3 Types of Insurance Important for Women


As a woman, there are certain types of insurance that you should have to maintain your welfare. Unfortunately, many people in Indonesia still see no point of having insurance for themselves.

According to data from the Life Insurance Association of Indonesia (AAJI), the total number of insured people in Indonesia —under individual and group plans— reached around 87 million people within the first half of this year. Although this number was an increase, only about 5.3% of Indonesia’s total population is insured individually.  

Apparently, having insurance is not considered as important as having savings and time deposits. More often than not, employees rely on health insurance provided by their respective workplaces, although it may not offer complete protection if they get sick or have an accident.

There are at least 3 types of insurance that you should have right now.

Pure Health Insurance

If you are a "beginner" and just want to have insurance to cover the cost of hospitalization, choose health insurance. This type of insurance will cover your medical expenses if you get sick or get into an accident and require hospitalization.

“Currently, many insurance companies are selling this type of insurance with low premiums, starting below Rp 100,000,” says Erik, a marketing executive in a prominent insurance company in Jakarta.

In addition to health insurance, another type that is commonly offered is unit-linked insurance. Several agencies state that if you purchase this insurance, you will receive two types of benefits, because unit-linked insurance is a package of insurance and investment combined. However, according to Eric, the amount allocated to cover your medical expense is usually smaller than what you will actually need. In other words, it would probably be insufficient to cover your medical expense and you will be underinsured.

“People are now actively pursuing pure health insurance because there have been many cases in which people holding unit-linked insurances are in fact, under-insured,” he said.

Erik further explains that insurance agents are keen to offer unit-linked insurance because the commission is usually bigger for agents. As a consumer, you should be more careful because there are usually many hidden costs in this type of insurance.

Accident and Permanent Disability Insurance

You never know when an accident will happen to you. To be prepared for this, there is an option for additional insurance coverage for accidents. In some insurance companies, the coverage is 100% should you have permanent disability due to an accident and doubled if the insured's death as a result. This type of insurance will even bear the loss of income if the insured person cannot continue on working because of permanent disability. 

This type of insurance is not only good for women who freelance or have their own business, but also for those with regular jobs because it guarantees the cost of living should they not be able to work anymore. Stasia, an insurance agent from Prudential, recommends clients to read the insurance policy thoroughly to know the kinds of disability conditions that are covered by insurance companies.

 “It surely (covers) permanent disabilities that result in you unable to work, such as hands and feet amputation. To be clear, talk to each respective insurance agency because each company has different policies,” she says.

Be Careful When Choosing Insurance for Critical Illness

While you are young and healthy, you should have critical illness insurance. This type of insurance would protect when you are diagnosed with critical illnesses such as cancer, heart attacks, stroke and even lupus. However, you need to be smart in choosing because not all companies cover the same kinds of critical illnesses. On average, insurance companies provide coverage for around 30-45 types of critical illnesses at varying premiums depending on your age.

“Get it while you’re young, ideally before 40 years of age, because insurance companies consider that people have a higher risk of getting sick as they get older," Stasia explains.

Insurance is vital for health protection but you should always read the policies thoroughly before deciding to purchase any. You surely do not want to end up with the wrong insurance —one that is not suitable to your needs.

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