Why do I need any insurance at all?
This article is to help you decide what you need or don’t need, and what you can or cannot have.
There are two types of insurances (by groups).
The first group is one you have to have it even if you don’t want or don’t need. Among these are the National Insurance (“Bituach Leumi”) and Compulsory Car Insurance (“Bituach Hova”).
If you have a pension fund or a “Kupat Gemel” in the bank you will have to have insurance. It is built into the plan whether you like it or not.
The second group is the “by selection” group where you decide what you want to buy. Among those are two sub categories.
The first sub category is I what I call it “the non free choice” group: You buy even if you don’t want! You can choose not to buy but the consequence is that you won’t be able to get what you want. Here are a few examples:
The life insurance and the home (building) insurance policy the bank “sells” to you when you take a mortgage. If you want that mortgage you will need the insurance; even if you don’t buy directly from the bank, you will have to buy from an insurance company.
The home (building and third party only) insurance many landlords oblige you to have if you want to sign their lease.
When opening a business, depending on the kind of business it is, you will need some form of insurance. For example a lawyer must have a malpractice insurance, some producers must have an insurance and so do exporters of all types of merchandise. You always have the choice: don’t buy the insurance, don’t do the business.
The second sub category is the “total free choice” group where you decide if you want to buy the insurance, you decide from whom you will buy it and you are the sole decision maker regarding the insurance policy.
The first example is the home insurance (“Bituach Dira”). You can decide if you buy only the insurance for the building (it always include third party liability) or you want to insure the belongings as well. You can also decide to include any “rider” (extras) in the policy and there are many of them today.
The second example is car insurance. By law all you need is the compulsory insurance policy and you can decide to add third party (“Bituach Tsad Gimel”) liability or a comprehensive insurance policy (“Bituach Mekif”).
The third example is a very common insurance sold mostly (but not only) by the “Kupat Holim” and it is a medical insurance called “Bituach Mashlim”. If you want to have it from your prime health care taker, the “Kupat Holim”, you must buy from the same “Kupat Holim” of which you are a member. This is not a compulsory insurance even if you have been told to the contrary.
They will also try to sell you another complementary insurance called “Bituach Siudi” (“nursing insurance”). You can read more in the link below but it is all in Hebrew:
http://ozar.mof.gov.il/hon/2001/insurance/siudi1.asp
Don’t think for a moment you can understand what is covered or not. Even if you are a genius or a lawyer, these policies are very hard to understand. The insurance is not very expensive but you should question yourself if you really need it.
The fourth and last example is the “travel insurance” (“Bituach Nessiot Le Hul”). When you buy a package including hotel and an airfare ticket or even when only purchasing the airfare, the travel company will most probably offer you insurance. This insurance can be bought with the “Kupat Holim” as well, on line in many sites and through an insurance agent. It is up to you to buy and from whom you buy it but be aware that many credit card companies give this insurance for FREE. Call them before you buy it for a fee.
You can and should buy an extra section for any special sporting or recreational activity such as skiing or mountaineering.
Be careful:
I strongly advise you all to have travel insurance when going abroad but you must be very careful with your answers regarding previous and actual health conditions.
If you don’t give precise answers you will be accepted of course because there is no way the person in the other side of the line can know if you telling the truth or omitting facts. However as soon as you have a claim, they will first of all have your medical file from Israel, or from any other country, brought before them before paying you for your claim.
Even if they did not ask about any specific condition you may have, it is your duty to volunteer the information.
They will most probably sell you the insurance policy even if you have some health problems now. It will cost you an extra premium but you will be insured. Please note that not every health condition is covered – pregnancy being one obvious example.
