Mixing investment products with insurance (e.g., buying insurance primarily for returns). Choosing term life vs. whole life without understanding the difference. Buying minimal health plans that don’t match actual healthcare needs. Get Higher Payouts on Commercial Property Insurance Claims in California. Ignoring exclusions leads to denied claims, which can feel like a betrayal—but the insurer is simply following the contract. Always review exclusions carefully and consider add-ons (riders) to fill important gaps. Not all insurance products serve the same purpose, yet many buyers choose policies based on marketing or recommendations without understanding their function.