Advantages and Importance of Having Health Insurance

Advantages and Importance of Having Health Insurance

Having Health Insurance: The function of health insurance is as a financial solution if customers experience health risks. It should be understood that the function of health insurance is very important, given the higher hospital costs from year to year. The following are the advantages that can be obtained when having health insurance:

1. Minimizing Financial Risk

With health insurance protection, customers do not need to panic if they have to be treated at the best hospital, because it will be covered by insurance. In addition, with health insurance you can also secure your savings or financial flow so that it always goes according to plan even if you have to be hospitalized.

2. Simple Administrative Process

Private health insurance offers an easy administrative process, where customers just need to show their insurance participant card and identification card to get cashless services directly at the hospital. So, there is no need to ask for a referral letter from health facility 1 first.

3. Overseas Outreach Hospital

Currently there are many health insurance options that offer health services to overseas coverage.

Why Is It Important To Have Health Insurance?

Having health insurance is one way of anticipating your financial risk of health risks, such as serious illnesses and those that require substantial treatment costs. Just imagine, every year the cost of hospitalization in the hospital continues to rise significantly, even more than 10 percent. With health insurance, you can get inpatient room facilities according to the policy you have and also cover for room costs per day. So there is no need to panic if you experience health risks and must be hospitalized.

What is Health Insurance Policy

Tips for Choosing the Best and Cheapest Health Insurance

Choosing the best health insurance in 2022 is not easy. With hundreds of choices of policies and brands, prospective customers are required to be more careful in choosing cheap health insurance that really suits their needs with the best premiums.

So that you don’t make the wrong choice, you should first compare the desired policy with other best health insurance.

Also know some things that need to be considered before buying the following health insurance:

1. Cashless Claim Method

With a cashless claim system , customers can come to the hospital with only a health insurance participant card. This means that customers do not need to spend money in advance to get medical treatment.

2. Bearing Outpatient Fees

The cost of pre- and post-hospitalization care is not cheap. For that, when choosing a health insurance review, consider the policy that covers the outpatient costs.

3. Premium Return Benefits

The next tip for choosing health insurance is to choose one that offers premium return benefits or a no claim bonus. That is, the premium that has been paid will be returned a certain percentage (depending on the policy) if there is no claim until the insurance period ends. Usually, the company will return 20 to 100 percent of the total premium that has been paid.

4. Coordination of Benefit (CoB) Benefits

With the Coordination of Benefit (CoB) benefit, if BPJS insurance does not cover all treatment costs, then you can apply for the deficiency to private insurance.

5. Bearing Pre-Existing Condition

Pre-existing condition is a condition where the prospective customer already suffers from certain diseases when registering for insurance. Most products exclude this in their claims, but some do not exclude it with or without conditions.

6. Limit / Ceiling According to Premium

In choosing health insurance, also consider the limit or ceiling. The ceiling offered by health insurance at first glance seems large. For example, the sum insured (UP) of Rp. 20 million seems a lot at this time. However, in the coming years with an increase in medical costs of 7-15 percent, the coverage value will decrease.

If possible, you should choose one that covers medical costs according to the hospital bill (as charged).

7. Premium Contribution According to Income

Although health protection is very important, prospective customers still have to ensure that their finances are maintained. Therefore, make sure the premium is not too expensive let alone exceed the ability. By default, the minimum insurance allocation is around 3-5 percent of income.

8. Buy Through an Insurance Broker

Brokers that have been officially registered can help customers choose the best online health insurance according to their budget and needs, as well as make practical claims. Insurance brokers like Lifepal can be very helpful in selecting the best health insurance recommendations and assisting with your claim process.


  1. I like that you pointed out how customers do not need to panic if they have to be treated at the best hospital with a health insurance protection. I noticed that people tend to get sick easier these days so I am thinking of getting a health insurance. There are quite a number of options that we could choose from, so we should pick carefully.

  2. It’s good to know that getting health insurance provides one with an easy administrative process to get cashless services in a hospital. My friend recently got diagnosed with a chronic illness, and she wants to ensure that her finances will be covered. I should look for health insurance solutions in our area and recommend what I find to her.


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