Whether you’re starting a family, looking to cover your children or reviewing your existing policy, family health insurance can help meet the healthcare needs of everyone in your household.
From hospital treatment to everyday services like dental and optical, the right policy can help reduce your out-of-pocket costs and give you greater choice over your family’s healthcare.
What is family health insurance?
Family health insurance is private health cover designed for couples (spouses or partners) with children, allowing parents and their dependants to be covered under one policy instead of each person holding their own.
A family policy can include a maximum of two parents or partners, but there’s generally no limit on the number of children you can include, provided they meet the insurer’s eligibility requirements.
If you’re a single parent, you can take out a single parent policy, which covers one adult and their dependant children and may cost less than a family policy.
Depending on the policy you choose, your family can be covered for hospital treatment, out-of-hospital care such as dental, optical and physiotherapy, or a combination of both. Everyone on the policy shares the same level of cover and inclusions, although individual benefit limits and restrictions may apply.
Who can be covered on family health insurance?
- Spouses and de facto partners: you don’t need to be married to share a family policy, although insurers may have their own requirements for recognising a partner.
- Dependent children: children and young adults under 21 can generally be included on a family policy, provided they meet the insurer’s eligibility requirements.
- Dependent students: children aged 18 to 31 who are studying full-time may be able to remain on their parents’ policy at no additional cost. Each insurer sets its own maximum age.
- Dependent non-students: those aged 18 to 31 who aren’t studying full-time may qualify for an extended family policy, which can cost more than standard family cover. Availability and age limits vary between insurers.
- Dependants with a disability: eligible adult dependants with a disability may be covered beyond age 31, depending on the insurer’s rules.
- Parents, siblings and grandchildren: other relatives can’t ordinarily be added as dependants.
- Dependants with a spouse or partner: generally can’t remain on their parents’ policy, although exceptions may apply for eligible people with a disability.
What does family health insurance cover?
What your family is covered for will depend on the type and level of cover you choose, with different policies offering different inclusions, exclusions and benefits.
Family hospital cover
Hospital cover helps pay for eligible treatment when you or a family member is admitted to hospital as a private patient. This can include hospital accommodation, theatre fees and medical treatment, although out-of-pocket costs may still apply.
Hospital policies are divided into four tiers: Basic, Bronze, Silver and Gold. Each tier has minimum requirements for what it must cover, with higher tiers including more treatments. Some insurers also offer ‘Plus’ policies, which include additional treatments beyond the minimum requirements of their tier.
For families, hospital treatments to consider include:
- Tonsils, adenoids and grommets, which are covered from Bronze upwards.
- Ear, nose and throat procedures, which are covered from Bronze upwards.
- Dental surgery, including wisdom teeth removal, which must be included from Silver.
- Pregnancy and birth services, which are included under Gold cover and may also be available with some Silver Plus policies.
Family extras cover
Extras cover helps pay for eligible treatments and services outside hospital that Medicare generally doesn’t cover. Depending on your policy, this may include:
- General dental, including check-ups, cleaning and fillings
- Major dental and orthodontics, including braces
- Optical, including glasses and contact lenses
- Physiotherapy and chiropractic treatment
- Speech therapy and psychology
- Podiatry and other allied health services
Extras policies have different benefit limits, which determine how much you can claim. Some limits apply to each person individually, while others are shared across the family. This is worth checking, particularly if several family members regularly use the same services.
Combined hospital and extras cover
Combined cover brings hospital and extras insurance together under one policy. You can often choose different levels of each, such as Bronze hospital cover with a more comprehensive extras policy, depending on your family’s needs.
What isn’t covered by family health insurance?
What’s excluded depends on the policy you choose, but private health insurance generally won’t cover:
- GP appointments and visits to public hospital emergency departments
- Most out-of-hospital medical services, such as specialist consultations and diagnostic tests, including X-rays and blood tests
- Cosmetic procedures that aren’t medically necessary
- Treatments specifically excluded from your hospital policy
- Extras services that aren’t included in your policy or claims that exceed your benefit limits
Even with comprehensive cover, you may still face out-of-pocket costs, so it’s important to check the policy’s inclusions, exclusions and limits before taking out insurance.
How do benefits and excesses work on family health insurance?
How much you can claim and what you need to pay out of pocket depends on your policy. Family health insurance can have different rules for hospital excesses and extras benefits, so it’s worth understanding how these apply to each family member.
Hospital cover
Many family hospital policies waive the excess for dependent children, meaning you won’t have to pay an excess if your child is admitted to hospital for a covered treatment.
For adults, an excess will generally apply when you’re admitted to hospital, although some policies limit how much you can pay per person or across the family each year.
For example, a policy with a $750 excess might require each adult to pay up to $750 annually, with a maximum of $1,500 across the family. However, the exact rules vary between insurers, and other out-of-pocket costs, such as doctors’ gap fees, may still apply.
Extras cover
Extras benefits can work differently depending on whether your policy has individual or shared family limits.
- Individual limits: each family member has their own allowance for eligible services. For example, if your policy includes $300 per person for optical, each family member could claim up to $300.
- Shared family limits: everyone covered shares the same allowance. For example, if your policy has a $1,000 family dental limit, claims made by any family member count towards that total.
Some policies also have combined limits across different services, meaning claims for one treatment may reduce what’s available for another. Check how these limits work, particularly if several family members regularly use the same extras services.
Do waiting periods apply to family health insurance?
Yes, waiting periods generally apply when you first take out family health insurance or upgrade to a higher level of cover. A waiting period is the time you must wait before you can claim benefits for certain treatments or services.
