Understanding Cumulative Bonus in Health Insurance Policies

Understanding Cumulative Bonus in Health Insurance

“A ‘no claim bonus‘ or ‘cumulative bonus’ is a benefit provided by insurance providers to policyholders who do not file any claims throughout the policy year. This reward is extended in the next coverage year without increasing the premium.

In other words, this benefit is carried over to the next year in the form of an increase in the limit of coverage (basic Sum insured + cumulative bonus) without any additional cost to the policyholder. It is a reward for not utilizing the insurance coverage provided.”

However, it’s important to note that not all health insurance plans offer cumulative bonuses and those that may have different terms and conditions, such as the rate of bonus increase or the length of time required to remain claim-free before the bonus kicks in.

It’s also important to read the fine print of your policy and understand the terms and conditions so you can take full advantage of the cumulative bonus.

In conclusion, the cumulative bonus is a fantastic feature provided by health insurance a company that rewards policyholders for staying claim-free and can increase the value of their coverage over time. It is essential to check if your plan has this feature and understand its terms and conditions.

To learn more details about health insurance policies and to buy policies at an affordable premium with good discounts, visit the official website of Star Health Insurance.