While your children may beg to stay on the family health insurance policy for as long as possible (I know I did), they’ll eventually need to go it alone. They can usually stay on your cover until age 31, as long as they’re unmarried and still considered dependents, but this will depend on your chosen health fund.
The question is, once the kids leave your health insurance, where does that leave you? There may be ways in which you can save on a new policy now that you no longer need a family one.
Does removing your children from your policy save you money?
Unfortunately, you won’t necessarily see instant savings when your family policy changes to a couples policy. This is due to the fact that health funds usually price per adult rather than per person, which means kids are basically free on hospital cover. For example, Canstar’s Research Manager Keely Robinson notes that a Gold hospital policy is typically the same price for a couple as it is for a family. She does note that single parents may find savings when transitioning from a single parent hospital policy to one without cover for their children.
When it comes to a family health insurance policy, extras cover is one area where you can start to see the premiums add up. The kids need to be covered for those visits to the dentist, after all. When they come off your extras, you might see a saving, but this will depend on your level of cover and chosen health insurer.
Can empty nesters save money on their health insurance?
As you get older, your healthcare needs change, and there’s peace of mind in knowing your health insurance covers you for what life can throw your way. Unfortunately for your wallet, this can mean you might need higher tiers of hospital and extras cover, and this can be expensive.
As you advance to the next stage of life, you may find your health insurance costs shift, rather than shrink. For example, while you may no longer need pregnancy cover, you may still benefit from having coverage for joint replacements, cataracts, heart, back, and spine procedures. You’ll therefore need a Gold or Silver Plus hospital policy to be covered for these things. The same could be said for extras, as you won’t need orthodontics cover for the kids, but you’ll likely still want higher limits for major dental, optical, hearing aids, and physio.
That said, you still may be able to save as an empty nester, by increasing the excess amount on your hospital cover. Canstar Research found that couples with a Silver Plus policy moving from a $1,000 excess to a $1,500 one could save around 7%, or about $410 a year before the private health insurance rebate is factored in. Those with a Bronze Plus policy could save a larger percentage (about 9%) but fewer actual dollars, as premiums on Bronze policies are generally lower to begin with. Overall this means you could save money while keeping the coverage you need intact.
Keep in mind that the tables below only cover hospital-only policies. Gold, Basic, and the non-Plus tiers, combined hospital and extras, and single parent policies aren't included.
Median national annual hospital insurance savings from raising your excess, by policy type, hospital tier, and excess change (before rebate)
Profile | Tier | Excess | Saving % | Saving $/yr |
Single | Bronze | $500 → $750 | 9.1% | $174 |
Silver | $250 → $750 | 18.3% | $557 | |
Silver | $500 → $750 | 7.2% | $211 | |
Couple | Bronze | $1,000 → $1,500 | 9.1% | $348 |
Silver | $500 → $1,500 | 18.3% | $1,104 | |
Silver | $1,000 → $1,500 | 7.1% | $411 | |
Family | Bronze | $1,000 → $1,500 | 9.1% | $375 |
Silver | $500 → $1,500 | 18.3% | $1,123 | |
Silver | $1,000 → $1,500 | 7.1% | $431 |
Source: www.canstar.com.au – 14/10/2026. Based on hospital-only insurance policies on Canstar’s database for singles, couples, and families. Single parent family, OSHC, visitor, and corporate policies are excluded. Savings compare the same policy at two excess levels, with only the excess changed. Couple and family excesses are per policy ($1,500 per policy is $750 per person). Premiums are before the Australian Government Private Health Insurance Rebate. Figures are the median saving across policies, weighted by the proportion of hospital insured persons in each state per APRA Quarterly Private Health Insurance Statistics (June 2026). Annual figures are 12 monthly premiums.
Median national annual hospital insurance savings from raising your excess, by policy type, hospital tier and excess change (after rebate)
Profile | Tier | Excess | Saving % | Saving $/yr |
Single | Bronze | $500 → $750 | 9.1% | $132 |
Silver | $250 → $750 | 18.3% | $423 | |
Silver | $500 → $750 | 7.2% | $160 | |
Couple | Bronze | $1,000 → $1,500 | 9.1% | $264 |
Silver | $500 → $1,500 | 18.3% | $838 | |
Silver | $1,000 → $1,500 | 7.1% | $312 | |
Family | Bronze | $1,000 → $1,500 | 9.1% | $285 |
Silver | $500 → $1,500 | 18.3% | $852 | |
Silver | $1,000 → $1,500 | 7.1% | $327 |
Source: www.canstar.com.au – 14/10/2026. Based on hospital-only insurance policies on Canstar’s database for singles, couples and families. Single parent family, OSHC, visitor and corporate policies are excluded. Savings compare the same policy at two excess levels, with only the excess changed. Couple and family excesses are per policy ($1,500 per policy is $750 per person). The Australian Government Private Health Insurance Rebate, Base Tier for under 65s, of 24.118% has been applied to premiums. Figures are the median saving across policies, weighted by the proportion of hospital insured persons in each state per APRA Quarterly Private Health Insurance Statistics (June 2026). Annual figures are 12 monthly premiums.
Bear in mind though, your excess is payable once per calendar year, for your first hospital admission, so you’ll need to budget for this. A higher excess means paying more if you need to go to hospital. For a couple moving from $1,000 to $1,500 excess, that's up to $500 more out of pocket in a year they're admitted. With about $410 saved a year before rebate ($312 after), it takes around 1.2 to 1.6 claim-free years to come out ahead.
Here are some other things to keep in mind when changing from a family policy to a couples or singles one:
- Think about your current life stage and the cover you may need now and in the near future. Keep in mind that waiting periods apply, as generally you’ll need to wait 12 months before you’re covered for pre-existing conditions
- If your current health insurer isn’t offering you a competitive policy, consider asking for a discount on your current premium, or look at the policy options from other insurers
- Check if a couples policy offers you value for money relative to your needs, or if you’d be better off with two singles policies
- If you need a hand reviewing your options, you could book a call with one of our health insurance specialists who can assist you with finding new cover
