Frequently asked questions about insurance in Israel

There is no single insurance checklist that fits everyone. The right mix depends on family situation, children, mortgage or loans, type of work, income, medical situation and existing cover. The best place to start is by mapping what you already have — active policies, Har HaBituach data and a pension-clearinghouse report — and only then checking where there are gaps and where there is overlap.

An insurance company sells and supports its own products. A licensed insurance agent sees a broader portfolio view, can offer alternatives across several insurers subject to their active arrangements, and supports you during ongoing service and at claim time. An agent is not always cheaper — the value should come from the review, the explanation and the support.

In most cases a licensed agent is compensated by the insurance company or institutional body, subject to regulation and to their active arrangements, rather than directly by the client. That said, service types and compensation vary by product — so it's worth asking the agent up front how they are paid and whether anything is charged to you. There is no blanket promise that agent service is always free.

Usually yes. A periodic review helps catch duplicate insurance, policies that no longer fit, and management fees that drifted upward over time. In addition, after life events — marriage, a new child, a mortgage, divorce, moving into self-employment, or a change in medical situation — it is worth a targeted review independent of the annual cycle.

Policies you already have, Har HaBituach data from the Capital Market Authority, a pension-clearinghouse report, the latest payslip or an income estimate if self-employed, and details on mortgage or loans. Family-status and health-priority notes also help build a clear picture. Anything missing can usually be pulled together during the review itself.

Sometimes yes, subject to the fund regulations, the insurer's appointment rules and the specific policy. But consolidating with a single agent is not the goal — the goal is correct cover, fair pricing, accessible service and not cancelling an older policy that might actually be more valuable than expected. Sometimes it's better to leave a legacy policy in place and manage the rest in one place.

You need to compare terms — price, coverage amounts, exclusions, waiting periods, fee structure and the original underwriting conditions. An older policy may include improved terms that no longer exist in newer products, so automatically cancelling it for a cheaper quote can erode rights. A structured comparison is the basis for any decision — not a gut feel.

The public health basket is the baseline provided to every Israeli resident through the HMO. Shaban ("additional health services") is a supplementary service offered by the HMO itself — not an insurance policy with an insurance company — that extends the service basket subject to the plan's regulations. Private health insurance is a separate policy from an insurance company, with its own coverage, exclusions and underwriting.

No. Private health insurance does not replace the HMO and the public basket — it complements them. It may add cover for items outside the basket, private surgery in Israel and sometimes abroad, cover for medications outside the basket and additional services subject to the policy. You remain a member of an HMO even if you hold a private policy.

These are medications that are not part of the public drug basket and that can be very expensive. Cover for such medications in a private health policy may reimburse part or all of the cost, subject to ceilings, exclusions, the medication's classification and the policy's terms. Approval of a medication by the Ministry of Health is not a guarantee that it will be covered by your policy — the wording must always be read.

It can — depending on the policy and the specific extension. Some policies include an abroad-surgery track within a defined list of countries, subject to the insurer's medical-committee approval, to exclusions and to ceilings. Others only cover private surgery in Israel. The terms should be read carefully before relying on the cover.

There is no legal requirement. The decision depends on the family situation, existing cover — Shaban, a parents' policy and sometimes employer cover — and the specific needs. Child cover usually focuses on medications, surgeries, diagnostics and benefits from lower underwriting thresholds at a young age.

A pre-existing condition can result in a specific exclusion in the policy, an additional premium or a refused application — subject to the insurer's underwriting rules. Sometimes an older policy that has already passed underwriting actually protects you more than a new offer. Before cancelling or replacing, all the implications need to be checked.

Need depends on financial dependants, debts and the income your family would retain. With no dependants or debts, need may be lower. Age and health affect entry terms, but buying early does not guarantee a fixed premium.

There is no single number. A reasonable calculation considers the size of the obligations (mortgage, loans), the income that needs to continue supporting the family, the children's ages, existing savings and any survivors cover already inside the pension. A smaller sum on a well-designed policy is sometimes better than a large amount chosen without analysis.

Mortgage life insurance is a requirement of the bank and decreases with the remaining mortgage balance — the payout goes to the bank. Regular (private) life insurance is paid to the beneficiaries chosen by the insured, and the insured sum is either fixed or chosen separately. The two products are not substitutes for one another.

A single person supporting parents or other dependants may need cover. Without dependants, need may be lower. Check the premium schedule and terms for increasing cover; a future increase may require medical underwriting and is not guaranteed.

Usually yes. The premium is based on age, medical condition, insured sum, policy term and underwriting. The later you join — and the less favourable the medical situation — the higher the premium is likely to be, and sometimes with exclusions. Reviewing the topic early avoids surprises later.

