Free medical insurance for young adults on parents’ policy

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Must know

  • Health insurers at the moment are allowed to cover young adults on their family’s policy as much as age 31
  • Some smaller funds have increased the age cap for family policies from 24 to 31, and others are expected to follow later this yr 
  • Whether it makes financial sense to remain in your parents’ policy is determined by your health needs (and the needs of your parents)

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

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

Do all health funds cover young adults on family policies?

The changes will not be mandatory for personal health funds and thus far only just a few funds have increased their age limits. Health insurers may also set different age limits – while one fund may allow young adults on family policies as much as age 28, one other may allow them as much as 31.

Funds even have different conditions on dependents they permit on family policies. Normally you can’t be married or in a de facto relationship, but with some insurers you furthermore mght must live together with your parents, be financially dependent, or the insurer sets a cap on how much you’ll be able to earn. 

It is best to envision together with your fund and ensure that you understand the foundations.

What the massive five health funds cover

Thus far Bupa, Medibank, HBF, HCF and NIB haven’t prolonged their age limits for adult children on family policies, but here’s what they do cover.

Bupa covers:

  • adult children on your loved ones policy totally free until they turn 21
  • full-time students on family policies totally free until they turn 25
  • any adult children younger than 25 on clan policies for an additional cost.

HBF covers:

  • adult children on your loved ones policy totally free until they turn 21
  • full-time students on family policies totally free until they turn 25
  • other adult children who earn lower than $24,500 per yr totally free until they turn 25.

HCF covers:

  • adult children on your loved ones policy totally free until they turn 22
  • full-time students on family policies totally free until they turn 25
  • any adult children younger than 25 on clan policies for an additional cost.

Medibank covers:

  • adult children on your loved ones policy totally free until they turn 21
  • full-time students on family policies totally free until they turn 25
  • any adult children younger than 25 on clan policies for an additional cost.  

NIB covers:

  • adult children on your loved ones policy totally free until they turn 21
  • full-time students on family policies totally free until they turn 25
  • any adult children younger than 25 on clan policies for an additional cost. 

Funds that cover adult children aged 25 and over

There are currently nine private health funds that cover young adults on family policies:

Will it prevent money?

While children and full-time students as much as age 24 can often stay on the traditional family policy totally free, there would often be a value to maintain older dependents and non-students on the family policy – depending on the insurer, this might add as much as 30% to your premium. Provided that a single policy often costs 50% of a family policy, that is certainly a saving.

The important questions you could ask yourself are: do I would like medical insurance? And does my parents’ cover meet my needs?

  • Older adults can have chronic health conditions or need cover for knee alternative or cataract eye surgery, which is simply available through expensive Gold-tier medical insurance policies.
  • Healthy young adults may only need Bronze cover, which incorporates cover for broken bones, flu, and skin and breast cancer.
  • For those who only need dental check-ups and just a few physio sessions from time to time, extras cover is probably not price your while.

How much does it cost so as to add your adult kids to your loved ones policy?

Case study: Family cover in Tasmania with HCI

HCI was one in all the primary health funds to introduce the changes in late 2021, so let’s take a look at the difference between their family and clan policies.

  • Young adults as much as the age of twenty-two will be insured on their parents’ normal family policy totally free.
  • Young adults aged between 23 and 31 will be insured on an clan policy for an additional cost.

Cost of Gold cover with $750 excess combined with Premier Extras cover*:

  • $6234 (family)
  • $7481 (clan).

Conditions:

  • young adults should be primarily reliant on their parents for maintenance and support – they can not have a spouse or de facto partner. 
  • full-time students aged between 23 and 31 must make a student declaration every year
  • non or part-time students aged between 23 and 31 must live with their parents.

*Premium prices are without the medical insurance rebate.

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