basic benefits
Also called: basic benefit
The main protection automatically included in a policy before any additions.
What it means
Basic benefits are the core coverage promised by an insurance policy and automatically apply once the policy is active. The contents differ by insurance type: in health insurance they usually include hospitalization and surgery, while in life insurance they take the form of a death benefit. Basic benefits set the minimum premium cost before additional benefits are chosen. In Indonesia, the list of basic benefits must be clearly written in the policy summary.
Why it matters for families
Families often compare premiums without checking the contents of basic benefits. As a result, a cheap policy may not cover hospitalization even though that is the main need. Understand the basic benefits first, then assess whether paid additional benefits are needed. Misunderstanding here can cause large claims to be rejected because the event is not included in the basic benefits.
Example
For example, a family health policy sets basic hospitalization benefits with a certain room class and an annual cost limit. Surgery due to dengue fever is included in the basic benefits, while dental care is not. If the family only looks at the premium figure, they may think all hospital costs are covered.
Common misunderstanding
Many people assume all medical treatment is automatically covered because they have paid premiums. The correction is that only events listed as basic or additional benefits are covered.