How long can a child stay on your private health insurance?

Health insurers are now allowed to cover young adults on their family's policy up to age 31
Bupa, Medibank, HCF, NIB and some smaller funds have increased the age cap for young adults on family policies from 24 to 31, and other health funds are expected to follow
Whether it makes financial sense to stay on your parents' policy depends on your health needs (and the needs of your parents)

Table of Contents Show

Will it save you money?
Do all health funds cover young adults on family policies?
What the big five health funds cover
Funds that cover adult children aged 25 and over
How much does it cost to add your adult kids to your family policy?
Hospital coverage
Combined coverage

With Australians feeling the pinch as the cost of living increases, many young adults are still living with their parents and now they can stay on the family health insurance policy.

As of 2021, the government has increased the age cap for adult children on their parents' policy from 24 to 31. At the same time, the age limit was removed for dependants living with disability (NDIS participants).

But if the young adult isn’t a full-time student, parents will cop an extra cost on top of their policy, so is it actually saving you money?

On this page:

Will it save you money?

While children and full-time students up to age 31 can often stay on the regular family policy for free, there would usually be an additional cost to keep older dependants and non-students covered – depending on the insurer, this can add up to 30% to your premium.

Given that a single policy usually costs 50% of a family policy, it's a good idea to keep your kids on your family policy while there's no additional cost.

But once you need an extended family policy, it's time to carefully consider everyone's cover needs. If you're on a top cover policy it could be cheaper insuring your adult dependant on their own low to medium cover policy – especially if you have a family income of $180,000 or higher and don't get the full health insurance rebate. Your adult dependant would be eligible for the rebate and a youth discount.

If you're a young adult under 32, the main questions you need to ask yourself are: do I need health insurance? And does my parents' cover meet my needs?

Older adults may have chronic health conditions or need cover for knee replacement or cataract eye surgery, which is only available through expensive Gold-tier health insurance policies.
Healthy young adults may only need Bronze cover, which includes cover for broken bones, flu, and skin and breast cancer.
If you only need dental check-ups and a few physio sessions now and then, extras cover may not be worth your while.

Some people will save money at tax time by buying health insurance. Find out if you're one of them.

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Do all health funds cover young adults on family policies?

The changes are not mandatory for private health funds and fewer than half of all funds have increased their age limits. Health insurers can also set different age limits, so while one fund may allow young adults on family policies up to age 28, another may allow them up to their 32nd birthday.

Funds also have different conditions when it comes to dependants and family policies. Normally you can’t be married or in a de facto relationship, but with some health insurers you also need to live with your parents, be financially dependent, or the insurer sets a cap on how much you can earn.

It's best to check with your fund and make sure you understand the rules.

What the big five health funds cover

Bupa, Medibank, HCF and NIB have already extended the age limit for adult children who are not married or de facto, while HBF hasn't yet changed the age cap. Here's what the funds cover.

Bupa

Adult children are covered on family policies for free until they turn 21.
Full-time students are covered on family policies for free until they turn 32.
Adult children younger than 32 can be covered on extended family policies for an extra cost.

HCF

Adult children are covered on family policies for free until they turn 22.
Full-time students are covered on family policies for free until they turn 31.
Adult children younger than 31 can be covered on extended family policies for an extra cost.

Medibank (includes AHM)

Adult children are covered on family policies for free until they turn 21.
Full-time students are covered on family policies for free until they turn 31.
Adult children younger than 31 can be covered on extended family policies for an extra cost.

NIB

Adult children are covered on family policies for free until they turn 21.
Full-time students are covered on family policies for free until they turn 25 (NIB says they're currently working on increasing this age limit to 31).
Adult children younger than 32 can be covered on extended family policies for an extra cost.

HBF

HBF hasn't yet changed the age cap. They cover:

Adult children on your family policy for free until they turn 21
Full-time students are covered on family policies for free until they turn 25
Adult children who earn less than $24,500 per year are covered on family policies for free until they turn 25.

Funds that cover adult children aged 25 and over

There are currently 25 private health insurers that cover young adults on family policies:

How much does it cost to add your adult kids to your family policy?

Using Medibank as an example, let's look at the difference in premiums between family and extended family policies for a family with a high income and high health cover needs.

Medibank covers adult children until they turn 21 and full-time students until they turn 31 on a family policy for free. Other adult children younger than 31 can be insured on extended family policies for an extra cost.

Medibank Gold Complete ($750 excess) and Top Extras for a family earning $280,000

Cost of family policy*	Cost of extended family policy*
$7562	$9635

*Annual premiums as of 1 November 2022 (after the 2022 premium increase). Cost does not include the health insurance rebate.

The additional cost here is $2073 (without the health insurance rebate). So if you wanted to instead take out a separate policy for your adult dependant, who has lower health cover needs, a Bronze policy and Budget extras policy may suit them.

Medibank Bronze Everyday ($750 excess) and Healthy Start Extras for a single 22-year-old earning less than $90,000 costs $1285, which includes the health insurance rebate and a youth discount.

In this instance, a separate Bronze policy ends up being almost $800 cheaper than a Gold-tier extended family policy.

The policies on offer from different funds will vary, so it's important that you carefully consider your personal circumstances before opting for an extended family policy just because it's available. Read more about health insurance for under 30s to find out whether it's right for you (or your child).

Stock images: Getty, unless otherwise stated.

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What you need to know

You can often be a dependant until you are 25.
Some funds will allow you to stay on a family policy until you are 31.
If you are not eligible, you can get hospital cover from $17 per week to cover you for accidents and ambulances.

