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Family Health Insurance: Who Is Included In Your Cover?

Private health insurance is a great way to have peace of mind around your healthcare. When it comes to the health of your children, it’s a good idea to include them in your policy to ensure that they are also covered in case something happens.

But when should you consider a family policy? And when do your children stop being included in your health cover?

Why Take Out Family Health Insurance?

When you have a family health insurance policy, everyone in your family can access the same health benefits. This means everyone can go to a private hospital if needed, and access the included extras in your policy, like optical or dental care. Both you and your kids will get treatment when you need it, without the need for public hospital waiting lists.

The bonus is that kids are included in a family policy regardless of how many there are. You just need to provide some details, and your children can be added to the same policy. 

Common Times To Consider Family Health Insurance

Many Australian adults will already have singles or couples health insurance, but may consider switching to a family policy when they have children or at a different time in their kids’ lives.

Some of the common times when parents purchase family health insurance cover include:

  • Newborns. When you’re pregnant, your related healthcare may be covered in your singles or couples cover. But as soon as you have a newborn, they are not covered by your insurance anymore. If you want your baby to have health insurance right away, it’s a good idea to take out cover early.
  • Young children. As kids grow, things often come up that require healthcare. Active kids can have accidents on the playground that may result in a trip to the emergency room. Kids will also often need glasses, orthodontic work, and even podiatry as they grow into their bodies.
  • Teenagers. They may be growing in independence, but your teenaged kids still need help with healthcare. Teenagers playing competitive sport may need access to physio. Mental health cover can also be helpful during tricky teenage years.

Tax Benefits For Families With Private Health Insurance

It’s not just peace of mind about your children that is an incentive to get health insurance – you get tax breaks too!

The private health insurance rebate is based on income and applies to hospital and extras policies. You can claim your rebate on your tax return, or as a discount on your health insurance premium.

Having a family private hospital insurance policy can also save you paying a surcharge on the Medicare Levy. Depending on you and your partner’s combined income, you might face a Medicare Levy Surcharge of 1 to 1.5 per cent extra on your Medicare Levy at tax time.

What Are The Age Limits On Children For Family Policies?

These days our kids stay at home longer than ever and may still be financially dependent even after they turn 18. Age limits on family health insurance policies can range from 18 to 25 years old, depending on whether your children are still studying or if they’re employed full time. You may need to pay a bit extra to include them on your policy in some circumstances.

Sally Writes 07 Jul 2021