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Health insurance policies are not issued for less than one-year

period.

Usually life insurance premium can be paid in monthly,

quarterly or six-monthly installments but health insurance

premium has to be paid for one year – at the very least. Some

insurers have now started offering EMI based premium but like

several other benefits, even these come with the tag of

‘conditions apply’.

General terms related to Health Insurance:

 Sum Insured

The Sum Insured offered may be on an individual basis or on

floater basis for the family as a whole.

 Cumulative Bonus (CB)

Health Insurance policies may offer Cumulative Bonus wherein

for every claim free year; the Sum Insured is increased by a

certain percentage at the time of renewal - subject to a

maximum percentage (generally 50% of base sum assured).

Example in a health insurance policy of 3, 00,000.00 INR (4500

USD) the maximum bonus one may accumulate will be half; i.e.

1, 50,000.00 INR (2200 USD). Should a claim being lodged, CB

will be reduced by 10% at the next renewal.

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