How long you can stay on your parents' policy depends on the fund. Generally, funds will have separate rules for child dependants, student dependants and adult dependants.

The table below summarises the age limits of each type of dependant for every Australian health fund. The dropdown below the table contains more information on the conditions imposed by each fund.

Dependants age raised to 31

On 22 June 2021, the Private Health Insurance Legislation Amendment (Age of Dependants) Bill 2021 was passed, which will allow health funds to increase the maximum age of a dependant on a policy to 31. Age limits for dependants with a disability were scrapped completely.

There are a few reasons you might have to leave your parents' health fund and take out cover on your own. For example, if:

You turn 25. Before you turn 25, your parents will generally receive an email letting them know you'll no longer be eligible to be listed as a dependant on their health insurance policy. In some cases, this is earlier. As of yet, only 2 funds have updated their policies to 31 in line with the new government legislation.
You graduate. You can sometimes stay on your family policy for longer if you're a full-time student.
You start a full-time job. Most health funds will no longer classify you as a dependant once you get a stable, full-time job.
You get married. Most insurers state that in order to be classified as a dependant, you must be unmarried.

If one of the above applies to you, here are some of the cheapest health insurance options from Finder partners. They cover the basics you're most likely to need like emergency ambulance and dental.

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All prices are based on a single individual with less than $90,000 income and living in Sydney.

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In most cases, your health needs won't be the same as your parents', so why would you get the same policy? A 2017 survey conducted by Finder found that 28% of people took out cover with the same fund as their parents, which when you think about it doesn't make sense.

Take the time to sit down and work out what you want out of a policy. Hospital cover might not make sense to you at this stage of your life and that's fine. But, maybe you want cover for going to the dentist or visiting the optometrist. It's all about finding the value.

If you're young and fit, private health insurance can seem like an unnecessary expense, particularly once your parents are no longer footing the bill. Here's why it's a good idea to consider getting your own cover:

Extras are expensive. Whether you've been used to getting regular dental check-ups, sessions with a psychologist or occasional remedial massages for a sports injury, the cost of these can add up and be considerably more than the cost of insurance.
Emergencies happen. As mentioned before, those aged between 25 and 34 have a decent chance of winding up in the emergency room. Not only can health insurance cover the bill for the ambulance, if you require follow-up treatment for, say, a torn ACL, you'll be able to skip the public waiting list and be treated in a private hospital by a doctor of your choosing.

Whether you get hospital, extras or a combined policy will depend on your needs and can suit singles, couples and young families. But, it's all about working out which policy is right for you.

Hospital coverage

Hospital cover is designed to protect you against the cost of a wide range of in-hospital procedures. It includes cover for accommodation in either a public or private hospital, your choice of doctor, theatre costs and other expenses associated with your medical treatment. Hospital cover offers a long list of benefits for young singles, including:

Cover to suit your needs and budget. Australian private health funds offer a wide range of hospital cover options so that you can choose a policy that suits your needs and budget. There are even some policies specifically created to meet the health insurance requirements of young singles.
Tax breaks. Taking out hospital cover means you can avoid the Medicare Levy Surcharge and also access the Australian Government's private health insurance rebate to make cover more affordable.
Avoid Lifetime Health Cover (LHC) loading. If you take out private hospital cover before your 31st birthday, you can avoid paying extra for cover thanks to the LHC scheme.
Peace of mind. Hospital cover provides you with the confidence and peace of mind that comes with knowing you will be able to pay your medical bills if you ever suffer an unexpected illness or injury.
Cover for a wide range of services. From knee reconstructions and appendix removal to pregnancy and birth-related services, hospital cover provides protection against the cost of a wide range of in-hospital procedures.

Extras-only insurance provides cover for a wide range of out-of-pocket medical expenses that are not covered by Medicare. Sometimes also referred to as general treatment cover or ancillary cover, extras-only health insurance covers you for out-of-hospital medical services such as optical, dental, physio, chiro, podiatry, natural therapies and much more. There are plenty of reasons why young singles can benefit from having extras cover in place, including:

Choose cover that suits your needs. Whether you want basic extras cover for some essential treatments or comprehensive extras cover for a wide range of treatment options, Australian health insurers have extras cover policy options to suit everyone. Some insurers even have extras policies designed with young singles in mind.
Standalone or combined. You can take out standalone extras cover or combine it with hospital cover for a higher level of protection.
Ambulance cover. Many extras policies also include cover for the cost of emergency ambulance transportation and treatment, which is not covered by Medicare.
Reduce healthcare costs. Extras policies provide cover for the cost of a wide range of general treatments, allowing you to take better care of your health.
Government rebate. Taking out extras cover entitles you to the Australian Government's private health insurance rebate, which helps make cover more affordable.

Combined coverage

Combined cover is a health insurance policy that offers both hospital and extras cover in the 1 package. This allows you to enjoy the convenience of taking out the 2 main types of private health insurance – hospital cover for in-hospital treatment and extras cover for general treatments like optical and dental – in 1 policy. The vast majority of Australian private health insurers offer a range of combined cover options, and taking out this type of insurance has many benefits for young singles, including:

It's tailored to your needs. Many insurers offer combined cover options that have been specifically designed with the needs of young singles in mind. This means you only pay for the services you are likely to use and none that you won't.
You only have to manage 1 policy instead of 2. Combined cover allows you to manage your hospital and extras cover in the 1 policy. This can make it easier to compare, choose and purchase cover.
Potential discounts. When you purchase combined hospital and extras cover many funds have member-only discounts that will be available to you.
Wide range of cover. Having both hospital and extras cover in place means you are covered for an extensive range of in-hospital services and general treatment options.

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