Home / Money / Personal Finance /  Should newlyweds opt for a family floater plan?

When it comes to health insurance, newlyweds often worry about combining their separate policies into a single family floater plan. After all, who wants to lose precious benefits like pre-existing disease coverage? And even if there is no such loss, is this as simple as merely merging a couple of policies?

Yes, says Priya Deshmukh Gilbile, COO of ManipalCigna Health Insurance. Individuals can port their health policies with a family floater plan after marriage and get all benefits, but with some riders. For example, if the policy holding period differs for each individual, the insurer will merge the policies with the risk start date of the later policy, provided the gap in policy periods is not large and the insured have given their consent.

But what about waiting periods? Parthanil Ghosh, president of retail business at HDFC ERGO General Insurance, says the insurer will, while switching policies with a family floater plan, evaluate the policy waiting periods for each individual separately, ensuring seamless transition.

But before taking the plunge, it’s important to note that as of 1 January, the Insurance Regulatory and Development Authority of India (Irdai) has made Know Your Customer (KYC) norms mandatory. This means that the proposer (customer) will need to submit the requisite KYC documents.

In case of a change of surname after marriage, the insurer will ask for KYC documents and the marriage certificate for verification.

So, is a family floater plan right for you? It may not be necessary for working couples to buy one after marriage, but it does offer higher coverage per claim and the restoration benefit across products. Plus, porting requests can be made up to 60 days from the expiry date of the previous policy, and tax benefits can still be claimed under Section 80D of the Income Tax Act, 1961. It’s worth considering all these points before making a decision that will impact your healthcare.

Navneet Dubey
Navneet Dubey is a personal finance writer and artist. Over the past decade, he has written feature stories on insurance, financial planning, lending and borrowing.
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