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Cumulative Bonus In Health Insurance: Explained

Cumulative bonuses in health insurance can be a valuable asset for policyholders. In this article, we'll explore the concept of cumulative bonuses and how they work, providing insights into how they benefit individuals with health insurance.

  • 03 Nov 2023
  • 3 min read

In health insurance, cumulative bonus stands out for its key advantage: boosting your coverage at no added cost. This bonus not only extends coverage during medical emergencies but also functions as a money-saving tool. Let’s look into the meaning of cumulative bonus in health insurance to understand this feature better.


What is cumulative bonus in health insurance?

Simply put, cumulative bonus in health insurance is like a special gift you receive from your insurer. It's their way of saying "great job" for staying healthy and not needing to make a claim.

  • If you go without making claims for a whole year, your premium might even get cheaper. This is offered by a few insurance providers and it is called a "premium discount." So, the longer you go without needing to use your insurance, the more you benefit.
  • However, the more common type of bonus is the increase in sum insured if no claims are made during the year. This is termed as “no-claim bonus” and it is a fixed percentage of your sum insured – usually 5% or 10%. So if the first year your sum insured was 5 lakh and you made no claim, the next year your sum insured will automatically increase to 5.5 lakh.
  • The Cumulative Bonus isn't restricted to individuals; it works for family floater health insurance plans too. But not all insurance companies may offer this bonus. And even if they do, there are some rules you need to follow to be eligible. So, if you're thinking about choosing a policy with the Cumulative Bonus, it's a good idea to carefully read and understand the policy documents.

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To sum it up, the Cumulative Bonus is really a beneficial feature of health insurance. Even though different insurance companies might have different rules, the Cumulative Bonus is a great way to make health insurance even better. It encourages you to stay healthy and gives you more robust security when it comes to taking care of your medical expenses.

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