- How low can your insurance cost go?
No Claim No Pay
Let us begin by looking at how a typical coverage at Bandboo will cost you. The cost can be broken down into three components:
Monthly account top-up
Out of these three components, the pledge1 and account top-up2 are fully refundable.
To join a community, you have to make a one-time pledge as a show of your commitment towards helping the members. Although we believe most of our members will stay committed to the cause of the community, this pledge serves to strengthen it. Members receive the full pledge back at the end of their membership term. However, if a member lapses in payment, the pledged sum will be placed into the payout pool for the month after the grace period is over. The purpose of this is to protect the interest of members who continue to make their payments in a timely manner.
After making the pledge, you will be eligible to join the community. A monthly membership fee has to be paid to keep your membership active so that you can continue to enjoy the relevant coverage. A large part of this membership fee goes towards maintaining our platform. Bandboo runs a proprietary blockchain technology to uphold the integrity of all transactions at the highest level. However, the maintenance of blockchain platforms with its constant mining is also well-known to incur substantial costs.
Of course, among the other operating costs a part of it also goes towards hiring passionate and talented individuals so that we can respond to your needs promptly. As a financial technology company, Bandboo automates processes as much as we can. This keeps our team lean and the corresponding expenses low. Our cost savings are then passed on to you so that your membership fee is as low as it can get.
Monthly account top-up
Since you are taking up an insurance coverage here, there will be a need to pay premiums. At Bandboo, we term them contributions. The key difference between the two is what happens when payouts are lower than expected. Premiums are prepaid and, if not used as payouts, are pocketed by insurance companies as profits. On the other hand, contributions are paid on-demand; you only have to pay a contribution when there is a payout.
To ensure that payouts can be made in a timely manner to help members in the community who are in need, a monthly top-up into your Bandboo account is required. Contributions are then paid from your account when there are payouts. At the end of each membership term, any amount remaining in your account is fully and unconditionally refunded back to you. This is in line with Bandboo’s mission of enabling insurance coverage for everyone at the lowest possible cost.
So how low can the cost of my insurance coverage go?z
In the most optimistic scenario whereby there are no claims, all you have paid by the end of your membership term is the membership fee. For the Unemployment Assurance Community we are launching, the monthly membership fee is $9.99 for an annually renewable term. That means you would only need to pay $119.88 that year to protect yourself against the risk of retrenchment. Of course, this is the ideal case and we should be expecting some claims during the year. The overall amount is likely to be at least a little higher.
Early bird promotion
Currently, we are having our early bird promotion. The first 1000 memberships will enjoy the first month of membership for free. What’s more, with every friend you refer into the community through your referral code, both you and your friend will receive a month of free membership. If you refer ten friends, you get your entire year’s membership waived.
1 Fully and unconditionally refund at the end of your membership term
2 Fully and unconditionally refund of any amount not used for payouts