Your Insurance Doesn't Cover That: Hidden Dangers in the Fine Print

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If we're savvy and choose to take responsibility for our personal finances, we buy insurance -- for our homes, cars, health, and life. And while it might seem like you're spending a lot of money on nothing -- especially if your life is relatively claim-free -- it's good to remember that what you're really buying is protection: coverage for your assets, your income stream, your dependents, and more.

A common mistake, though, is to overestimate what your coverage really protects you from. All the risks that are excluded from prevalent insurance policies are spelled out in the fine print. But when's the last time you scoured your insurance documents?

Here are some examples to note so that you don't make a costly mistake assuming you're covered for a potential mishap.


Motley Fool contributor Selena Maranjian, whom you can follow on Twitter, holds no position in any company mentioned.


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albert

How can a LIFE INSURANCE COMPANY like MASSACHUETTS LIFE INSURANCE COMPANY issue checks to a dishonest AGENT , who had his license revoked in JEFFERSON CITY,MISSOURI, for stealing is beyond me. I can not obtain any satisfaction from anyone.
Albert Kandel
10583 Thomas Ridge Ct.
Chesterfield, Mo, 63017

January 13 2013 at 11:42 AM Report abuse rate up rate down Reply
ha6ai

Obama\'s propagandists have lied about \"pre-existing\" conditions not being covered by medical insurance.

They lie.

All group medical insurance covers pre-existing conditions. (That is the vast majority of insurance.)

All disclosed pre-existing conditions are usually covered for individual policies (certainly for those which new policies by previoius insureds.

Even if some designated pre-existing conditions are specifically not covered, there are time limits, after which they are covered.

The real issue are those RARE situations where applicants fail to disclose specific pre-existing conditions, and they require treatement within a specific time after the policy is written. Even then, if enough time goes by, and there was no fraud, there is still coverage.

The bottom line is that socialized medicine, which DENIES treatments considered \"too expensive\" for elderly patients, or which the \"OBAMA Panel\" (aka \"Death Panel\") thinks are \"too expensive\" is the REAL danger. EVERYONE will be DENIED medical care which they WOULD have gotten, because of Obamacare.

Obamacare is the not-so hidden DANGER to EVERYONE, particularly MEDICARE patients..

September 29 2012 at 10:27 PM Report abuse +1 rate up rate down Reply
kafienkarl

Insurance company's favorite word 'no'

September 27 2012 at 10:45 PM Report abuse rate up rate down Reply
NIGHTSUB

They just take the money and run.

September 27 2012 at 9:51 PM Report abuse +1 rate up rate down Reply
ATM

I just received new "fine print" from State Farm. After reading it, I am not so sure that I will stay with them - I have been with them since the 1980's, but it seems the insurance companies like to change the terms of service and coverage - kind of like credit card companies and wireless companies do.

It is time to look for a new insurance company for me - anyone have good recommendations?

September 27 2012 at 9:14 PM Report abuse +1 rate up rate down Reply
bdyftns

You mean if a Nuke hits my house my insurance doesn't cover it? What a rip off.

September 27 2012 at 7:09 PM Report abuse +1 rate up rate down Reply