Can I get private health insurance for kids only?

Whether it’s dental visits or private hospital treatment for grommets, there are lots of good reasons to have private health insurance for your kids. But with living costs rising, you might be wondering whether you can get away with insuring your children only, and going without health cover for yourself and your partner. So, does private health insurance for kids only exist in Australia? The answer is yes, but it’s not available to everyone, and there are a few factors you have to take into account.  

Currently only 2 insurers offer private health insurance policies for kids only – Defence Health and Navy Health. Since these are both restricted insurers, their policies are only available to people who fit certain criteria. If you don’t fit that criteria, the only way to get health insurance for your children is to take out Single Parent or Family policies that cover both parents and children. 

Learn more about the criteria for joining Defence Health and Navy Health. 

Find out the ins and outs of child-only health insurance. 

How can I save money on health insurance for children? 

To save money on health insurance for children, consider the treatments and services you think your children are most likely to need – instead of going for full cover, you might find a lower tier of Hospital Cover or a lower level of Extras Cover is suitable. You can also increase your excess, and ask your insurer about different options for payment – sometimes insurers give a discount if you pay a full year in advance, for example, and paying by direct debit may also reduce your premium. 

There are 2 government subsidies that can reduce the cost of health cover, but unfortunately only one of them applies to policies that cover children only.  

• Private Health Insurance Rebate: If you earn $164,000 or less as a single person, or $328,000 or less as a couple or single parent, you could be eligible for the Private Health Insurance Rebate, which will reduce the cost of your health insurance premiums – so long as you and all your children have Medicare Cards. The Rebate applies to any type of health insurance policy – whether it’s just for you, for your entire household, or just for your kids.   

If you and your child’s co-parent are not a couple, whichever one of you pays the premium is considered the ‘Private Health Insurance Incentive Beneficiary’ (PHIIB) – the person whom eligibility for the Private Health Insurance Rebate is based on. 

• Age-based Discount: If you start cover before age 30 and maintain it, you may be eligible for the Age-based Discount on health cover for yourself (if your chosen insurer offers it). But unfortunately this reduction in premiums does not apply to child-only policies. 

Do government penalties apply to health insurance for children? 

There are 2 ways the government penalises people for not having private health insurance. But when it comes to child-only policies, the rules are different: 

• Lifetime Health Cover Loading: If you didn’t take out Hospital Cover before the age of 31, the Lifetime Health Cover Loading (LHCL) means you’ll pay higher premiums on policies that cover yourself – but not for child-only policies.  

“LHCL penalties do not apply to dependant-only policies based on the non-covered parent’s age.  LHCL is only applicable for covered adults,” confirms Angela Golding, spokesperson for Navy Health. 

• Medicare Levy Surcharge: The Medicare Levy Surcharge still applies if you have child-only health insurance. So if you earn more than $105,000 as a single person or $210,000 combined as a couple or family, and you don’t have Hospital Cover for every member of your household, you’ll have to pay between 1% and 1.5% extra at tax time. Taking out health insurance just for your kids won’t make you exempt from the Medicare Levy Surcharge.  
  Do I have to pay the Medicare Levy Surcharge? 

How do I find the best health insurance for kids? 

Since there are only 2 insurers offering child-only policies, the best way is to visit Defence Health and Navy Health’s websites to check your eligibility and get a quote. 

If you aren’t eligible for cover with those insurers, check out the cost of Single parent or Family policies in minutes using the healthslips.com.au calculator. It’s the only calculator that searches for every policy available, and gives you totally unbiased results. You don’t to enter any contact details, which means you can be completely anonymous.

You can also check your eligibility for the Private Health Insurance Rebate here.  

Try the healthslips.com.au calculator. 

healthslips.com.au does not provide general or personalised advice. Your particular circumstances are likely to impact the accuracy, completeness and relevance of the information or results. Take this into account before making a decision and talk to an expert for financial advice.     

Trudie McConnochie

Writer and Researcher

Knowledge is power – that’s the guiding principle behind everything Trudie writes, and it’s a philosophy she brings to her work at healthslips.com.au. By breaking down complex information into easy-to-understand blogs and stories, she aims to empower Australians to make the best choices and an informed decision around private health insurance.

Trudie understands firsthand some of the complexity of private health insurance having moved to Australia from New Zealand and having to navigate a vastly different public healthcare system and health insurance structure.

Trudie holds a Bachelor of Communication Studies (journalism major) from the Auckland University of Technology.

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