Protecting your loved ones with family health insurance

Whether you're starting a new family or welcoming a new addition, family health insurance isn't just a policy – it can be a step forward for your family's wellbeing. Navigating the world of health insurance can be daunting. But understanding how family health cover works can make all the difference in safeguarding your loved ones' health.

In this guide, we'll explore what family health insurance is, how it works, and the different types of coverage available to help you make an informed decision that can meet your family's needs.

What is family health insurance?

In Australia, family health insurance is a type of private health cover designed to protect parents and dependent children under a single policy.

Instead of managing separate plans for each person, a family health insurance policy bundles everyone together. This comprehensive approach can mean that every family member has access to the same necessary medical services when they need them most.

But what exactly does it cover? Family health insurance is similar to individual private health insurance and can provide a range of benefits depending on the level of cover you choose. Whether it's routine check-ups, emergency treatments, or specialist care, you can select from various options to create the best health insurance plan for your family.

By tailoring your policy to your family's unique health needs, you can help ensure that everyone receives appropriate care without the stress of unexpected medical bills.

How does family health insurance work?

Family private health insurance works by pooling all eligible family members into one cohesive policy. You pay a regular premium – usually either weekly, monthly or annually – and in return, your family can gain access to a variety of medical services, depending on the level of cover you choose and your eligibility

The policy you choose outlines what medical services are covered, which can range from basic hospital treatments to comprehensive packages that can include extras like physiotherapy and dental care. When a family member requires medical treatment, you can claim the eligible costs through your health insurer, reducing or eliminating out-of-pocket expenses. Having a single policy often means less paperwork, dealing with a single insurer and one set of terms and conditions.

Family health insurance is designed to be flexible. As your family grows or your needs change, you can adjust your level of cover. For example, you can add a new baby to your policy or upgrade your plan to include more services as your children grow older. This adaptability can help ensure that your family’s health insurance remains relevant and continues to meet your family's evolving needs.

Comparing the different types of family health insurance policies

When it comes to choosing the best health insurance plan for your family, it's essential to understand the different types of coverage available. The main options include family hospital cover, family extras cover, and combined family hospital and extras cover.

Family hospital cover

Family hospital cover helps take care of the costs associated with in-hospital treatments. This can include expenses like accommodation, surgery fees charged by surgeons and anesthetists, medical tests such as X-rays and blood tests conducted during your hospital stay, and theatre fees for use of operating theatres.

Having private hospital cover can mean you have the chance of being seen by the same doctor of choice, avoid long public hospital wait times, and have access to a private room (subject to availability). This can be particularly beneficial if a family member requires surgery or specialised treatments.

Family extras cover

Extras cover, also known as ancillary cover, helps cover services not typically covered by Medicare or standard hospital insurance. This can include:

• Dental care like routine check-ups, fillings, and orthodontics
• Optical services such as eye tests, prescription glasses, and contact lenses
• Physiotherapy treatments for injuries and physical rehabilitation
• Chiropractic services for spinal and musculoskeletal issues
• Alternative therapies like acupuncture or naturopathy

Family extras cover can help your family access these essential services without incurring significant out-of-pocket expenses. It can be especially useful for families with active kids who might need regular dental check-ups or physiotherapy sessions.

Combined family hospital and extras cover

For comprehensive protection, combined family hospital and extras cover can offer the best of both worlds. This type of health insurance plan for families includes all the benefits of hospital cover as well as the perks of extras cover.

Combined cover provides extensive coverage for your family's health needs, offering peace of mind that you're protected in a range of medical situations. While it might come with a higher premium, the range of services covered can result in long-term savings, especially if your family frequently uses them.

Under family health insurance, all members will generally be covered by the same level of extras cover. Typically, you can't choose different inclusions for each family member – everyone shares the same benefits. If you want tailored coverage for different family members, you would then need to take out separate policies.

This unified approach simplifies policy management and helps ensure that all family members have consistent access to healthcare services.

Family health insurance FAQsFrequently Asked Questions, answered

Navigating family health insurance cover can be tricky. Here are answers to some common questions to help you make informed decisions.

How much does family health insurance cost?

