The Significance of Cumulative Bonus in Health Insurance

If you think that being healthy and not getting hospitalized is a waste of your premium money, then Cumulative Bonus is all you need to change your mind.

FP Studio April 01, 2020 20:06:11 IST
The Significance of Cumulative Bonus in Health Insurance

The sudden spread of the COVID-19 pandemic across the world has come as a shock for the healthcare system globally. In today’s uncertain times, if there’s one thing everyone can agree on, it is the fact that quality healthcare is a must-have for everyone. One way to get quality healthcare is by having an adequate health insurance for each and every member of your household. Imagine the chaos you can find yourself in if you’re detected with a significant health condition and you have to fork out lakhs of rupees to heal yourself.


It’s not just the elderly or the middle-aged who need health insurance. With today’s hectic urban lifestyle coupled with pollution all around, it’s a matter of when, not if, health insurance can come to your rescue.

Having has many benefits. Not only does it provide coverage for most known diseases, but it can also provide best-in-class medical facilities as insurance companies have a tie-up with hospital chains for cashless treatment. Apart from this, one can also save income tax if they have a valid health cover.

Many people argue that if you are healthy or do not make a claim, then you are only losing out on your premiums being paid for the health insurance. While health insurance polcies come with several benefits, today we will focus on a benefit that makes can help you get rid of the prevalent reservation regarding health insurance mentioned above.

Let us take a look.


Now that you’ve understood the importance of health insurance, it is important to pick a plan that looks after your benefits all the way. Hence, we recommend health insurance plans that offer Cumulative Bonus. Leading and large insurance companies such as Bajaj Allianz offer the scheme to ensure that their products stand out from the rest.

Cumulative Bonus is a sort of reward you get as a policyholder for staying fit and not filing a claim. At the end of your first year, the insurance company will increase your coverage amount by a certain percentage between 5% – 10% depending on a host of factors.

For example, at the end of your family health Insurance policy, if you do not make a claim and your policy comes up for renewal, you can get your sum insured increased by up to 50%. It gets better. You won’t lose your Cumulative Bonus even if you’re switching your insurance provider in your renewal year.

Cumulative Bonus keeps increasing with each consecutive year that goes claim-free. For example, on a sum assured of INR 5 lakh, you might get a Cumulative Bonus of 10% taking your sum assured to INR 5.50 lakh. This will increase to INR 6 lakh if you do not file a claim for the second year and get 10% Cumulative Bonus as well.

Some insurance companies might decrease the premium amount to be paid in the second year. For example, if you paid INR 50000 as premium towards your health policy, you would pay about INR 5000 less in the second year, depending on your insurance provider.

This is completely different from what you would have had in mind. If you think that being healthy and not getting hospitalized is a waste of your premium money, then Cumulative Bonus is all you need to change your mind. After all, fitness is a fickle thing and can change from one year to the next. Cumulative Bonus also ensures that there is a continuity in your health insurance without losing out on any of its benefits that might occur if the policy lapses.


Since you’re familiar with Cumulative Bonus now, here’s our suggestion from the plethora of options available to you. We can wholeheartedly recommend Bajaj Allianz’s Health Insurance plans that make accumulating Cumulative Bonus a child’s play, especially with its much-needed M-Care Health Insurance policy.

Choose Bajaj Allianz’s M-Care Health Insurance policy for self and family that provides financial immunity against vector-borne diseases caused by mosquitoes and other dangerous small insects. You receive health insurance coverage for Dengue, Malaria, Zika virus, Chikungunya, Japanese encephalitis, Filariasis and Kala azar with Sum Insured options ranging from INR 10,000 to INR 75,000. The policy has a lifetime renewal option and a free look period of 15 days.

Not only do Bajaj Allianz’s plans provide for Cumulative Bonus, they also have many other attractive options being one of the leaders in the space.

Don’t wait until it’s too late. Get a Cumulative Bonus-inclusive health policy from Bajaj Allianz Health Insurance today.

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