Why No-Claim Bonuses Matter in Health Insurance
A No-Claim Bonus (NCB) is a reward offered by health insurers to policyholders who do not make any claims during a policy year. In Singapore, this typically comes in the form of a premium discount rather than an increased sum insured. The idea is to encourage individuals to maintain good health and avoid unnecessary claims.
Learn more: Health Insurance In Singapore >>
How No-Claim Bonuses Work in Singapore
Unlike some international health insurance plans that increase the sum insured, Singapore insurers offer discounts on premiums for claim-free years. Here are some examples:
- Singlife Shield: Provides a 15% discount on premiums if no claims (or claims below S$1,000) are made within the assessment period.
- Prudential’s PruShield: Uses a claims-based pricing model, meaning policyholders pay lower premiums if they do not make claims..
Benefits of No-Claim Bonuses
No-Claim Bonuses provide several benefits to policyholders:
- Lower Premiums – If you stay healthy and avoid claims, you enjoy significant savings on your health insurance costs.
- Encourages Healthy Living – Policyholders are more motivated to take preventive healthcare measures to keep their insurance costs lower.
- Long-Term Cost Savings – Over the years, these discounts can accumulate, making health insurance more affordable.
Is a No-Claim Bonus Worth It?
For those who rarely make claims, an NCB can lead to substantial cost savings over time. However, if you frequently require medical treatments, you may not benefit as much since the savings only apply to claim-free years.
Considerations and Potential Risks
While No-Claim Bonuses offer financial benefits, there are some considerations and potential risks policyholders should be aware of:
Loss of Bonus After a Claim: In most cases, making even a single claim can reset the accumulated discount, meaning policyholders lose their NCB benefits. This can be a drawback for those who need to make occasional claims for medical treatments.
Not Available on All Policies: Some insurers may not offer No-Claim Discounts on certain types of health insurance plans, such as Integrated Shield Plans (IPs). Always check the policy terms before purchasing.
Encouraging Delayed Treatment: Some individuals might avoid seeking necessary medical attention just to maintain their NCB benefits. Delaying medical care can lead to more severe health issues in the long run.
Find a Trusted Financial Consultant For Your Health Insurance Needs
No-Claim Bonuses are an important part of health insurance, rewarding policyholders for staying healthy and avoiding unnecessary claims. However, it’s important to weigh the benefits against the risks and not skip necessary medical care just to keep the bonus.
Contact us today to speak with a trusted financial advisor who can help you make the most of your health insurance benefits.
Related Articles On Health365
Protect against cancer, cardiovascular disease, and other chronic diseases with regular health screening. Compare and shop for health screenings from Singapore and regional healthcare providers at a single convenient platform - shop.health365.sg
This article is informative only and is not intended to be a substitute for professional medical advice, diagnosis, or treatment, and should never be relied upon for specific medical advice.