As healthcare costs continue to rise, maintaining adequate insurance coverage without a significant increase in premiums becomes crucial, especially for those in their golden years.
The no claims bonus is a unique feature that significantly benefits Elderly people improving your health insurance coverage.
Amit Bhandari, Technical Director, Magma HDI General Insurance, explains the importance of NCB in senior health insurance:
“No Claim Bonus (NCB) is a benefit where the policyholder’s sum insured is increased without changing the base premium for that age. It is offered to policyholders who have not made any claims during the last policy period. If you make a claim, it is reduced by the same percentage by which it was increased. However, some insurers now offer products where the NCB is not reduced even if you make a claim. This is especially beneficial for senior citizens as it rewards them for maintaining good health by increasing their cover amount without increasing the premium when renewing the policy within the same age group.”
This feature is especially advantageous for seniors, who often have a fixed income and cannot afford sudden increases in insurance premiums.
The NCB acts as a buffer against inflation in medical costs, allowing seniors to keep their out-of-pocket expenses stable.
Bhandari further emphasises, “One of the key advantages of NCB is its cumulative nature – it can be built up over successive years and is applicable to family floater policies as well. Often referred to as an inflation shield, NCB helps counter the rising cost of medical treatments. Instead of paying higher premiums to keep up with inflation, seniors can upgrade their cover at the same premium rate by continuing to take care of their health. This means that even when healthcare costs rise, their out-of-pocket expenses remain stable, thanks to the additional cover provided by NCB.”
The cumulative nature of NCB, which can build up over a number of years, offers a significant advantage, especially when applied to family floater policies.
As seniors continue to prioritize their health, NCB provides them with a reliable safety net that allows them to meet medical challenges without worrying about rising costs.
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