For hospital cover, the Australian Government sets the maximum waiting periods insurers can impose:
- 12 months for pre-existing conditions
- 12 months for pregnancy and birth services
- 2 months for psychiatric treatment, rehabilitation and palliative care, including pre-existing conditions
- 2 months for most other hospital treatments
If you're planning to have a baby, check your insurer's requirements for upgrading to family or single-parent cover before the birth. Insurers have different deadlines for adding newborns, and leaving it too late could affect when your baby is covered.
For extras cover, waiting periods are set by individual insurers. They’re commonly two to six months for services such as general dental, optical and physiotherapy, while orthodontics and major dental can have waiting periods of 12 months or longer. Unlike hospital cover, insurers can choose to reduce or waive extras waiting periods, sometimes as part of a promotional offer.
If you’re switching health insurers, you generally won’t have to serve waiting periods again for benefits you’ve already been covered for, provided you’ve completed the relevant waiting periods. However, waiting periods may apply to any new or increased benefits.
How much does family health insurance cost?
The cost of family health insurance depends on the type and level of cover you choose, your insurer and your personal circumstances. To give you an idea of what you could pay, here are some of the cheapest family health insurance premiums available through Savvy as of October 2026.
Hospital cover
| Tier | Prices from (fortnightly) |
|---|---|
| Basic | $72 |
| Bronze | $85 |
| Silver | $110 |
| Source: Compare Club, October 2026. Prices are for 35-year-old adults living in Sydney on a base-tier income with dependants aged under 21, selecting a $750 hospital excess. Gold hospital cover was not available for this comparison. | |
Extras cover
| Level of cover | Prices from (fortnightly) |
|---|---|
| Low | $12 |
| Medium | $30 |
| High | $60 |
| Source: Compare Club, October 2026. Prices are for 35-year-old adults living in Sydney on a base-tier income. | |
Combined hospital and extras cover
| Cover | Price from (fortnightly) |
|---|---|
| Hospital + extras | $84 |
| Source: Compare Club, October 2026. Based on the starting prices for Basic hospital and Low extras cover shown above. Actual combined policy premiums may differ. | |
What else can affect the cost of family health insurance?
Beyond the type and level of cover you choose, several other factors can influence how much you pay for family health insurance:
- Number of dependants: ading multiple children under 21 to your family policy generally won’t increase your premium, provided they meet your insurer’s eligibility requirements. For example, a family with three young children will usually pay the same premium as a family with one child on the same policy.
- Age and circumstances of dependants: some insurers allow adult children to remain on a family policy up to the age of 31. Full-time students can generally remain covered at no additional cost, while non-student dependants may attract higher premiums under an extended family policy. Age limits and eligibility rules vary between insurers.
- Hospital excess: choosing a higher excess can reduce your premiums, but means paying more upfront if you need hospital treatment. To qualify for an exemption from the Medicare Levy Surcharge (MLS), an eligible hospital policy must have an excess of no more than $1,500 for couples and families.
- Government rebate: depending on your household income and the age of the oldest person covered by the policy, you may qualify for the Australian Government Private Health Insurance Rebate, which can reduce your premiums.
- Lifetime Health Cover loading: if you take out hospital cover for the first time after the 1 July following your 31st birthday, you may need to pay an additional loading on your hospital premiums.
- Age-based discounts: some insurers offer discounts of up to 10% on hospital cover for adults aged 18 to 29 when they take out an eligible policy. These discounts can continue into later years, although they begin to reduce from age 41.
How do family health insurance premiums compare to couples and singles cover?
Family health insurance generally costs the same as couples cover, as premiums are primarily based on the adults insured. Dependent children under 21 can usually be included at no additional cost, meaning a family with children may pay the same as a couple without children.
Single-parent health insurance is generally cheaper than couples or family cover because only one adult is insured. However, it typically costs more than singles cover, as the policy also covers dependent children.
To give you an idea of the differences, here’s how the cheapest hospital premiums available through Savvy compare as of October 2026:
| Policy type | Prices from (fortnightly) |
|---|---|
| Singles | $36 |
| Single parent | $58 |
| Couples | $72 |
| Family | $72 |
| Source: Compare Club, October 2026. Prices based on comparable hospital cover and customer circumstances, with a $750 excess. | |
Top tips for choosing family health insurance
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Consider your family’s current and future health needs
Your family’s healthcare needs can change as your children grow. For example, younger children may need treatment for tonsils or grommets, while teenagers might need orthodontic treatment or optical care. Think about which services your family uses now and what you may need in the future.
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Check whether extras limits apply per person or per family
Some extras policies have individual benefit limits, while others have shared family limits. If several family members regularly claim for services such as dental or optical, a shared limit could be used up quickly. Compare how much each family member can claim before choosing a policy.
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Understand the rules for covering older dependent children
While children under 21 can generally be included on a family policy at no additional cost, the rules for older dependants vary between insurers. Some allow children to remain covered up to age 31, but their eligibility may depend on whether they’re studying full-time, and additional premiums may apply.
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Check your family’s preferred healthcare providers
If your family regularly visits a particular dentist, orthodontist or physiotherapist, check whether they’re part of your insurer’s preferred provider network. Using a participating provider may give you access to higher benefits or lower out-of-pocket costs, depending on your policy.
How to get a family health insurance policy through Savvy
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Decide what you need
Think about whether you want hospital cover, extras or both for your family.
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Fill out the online form
Apply for a quote by providing your personal details and cover preferences.
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Compare your options
Review policies to find cover that suits your family’s needs and budget.
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Take out your policy
Choose your health insurance plan and start benefiting from your cover.
