deductible
Also called: risiko sendiri
The amount you pay yourself first before insurance starts paying.
What it means
A deductible, or own risk, is the amount of cost the customer must bear first before insurance starts paying. For example, if the deductible is Rp500 thousand, then costs up to that amount are your own responsibility. After passing that limit, the insurance company covers the rest according to the policy. This provision is commonly found in health and vehicle insurance.
Why it matters for families
The deductible affects the size of premiums and unexpected family expenses. The higher the deductible, the cheaper the premium usually is, but the family must prepare cash funds when illness or an accident occurs. If not understood, families may assume all costs are covered by insurance and be surprised when they have to pay themselves. Match the deductible to the emergency fund available.
Example
Suppose a health policy has a deductible of Rp1 million per year. When the hospital bill is Rp4 million, the family pays Rp1 million first, then insurance covers the rest according to the benefit limit. This figure is only an assumed example.
Common misunderstanding
Some people think a deductible is the same as a premium. The correction: a premium is the cost of buying insurance, while a deductible is the portion of medical costs still borne by the customer.