1. Relying only on cover from work
Group health cover from an employer is valuable, but it usually ends when you leave or change jobs. It may also have a modest sum insured for a whole family. If you are between jobs, or retire, you could find yourself without cover at the time you need it most.
Instead: consider a personal policy alongside your employer's cover. Buying it while you are younger and healthier also means fewer conditions to declare and earlier completion of waiting periods.
2. Choosing a policy on premium alone
A lower premium can be a sign of a smaller sum insured, a co-pay, a room rent limit or longer waiting periods. None of these are visible in the price, but all of them affect what you receive when you claim.
Instead: compare what each policy actually covers, its limits and its exclusions, before you compare prices.
3. Not declaring health conditions
It can be tempting to leave out a minor condition to keep the premium down. But if it is discovered later, the insurer may reject a related claim, or in some cases the whole policy.
Instead: declare your health, habits such as smoking, and medical history fully and honestly. It may cost a little more, but it protects your claim.
4. Mixing up insurance and investment
Many families buy policies that combine life cover with savings, expecting them to do both jobs well. Often they end up with less life cover than they need, and savings that grow more slowly than they hoped.
Instead: start by working out how much protection your family needs. A term plan is built purely for protection. Then think about savings and investments separately, as their own decision.
5. Too little life cover, or none
Many families pick a cover amount that sounds large but falls short once loans, children's education and years of daily expenses are added up. Others put off life cover entirely because it feels uncomfortable to think about.
Instead: estimate the amount based on your income, the years your family would need support, and any loans. Our life cover estimator gives a rough starting figure to discuss.
6. Forgetting about parents
Parents often depend on their children for medical costs, but are left out of the family's cover. Buying health insurance for older people can be harder and costlier the longer it is left.
Instead: look at parents' cover early. Depending on ages, a separate policy may suit them better than adding them to a family floater.
7. Letting policies lapse
A missed renewal can mean losing cover, losing a no claim bonus, or having to restart waiting periods with a new health policy. For vehicles, driving without valid insurance is also against the law.
Instead: keep a list of every policy and its renewal date, and set reminders. We can remind you too.
8. Not updating nominees
Life changes. Marriage, children and the loss of a family member can all mean the nominee on a policy is no longer right. An out-of-date nomination can delay a claim when your family can least afford it.
Instead: check nominees on every policy and investment after any big life event.
9. Not reading the policy when it arrives
Most people file a new policy away without reading it. Yet every new life and health policy comes with a free-look period, a short window to review it and return it if it isn't what you expected.
Instead: read the key sections when the policy arrives: what is covered, what isn't, the waiting periods and how to claim.
10. Keeping the family in the dark
A policy only helps if someone knows it exists. Families sometimes discover policies years later, or not at all.
Instead: keep a simple list of your policies, their numbers and whom to contact, and tell a trusted family member where to find it.
The common thread
Almost every mistake here comes from not quite knowing what a policy does. Taking a little time to understand your cover, and reviewing it as your life changes, avoids most of them.
This guide is general information. Coverage, terms, waiting periods and exclusions vary by policy and insurer, so always read the policy wording. Insurance is the subject matter of solicitation.