What is Cumulative Bonus in Health Insurance?

Health insurance has become a quintessential need in today’s era. So, what is health insurance ? A health insurance plan is a renewable contract with which, an individual can protect their loved ones from a medical crisis. Cumulative Bonus (CB) is offered to the policyholders to ensure that they receive some more added benefits for not filing a claim. Before customers buy health insurance, it is essential to know everything about the cumulative bonus in health insurance. Therefore, go through the following guide to understand the concept & how does it work in helping you receive benefits in the long run: What is Cumulative Bonus? A Cumulative Bonus is a feature provided by every insurance company on availing a health insurance policy. It is a rewarding benefit offered to those policyholders who don’t file a claim for their health insurance policy. While certain insurers add the benefit to the sum assured amount, the rest of them offer rebates when a customer renews health insurance. Although the type of cumulative bonus may differ, the granted benefits on every claim-free year remain the same. The Cumulative Bonus is generally provided to a buyer only under specific situations. Given below are the conditions under which an insurer allows every policyholder to avail CB Benefits.

1. There is a significant rise in the sum assured amount that directly corresponds to the percentage of Cumulative Bonus you have accumulated over the years. The increase in the sum assured value is directly proportional to the total number of claim-free years.
2. The bonus is generally accumulated up to a maximum period of 10 years.
3. The CB is mentioned in the policy document. Hence, the policyholder must read the policy document, and its terms and conditions carefully.
4. It is applicable to the sum assured for a valid policy. Therefore, a policyholder must ensure timely insurance renewal before the expiry period or they will lose all CB benefits accrued during their policy tenure.
5. The CB on the sum assured varies from 10% to 100%.
6. If the claims overlap with two health insurance policies, then an individual can obtain the benefits of sum assured. However, the Cumulative Bonus is not zeroed down.
7. The bonus can either be withdrawn as a whole or after the deduction in the premium.

To sum up, knowledge regarding the Cumulative Bonus can be quite helpful to save on your premiums in the future and as an incentive in not filing for a claim if not required. Hence, utilizing the benefits of your health plan during online policy renewal is essential. Bajaj Allianz General Insurance provides every policyholder with a hassle-free insurance purchase experience. Buy a health plan and secure yourself today!