Insurance is Unnecessary
"I'm flying to Europe for a week, what could happen?" - I've heard this hundreds of times. Hospitalization abroad costs a lot of money - tens of thousands of dollars for surgery, and medical evacuation to Israel can reach hundreds of thousands. Without insurance, you pay out of pocket.
Travel insurance costs a few dozen shekels per week. Not worth skipping.
- Buy insurance right after booking your flight - cancellations are also covered
- Make sure medical coverage is sufficient (at least $1 million)
- Have pre-existing medical conditions? Report them
Not Documenting Damages Properly
Accident happened? Break-in? The first thing most people do is call the insurance. But before calling - document. Photograph everything from all angles, before cleaning or repairing. Without proper documentation, the claim may be rejected or approved for a lower amount than you deserve.
- Photograph everything - from all angles, before cleaning or repairing
- Keep receipts for every expense
- Notify the insurance company quickly - there are time limits
Skipping an Insurance Agent
In the internet age, it's easy to think you can do everything yourself. And you can buy insurance online - but an insurance agent gives you something a website can't: advice tailored to your situation, real comparison between companies, and someone who fights for you when there's a problem with a claim.
“The real value of an agent is revealed in the moment of truth. When you file a claim and there's a problem - who will fight for you? A website?”
— Edi Efraimov
What's the Next Step?
If you've read this far and identified one or more mistakes you're making - you're not alone. Most people don't think about their insurance until they need it.
Want to check your insurance coverage? I'd be happy to do a review - no cost, no obligation.
