Introduction
As health insurance has become essential financial tool for safeguarding yourself and your family members against unexpected medical expenses. But what happens when you don’t use your insurance benefits for a whole year? Do you lose that value? Fortunately, no. Thanks to a feature called the cumulative bonus Health Insurance coverage plays vital role in securing health wellness of a policyholder; whoever with increasing medical inflations cumulative bonus enhances coverage in health insurance. Cumulative bonus is benefits were your sum insured is increased without increase in premium.
In this article we shall understand benefits of cumulative bonus in health insurance. Whether you are a policyholder or planning to buy a health policy, understanding this benefit can help you maximize your insurance cover and long-term value.
What is cumulative bonus?
Cumulative bonus is given to a policyholder for every claim free year in his health insurance policy without increase in premium. The bonus is generally given in fixed percentage from 10%, 20% or 50% of sum insured subject to maximum 100% or 50% sum insured. The bonus percentage may vary from insurer to insurer.
Let’s understand with example, Health Insurance coverage of Rs. 10 Lakhs with 10% CB for claim free year. Next health renewal coverage will be Rs. 10 lakhs plus Rs. 1 lakh CB; total coverage will be Rs.11 lakhs. Hence every claim free cumulative bonus shall increase by 10% subject to 100% or 50% of sum insured subject to terms of health insurance policy. Cumulative bonus is reward benefits for claim free year in health insurance.
Benefits of Cumulative Bonus
- Increase in coverage with fixed percentage subject to maximum 100% sum insured
- CB increase coverage without increase in premium.
- CB helps to mitigate rise in medical inflation.
- Encourage policyholder to take care of his health every year and prevent illness.
- CB on sum insured may varies from 10%, 20%, 50% or 100%
- Prevent unnecessary small claims in policy as sum insured raised very year without increase in premium
How does cumulative bonus works in health claim?
A policyholder will lose cumulative bonus once there is a claim in health insurance. The coverage will be restored to base sum insured in next renewal. Let understand with examples Mr. Rahul has Rs.5 lakh sum insured with 10% CB for every claim free year. He renews his health policy judiciously and get CB every claim free year. By 5th year his CB has been Rs. 2.50 lakhs with base sum insured of Rs 5 lakhs. In 6th year Mr. Rahul had put a health claim of Rs. 1.50 lakhs which was settled by insurance company. In 7th year Mr. Rahul coverage will be restored to base sum insured Rs. 5 lakhs.
Some health plan have bonus protector rider that keeps your cumulative bonus intact even if there is a claim in the health policy.
How to Maximize Your Cumulative Bonus
Here are some tips to make the most of this benefit:
- Avoid Small Claims: It is better to avoid minor expenses and use out-of-pocket funds or other wellness benefits.
- Buy Bonus Protection: Consider add-ons that protect your bonus in case of claims.
- Stay Healthy: Regular health check-ups, a good diet, and exercise go a long way in reducing medical issues.
- Renew On Time: Always renew your policy before the due date to preserve your bonus.
- Choose Plans with High Bonus Percentage: Some policies offer up to 50% bonus per year—compare before buying.
FAQs on Cumulative Bonus in Health Insurance
Q1. Will I lose my cumulative bonus if I make a claim?
Yes, in most cases. However, some policies offer bonus retention riders that protect your bonus even after a claim.
Q2. Can cumulative bonuses exceed the base sum insured?
Yes, but usually up to a capped limit, such as 100% of the base sum insured.
Q3. Does cumulative bonus increase the premium?
No. The bonus increases your coverage, not your premium—unless you’re buying an add-on for protection.
Q4. Is cumulative bonus offered on all health insurance plans?
Not all. It’s usually found in individual and family floater plans but not in group insurance schemes.
Conclusion
The cumulative bonus in health insurance is one of those underrated yet extremely beneficial features. It encourages a healthy lifestyle, rewards you for not making claims, and gives you more financial protection year after year—at no extra cost. When comparing health plans, make sure you don’t overlook this benefit.
By choosing the right policy and being mindful of how and when to claim, you can significantly increase your health coverage and save money in the long run. Stay healthy, stay covered, and let your insurance policy grow with you.