There is no law that forces the borrower to buy mortgage insurance, but banks usually require life insurance and building insurance as a condition of the loan. Without the appropriate cover the bank generally won't release the funds. This requirement is legal and appears in the mortgage agreement.

No. You can buy the insurance from any insurer, subject to meeting the bank's requirements — coverage amounts, lien structure and assignment paperwork. The bank's offer is just one of several options. Comparing offers from several insurers before signing is common and entirely legitimate.

Mortgage building insurance usually covers physical damage to the home itself — walls, floor, roof and fixed installations — from fire, water damage, storms, earthquakes and similar perils, subject to the policy terms and the insured sum. It does not cover contents (furniture, appliances), which are usually insured separately in a broader home policy.

Yes, you can replace the insurance mid-term, subject to the bank's approval of the new policy and to re-setting the liens. You need to make sure there is no coverage gap between the end of the old policy and the start of the new one, and that the medical situation has not changed in a way that would make the new underwriting less favourable.

Mortgage life insurance is designed to cover the outstanding loan balance. As you repay the mortgage, the outstanding balance falls — and so the insured sum follows the loan amortization schedule. This is also why it is not a substitute for a private life policy, which is meant for the family and not for the bank.

The annual or quarterly report from the fund shows two numbers: the fee on accumulation (annual percentage of the balance) and the fee on each new deposit. You can also pull a pension-clearinghouse report to see every product in a uniform format. A real comparison is based on the current report — not on a phone offer.

A study fund is a savings vehicle that usually allows withdrawal without capital-gains tax after six years, subject to the ceilings defined by law. It is not a substitute for a pension — there is no monthly annuity at retirement and no built-in survivors or disability cover. Self-employed savers also receive a tax benefit on the deposit side, subject to the annual ceiling.

Yes. Since 2017 there is a mandatory pension obligation for self-employed people aged 21–60 who are registered as a VAT-dealer (Osek) for at least 6 months, subject to exemptions. The deposit is a percentage of taxable annual income, in two layers. As of 2026 and according to Kol Zchut, the rates are 4.45% and 12.55% depending on the layer.

A provident fund for investment (Kupat Gemel le-Hashka'a) is a savings vehicle managed by an institutional body, with defined fees and certain tax benefits. A savings policy (Polisat Hisachon) is a savings product from an insurance company, with a different fee structure and slightly different withdrawal flexibility. Neither is a pension — there is no annuity and no built-in survivors or disability cover.

Technically yes, but a withdrawal before the usual six-year mark is taxable under the tax authority's rules. The capital-gains exemption is lost on the withdrawn amount. For specific cases — recognised professional training or retirement age — there are easier paths, but before any early withdrawal it is worth talking to an accountant.

The investment track determines how the funds in the pension are managed — the split between equities, bonds, international assets, conservative tracks and sometimes thematic or halacha-compliant tracks. The default track is rarely the one that fits a specific person's age and risk tolerance. Past returns do not guarantee future returns.

Mandatory insurance (Bituach Hova) is required by law and covers bodily injury — you cannot legally drive without it. Third-party (Tzad Gimel) covers damage you cause to other people's property (typically another vehicle), subject to the policy. Comprehensive (Mekif) usually covers damage to your own vehicle — accident, theft, fire, natural perils — plus third-party damage, subject to the policy terms and deductibles.

It depends on the car's value, the deductible, your ability to pay for a repair out of pocket and the risk profile of where you park and use it. As the car ages, its value drops and the payout in a total-loss event shrinks — sometimes only third-party plus mandatory makes sense. A simple economic check helps decide.

First check there are no injuries and call emergency services if needed. Then document — photos, the other party's details, witness details — and avoid signing on-the-spot statements of liability. Notify your agent or insurer, file a traffic-accident report with the police if required, and keep copies of everything.

Home insurance usually includes two main components: structure (walls, roof, floor, fixed installations) and contents (furniture, appliances, valuables) — each with its own insured sum and exclusions. You can also add extensions for third-party liability, employer liability for household help, broader water-damage cover and more, subject to the policy.

Building insurance covers the physical home — walls, roof, fixed plumbing and electrical systems. Contents insurance covers what's inside — furniture, appliances, clothing, valuables. They are insured separately, with different sums, and homeowners sometimes purchase only one without realising it.

Building insurance is usually the landlord's responsibility, but tenants can buy their own contents insurance to protect furniture and personal items. Certain rental agreements also require the tenant to take out third-party liability cover or cover for damage caused to the property. It is worth reading the contract and clarifying which cover exists — and on whom.