Most standard policies define a business as a "trade, profession or occupation engaged in on a part-time, full-time or occasional basis" that in the last 12 months earned $2,000, according to Christine G. Barlow, a Chartered Property Casualty Underwriter and associate editor of FC&S Online, which interprets insurance policies for the industry.

Talk to an insurance agent about the type of business insurance you need.

4. Never telling your beneficiaries about your life insurance policy

Imagine paying thousands of dollars in premiums for life insurance, but your loved ones never collect a dime after you die. Unfortunately this happens all too frequently because policyholders fail to give their beneficiaries the information they need to file a claim.

Family members often report knowing there was a policy but having no idea the type, amount or company. Make it easy for your loved ones. Give your beneficiaries the company name and policy number and let them know where you keep your important documents.

Here's how to find lost life insurance policies.

5. Buying a health insurance plan without reading the details

Starting in 2014, health insurance plans will be standardized. Even the most basic plans will have to include certain benefits under the Affordable Care Act.

But until then, individual plans vary widely. Some, for instance, don't include prescription drug coverage. Some plans might not have your doctors in their provider networks. And many individual health plans don't cover maternity care. According to the most recent figures from the National Women's Law Center, only 13 percent of individual health plans available to a 30-year-old woman across the country provided maternity coverage in 2009.

Here's how to buy the worst health insurance plan ever: 7 scenarios to avoid.

Bottom line: Read the benefits carefully before you buy health insurance, and don't buy solely by price. Think about your health care needs and find a plan to match.

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