Health Insurance vs Life Insurance, What’s the Difference?

Health Insurance vs Life Insurance. Insurance has many types, including health insurance and life insurance. However, not a few people think that both are the same type of insurance. In fact, life insurance and health insurance have differences from various sides.


  • Health insurance covers costs related to health problems (illness or accident). Health insurance will make it easier for someone to pay for hospital fees, medicines, doctors, to surgery.
  • Whole life insurance will provide protection when a person dies, namely in the form of a sum insured for his heirs. The sum insured becomes a kind of substitute for the living of people who are dead.
  • Another condition that allows the life insurance coverage money to be disbursed is when a person is no longer able to work due to a permanent disability or critical illness (an illness that takes a long time to recover).

There is also a type of life insurance that provides complete benefits in the form of additional health insurance and other benefits.

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Health Insurance
Health insurance is divided into several types, among others, based on the fund manager and the type of reimbursement. There is also a partial cash withdrawal facility.

Fund managers

There is health insurance from the government that is managed by the Health Social Security Administration (BPJS). This insurance is mandatory for all Indonesian people. Certain groups are free from the burden of paying premiums, but some must continue to pay premiums according to the provisions. Furthermore, there is health insurance from the private sector, which is insurance offered by various insurance companies.

How to replace

In terms of how to replace it, there are terms of cashless and reimbursement. For the cashless method, it is enough to show your insurance membership card to the hospital, the insurance company will immediately bear the costs. Meanwhile, through reimbursement, customers must first pay for medical expenses with personal funds. After that, the customer can make a claim and will get a replacement from the insurance company.

Life insurance

The following types of life insurance:
• Term life insurance, which protects for a certain period of time. The premium is fixed and cheap.
• Endowment life insurance which has two benefits, namely term life insurance and savings.
• Unit-linked life insurance, an insurance product as well as an investment. The benefits of this type of insurance are like most other life insurance, plus the benefits of investment products.


Health Insurance

Astra Life-AVA Sehat Proteksiku
Asuransi AVA Sehat Proteksiku from Astra Life will cover the costs for hospitalization to surgery. Hospitalization benefits are worth up to IDR 2 million per day, while began benefits are worth up to IDR 10 million per surgery. Customers can also double cover, namely claiming together with other insurance. The premium is affordable, starting from IDR 185,000 per year.

Life insurance

Prudential-PRUlink assurance account
This insurance is a type of unit-linked life insurance, which combines insurance and investment products. The benefit if registered with this insurance is that you will get compensation for death or total and permanent disability. Also, you can choose the type of investment according to your risk profile. There is also a partial cash withdrawal facility. And, there are additional insurance products such as hospitalization and accidents. That way, you will feel the benefits of life insurance, health insurance, and investment in one product.