After years in which Israeli citizens have accumulated 6.5 million duplicate/double insurance policies, reform in the field allows them to be disposed of, reducing the policies by hundreds of shekels a month
The situation is familiar to most of us: The phone rings in the middle of a working day, on the line an insurance company sales representative. "Only today, special sale, life insurance, illnesses or personal accidents for only a few dozen shekels a month."
Insurance companies know exactly how to play on our biggest fears and just to be sure we are tempted to purchase more insurance, even if we don't quite understand why it is good. After several such phone calls, many people will find themselves with a jam-packed, double, expensive and unnecessary insurance portfolio.
The phenomenon has become so widespread, and according to the Commissioner of Insurance, there are 6.5 million double insurance policies in Israel. "Every policy we buy, whether it's health, life, long-term care or a mortgage, is a fundamental part of protecting the family from various catastrophes, but having double or inappropriate insurance is like throwing money away for free," says Yoav Shtill, an insurance consultant and expert."
Today, after years when insurance companies have sold double and expensive policies, there are advanced technological means that allow ordering, optimizing the insurance portfolio, adjusting it to the needs of the family and reducing its cost by hundreds and sometimes thousands of shekels a month," explains Shtill.
A family saves NIS 5,400 a year
"Recently, a family from Raanana came to us who spent NIS 1,100 on mortgage insurance, life insurance, and personal accidents. Thanks to the new transparency in the field, we could easily find all the duplicates and see exactly where the insurance portfolio can be optimized.
"During the consultation, we were able to significantly reduce mortgage insurance, increase and lower life insurance coverage, and we found deductions for personal accident insurance, which of course we eliminated. They were paying NIS 5,400 in unnecessary payments to insurance companies per year."
" Most people have old and expensive policies
"Not surprisingly, most of the public is confused by the different policies. For example, the Israeli health insurance market is teeming with products and policies featuring health funds and private insurance companies – each with different elements, and it is very difficult to follow the fine print and understand exactly what each one needs and at what stage of life."
When we come to build an insurance portfolio, it is important to understand what the insured's needs are and what his/her life circumstances are.
"The goal is to maximize coverage – at a minimum cost"
"Every day we see families spending hundreds of shekels a month on unnecessary insurance that they don't even know they have. From our experience, most people have expensive policies that don't fit them anymore," he explains.
"We need to understand that needs are constantly changing too: there are new treatments, new drugs, aging, and family composition. You should consult with a professional who is not associated with one of the insurance companies, and their only interest is in getting the cheapest case that can provide a broad and family-friendly answer.
"Maximize coverage with a minimum spend"
The reform to this market is welcomed and works for the citizens, so it is important to take advantage of it," explains Shtill. "Nobody wants to find themselves paying double the money to a variety of insurance companies and then, as a matter of fact, realize that the coverage they purchased is not at all appropriate and irrelevant to their lives."
"Insurance is an important tool for maintaining family security and we all must have insurance that protects us if we need it."