The cost of family health insurance varies widely based on several factors:

• Level of cover: Basic policies tend to be cheaper but cover fewer services. Comprehensive plans tend to come with higher premiums but offer a more extensive coverage.
• Number of dependents: More family members on the policy usually means higher premiums.
• Excess and co-payments: Choosing a higher excess can reduce your premiums but means you'll likely pay more when making a claim.
• Insurer and policy options: Different insurers offer various plans at different price points.

It's crucial to compare policies and understand what you're paying for to find a plan that fits your budget and meets your family's needs.

Is family health insurance cheaper than individual?

In many cases, family health insurance can be more cost-effective than purchasing individual policies for each family member. One reason for this is insurers often offer reduced premiums when multiple people are covered under one policy. By combining coverage, the overall cost can typically be less than if each family member had separate individual policies, potentially providing significant savings for households.

Another factor contributing to the affordability of family health cover is government rebates. In Australia, the Private Health Insurance Rebate is an income-tested rebate provided by the government to help with the cost of private health insurance premiums. Families that have two incomes within one household may be eligible for higher rebate thresholds compared to singles.

The income thresholds for families are doubled, allowing more families to qualify for the rebate or receive a higher percentage rebate than individuals with the same income level. This effectively lowers the cost of premiums for family policies, making them cheaper than individual ones.

Additionally, managing a single-family policy simplifies billing and administration. With only one premium payment to keep track of, it can reduce the risk of missed payments or lapses in coverage, which can sometimes occur when juggling multiple individual policies. This streamlined approach not only saves time but can also prevent potential financial penalties associated with missed payments.

Is family health insurance worth it?

Determining whether family health insurance is worth it depends on your family's needs and priorities. Here are some considerations:

• Government rebates: Depending on the age and income of both parents, check to see if you're eligible for a higher government rebate with a family policy.
• Adding children: Most policies allow you to add children to your cover as they are born, ensuring each child is covered from birth up to a certain age.
• Customisation limitations: You may not be able to customise the policy to suit each family member's specific needs, as all members usually have the same level of cover.
• Peace of mind: Knowing that your loved ones can have access to medical care when needed and are shielded from unexpected medical expenses can provide significant peace of mind.
• Access to preferred providers: Where eligible, you're able to select specialists and facilities that you trust for treatment in public or private hospitals.

While health insurance might seem unnecessary if your family is young, health is unpredictable and having coverage can be a safeguard against unforeseen events. Weighing these factors can help you decide if family health insurance is worth it for your situation.

How long can you stay on your parent's health insurance?

If you're wondering how long you can stay on family health insurance, we have good news. Some policies allow dependents to stay on until they're 31, which is when the Lifetime Health Cover (LHC) starts. This extension recognises that many young adults are staying at home longer due to education or financial reasons.

However, it's important to note that after a certain age, dependents often need to be financially reliant on their parents to qualify. Policies vary, with age limits and conditions differing between insurers, so make sure to check the specifics of your policy.

Staying on a family policy can be more cost-effective for young adults than purchasing individual health cover, but it's essential to understand the terms to know how long you can stay on your parent's health insurance.

Can you add a family member to your health insurance?

Yes, many insurers will allow you to add a family member to your existing health insurance policy. This process typically involves contacting your insurer to inform them that you want to add a new member, providing the necessary details, and updating your policy. Adding a new family member may adjust your premium, so it's advisable to discuss any changes with your insurer first.

Whether it's a newborn baby, a new spouse, or another dependent, adding them to your policy ensures they have immediate access to covered medical services. This flexibility is one of the advantages of family health insurance, allowing you to adapt your coverage as your family changes.

Keep Reading: Learn things you need to know about making claims in our how to guide to life insurance claims.

In today's ever-changing world, having comprehensive family health cover can be more important than ever. It not only helps safeguard your family's health but also provides peace of mind, knowing the wellbeing of your loved ones are taken care of and allows you to focus on what truly matters – spending quality time with them.

Whether you opt for family hospital cover, extras cover, or a combined policy, having the right health insurance helps ensure your family gets the care they need when they need it. Remember to assess your needs, compare policies, and review them regularly to ensure they still meet your requirements.

For more information on how these policies can work together, or if you're looking to find the right private health insurance policies for your family's needs, request a quote and compare policies from Choosi's Approved Product List today, for free. By comparing options, you can find the best health insurance plans for your family, that suit your budget and lifestyle.