What counts as overlapping insurance?

In simple terms, overlapping insurance may exist when one person has two or more coverages that appear to protect against the same risk. Examples may include two private health policies with a similar component, workplace group coverage alongside a private policy, or a private policy alongside an existing health-fund supplementary arrangement.

But the word “duplicate” can be misleading. Two policies may have similar names and still differ in terms, insured amounts, exclusions, policy periods or payment mechanisms.

How to identify possible overlap using Har HaBituach

Har HaBituach is a free Israeli government service that brings together information about insurance products purchased from Israeli insurance companies. It can provide a consolidated view of policies, coverage periods and prices, and help you reach the relevant insurer account or documents.

When two products appear in the same category, note the following:

• The insurance company and policy number.
• Whether the policy is private or group-based.
• The exact name of each coverage component.
• Whether one policy comes through an employer, health fund or another arrangement.

Then review the policy documents themselves. That is where the important answer is found.

Indemnity versus fixed compensation: a distinction to understand

Health insurance may use different payment mechanisms. In broad terms, indemnity-based coverage reimburses eligible expenses, subject to the policy terms and limits. Fixed-compensation coverage pays a defined amount when the insured event described in the policy occurs, subject to its conditions.

Two policies that look similar are not automatically redundant. In some compensation-based products, more than one policy may provide separate benefits. The Capital Market Authority has addressed the distinction between overlapping indemnity coverage and compensation products. Before anyone recommends cancellation, ask: what type of coverage is this, and how does each policy pay?

Seven things to check before cancelling a policy

1. Is the coverage genuinely identical?

Compare the name of the coverage, the definition of the insured event, insured amounts, deductibles, limits, providers, exclusions and every material condition. Similar names are not enough.

2. Is it a private policy or a group policy?

Coverage through an employer may be attractive, but it can depend on continued employment or on the group arrangement. Before cancelling a private policy, understand what happens if the group arrangement ends.

3. When was the older policy purchased?

An older policy may contain terms or rights that differ from products currently available. A newer option may look cheaper or more modern, but the comparison must be complete.

4. Would you need new medical underwriting to rejoin?

A change in health since the original enrolment may affect whether new coverage is available or the terms on which it is offered. Do not cancel existing coverage before understanding the status of the proposed replacement.

5. Is there a waiting or qualifying period?

If a replacement policy has a period during which some coverage is not yet active, cancelling the previous policy immediately may create a gap.

6. What is the insured amount under each policy?

In products based on fixed compensation, two policies are not necessarily unnecessary duplication. The insured person may have deliberately chosen a higher total benefit. Check the need and the cost.

7. How much are you actually paying for the overlap?

Sometimes the apparent duplication is only a small part of a broader policy that includes other coverages. Understand the cost of the overlapping component itself, not just the price of the entire policy.

What should not be cancelled in a hurry?

Take particular care with an older policy, a policyholder whose health has changed, group coverage that may not last indefinitely, or a policy containing several components that do not all overlap.

Before cancelling, confirm whether the alternative has been approved and is already in force. Do not assume that an application, quote or verbal assurance means the new coverage is active.

A simple example: two policies that look alike

Imagine a couple finds two health policies under one person’s name in Har HaBituach. The first is a private policy purchased years ago. The second was added through a new workplace.

The quick conclusion might be: “We are paying twice, so let’s cancel the older policy.” But a closer review shows that the group policy depends on continued employment, while the private policy is held personally. Some of the coverage components are also different.

This does not mean both policies must be kept. It means the right decision starts with a structured comparison — and only then can you decide whether to reduce, change or cancel coverage.

Checklist: before cancelling coverage that looks duplicated

1. Download a current overview from Har HaBituach.
2. Obtain the policy details for both policies.
3. Mark the coverage components that genuinely overlap.
4. Check whether each component is indemnity-based or fixed-compensation.
5. Compare insured amounts, exclusions, deductibles and waiting periods.
6. Check whether either policy is group-based or linked to employment.
7. Find out whether new medical underwriting would be required to rejoin.
8. Confirm that the alternative is approved and active before cancelling existing cover.
9. Only then decide whether cancellation saves money without harming the protection you need.

Official tools that may help

• Har HaBituach — insurance portfolio information.
• My Money — personal financial information.
• Ministry of Finance — general insurance guide.
• Ministry of Health — Kol Habriut service.

About the author

Maxim Krasovitsky is the director of MAXIMUS and a licensed pension insurance agent in Israel, licence no. L-00132932.

This article is general information only. It is not personal insurance or pension advice, a recommendation to cancel or purchase a policy, or a promise of any result. Before changing or cancelling coverage, review the policy terms, the insured person’s circumstances and the proposed alternative.