Does a No-Claim Bonus Apply to Life Insurance?
Plain-English definition: A claim-free reward used in some health, motor and general insurance markets. It is not a standard feature of U.S. individual life insurance.
A death claim does not begin another life-policy renewal cycle
No-claim bonus is not a standard U.S. individual life insurance feature. A life insurance death claim ends coverage on that insured rather than starting a new claim-free cycle.
A claim-free reward used outside standard US individual life
A no-claim bonus rewards claim-free periods in certain health, motor and general insurance products. It may appear as a discount, increased benefit or other renewal feature, depending on the market and contract.
How a health-plan bonus may grow or disappear
A feature common in another insurance market
A health plan outside the United States might increase a benefit limit after a claim-free year. Filing a covered claim can reduce that accumulated feature under the policy's rules.
Identify the insurance line before comparing rewards
- Confirm whether the feature applies to this insurance line
- Read how a claim changes the reward
- Compare the underlying coverage before valuing the bonus
Compare claim and premium terminology correctly
Use how life insurance claims work to see how this definition affects a real policy decision.
Terms to read alongside no-claim bonus
Sources for understanding no-claim bonus
This page explains general insurance usage. State law, the issued contract and the insurer's current records control a specific policy. Use the sources below to verify general terminology, then check the exact policy language.