Having a health insurance policy is crucial in these times of growing costs. A health insurance plan gives you the peace of mind that, in the event of a medical emergency, you won’t have to cover the substantial costs out of pocket. Simply file a claim, and the insurer will cover the cost of your medical care. However, a lot of people frequently consider health insurance to be a cost. They believe they might lose money if they don’t make any claims, which is a mistake. This is prevented by a feature known as the cumulative bonus. Watch to see how.
A CUMULATIVE BONUS IS WHAT? The insurer gives you the cumulative bonus if you do not make any claims over the term of the insurance. With this feature, you get a lower premium or a higher sum assured for a claim-free period of the policy. This trait is cumulative in nature, as its name suggests. As a result, the bonus amount rises with each year without a claim.
The cumulative bonus feature can typically be prolonged for a specific number of years. That is, only those consecutive years without a claim are taken into account for the maximum deduction.
SPECIFICATIONS OF THE HEALTH INSURANCE CUMULATIVE BONUS performs one of the two actions You could gain from the cumulative bonus, which is also known as a no claim bonus.
You can, first of all, enhance your sum assured. In the event that a claim is raised in the future, the maximum amount you are eligible for rises. This enables you to receive top-notch care without taking your budget into account.
As an alternative, the insurer will give you this incentive when you renew your health insurance in the near future by lowering the cost of your coverage. The total scope of your policy’s coverage is unaffected by this reduction. You still get the coverage you want, but at a lower cost.
You should be aware that you won’t get both benefits at once. You can get in touch with your insurer and inquire about the specific benefits for which you are qualified.
applies to family plans as well. Not just for individual plans but also for family health insurance policies, the cumulative bonus feature is applicable. However, as may be clear to some, the likelihood of obtaining this bonus under a family plan is lower because there are more people who are protected. A claim being filed is more likely to occur if more people are covered. Nevertheless, the cumulative bonus feature will start working in your favor if you have had a claim-free year under your family plan.
Bonus capped at a specific amount The bonus that you can earn with this feature has a cap, as was previously explained. It could be displayed as the maximum number of years that you can go without filing a claim. Or it could be restricted to a specific portion of the money insured. For instance, the majority of plans cap the bonus at a maximum of 50% of the value of the total covered. As a result, after the bonus value reaches Rs 2.5 lakhs and your sum insured is Rs 5 lakhs, it will cease increasing.
Bonus could be forfeited if there is a claim. You forfeit the benefits you have already accrued if you receive one or more incentives after one or more claim-free years and subsequently file a claim, whether through your