Definition

An option that stops premium payments if you become seriously ill or disabled. It ensures your coverage continues without extra financial strain.

What to consider

  • Understand the criteria for earning a bonus.
  • Keep a record of claim-free periods.
  • Review how the bonus affects your renewal premium.

Real world scenarios

  • After a year without filing any claims, Sarah received a no-claim bonus that reduced her premium for the next year.
  • A driver earned a bonus discount on his auto insurance for maintaining a clean record.
  • An insurer credited a no-claim bonus to Mark’s policy, lowering his renewal cost.

Related terms

Insurance & Financial Protection