health insurance
Also called: asuransi medis
Insurance that covers medical treatment and hospitalization costs according to policy terms.
What it means
Health insurance is an insurance product that covers part or all of the insured's medical costs according to the policy. Its benefits can be reimbursement of hospital costs, outpatient care, or certain services. In Indonesia, this product is available from private insurance companies as well as social security schemes. Each product has a different list of benefits, exclusions, and waiting periods.
Why it matters for families
Medical costs can rise quickly and drain family savings in a short time. Health insurance helps keep children's education funds and emergency funds intact when a family member falls ill. However, families need to check whether their usual hospital is in network, what the annual benefit limit is, and what the exclusions are. Choosing the wrong product can make claims fall short of expectations.
Example
Suppose a family with an income of Rp10 million per month sets aside about Rp800 thousand for health premiums. When the mother needs surgery costing Rp25 million, most of the cost is covered and the family savings are not drained. This figure is only an illustration.
Common misunderstanding
Many think private health insurance is the same as the state social security. The correction: both have different rules, benefits, and coverage, so understand both before choosing.