A cumulative bonus is a straightforward way for insurance companies to thank a policyholder for a year without filing a claim by offering them additional health insurance benefits. A cumulative bonus is frequently listed as one of the most important factors to consider when purchasing a health plan. You should be aware of four things about cumulative bonuses for health insurance before you buy health insurance online. *

Number 1: In Health Insurance, There Are Two Types Of Cumulative Bonuses.

Cumulative bonuses for health insurance operate in two ways:

(a) Cumulative bonuses and (b) Premium concessions. Let’s use examples to clarify each of them below:

(A) Cumulative Bonus:

You get a cumulative bonus for having a claim-free year when your coverage amount increases, but your premium amount stays the same. *

For instance, if you have a Rs. 5 lakh health insurance policy, your insurer may give you a 5% cumulative bonus each year without a claim. As a result, for the same premium, your coverage amount would increase to Rs. 5.25 lakh in the first year if you hadn’t filed any claims under your health insurance. The coverage amount would rise to Rs 5.5 lakh for two years without a claim, and so on.

Note:The above example takes into consideration approximate numbers. Actualy bonus percentage values may differ.

Claims are subject to terms and conditions set forth under health insurance policy.  *

(B) Premium Concession:

In the case of a premium concession for a cumulative bonus, the coverage amount is the same, but the premium amount is reduced by a certain percentage for each year without a claim. Claims are subject to terms and conditions set forth under health insurance policy.  *

Assume you pay a premium of Rs 10,000 annually for a health insurance policy worth Rs 5 lakh. Your insurer now provides a 5% premium concession as a cumulative bonus for each year without a claim. Therefore, if you do not file a claim for health insurance in the first year, you must pay Rs 9,500 when your policy is renewed. However, the coverage amount would not change. *

Note: The above example takes into consideration approximate numbers. Actually bonus percentage values may differ.

Number 2: The Amount Of Coverage You Can Raise Through Cumulative Bonus Has A Cap.

There is a cap on the cumulative bonus in health insurance, even though it increases the coverage amount. Furthermore, the terms and conditions may vary between insurance companies. You can manage all aspects of your health insurance using a health insurance app. *

Number 3: Individual And Floater Health Policies Are Both Eligible For The Cumulative Bonus.

While floater policies offer health insurance to the entire family, individual health plans only cover the policyholder. Therefore, if you have a separate policy and don’t file any claims for health insurance for the entire year, you won’t get a bonus. Be at the top of managing your health insurance on the go by using an app for health insurance. *

Number 4: Not All Health Insurance Plans Provide Cumulative Bonuses.

A cumulative bonus is not available in all health insurance contracts. Each health insurance plan with a cumulative bonus has its terms and conditions. Read the fine print to determine whether a health insurance policy has a cumulative bonus before you buy health insurance online. *

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*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.