Insurance is supposed to be there when you most need it.
It should pay off the mortgage should you die, cover the bills if you fall critically ill, or pay for daily nursing should you become permanently disabled.
And yet, each policy is filled with ‘‘exclusions’’ and ‘‘restrictions’’ on when claims will, and will not be paid.
Don’t get me wrong. I love insurance. My dad, who took his insurance seriously, died young, so I know the value to a family.
But you have to approach insurers with your eyes wide open, and that means reading the policies you buy to ensure you know what you are covered for, and the times when insurers will decline your claim.
Reading your policies is the only cure for the magical thinking that many people bring to insurance, which pretty much amounts to this: If something bad happens, the insurer will pay.
Well, this top 10 should reveal that that is not always true. Know, don’t guess
Read your policies
Send in your medical notes
You do not always need to have been charged for an insurer to consider you were committing a crime. Sometimes, your crime has to be ‘‘materially’’ illegal. Keep those speed and blood-alcohol levels down while driving.
Some policies, such as travel insurance, require a level of common sense. Reckless behaviour, like a selfguided trip around a Manila slum, may not be viewed very favourably at claims time.
‘‘Insurers prefer you not to do things with a high chance of death or injury.’’
Insurers prefer you not to do things with a high chance of death or injury. Rioting is one, as is heading off to war, or getting blown up by a terrorist. And yet, some of the wording on some life insurance policies is very broad. Just being caught in a riot, without being an instigator, can be enough. Should you die, or be hurt using them, your