Family vs Individual Plans: The Cost Reality
A family plan covering two adults and two children might cost $200-250/month with Southern Cross ($2,400-3,000/year). Individual plans for each person might total $150-180/month ($1,800-2,160/year).
Family plans seem convenient, but they're often more expensive than buying individual policies. The trade-off is convenience (one policy, one deductible applied across the family, potentially family discounts on add-ons). Calculate both approaches before committing to a family plan.
The Age-Stratified Approach
A smarter strategy is differentiated coverage based on age and risk:
- Young adults (under 40, healthy): Surgical cover only. Cost: $30-50/month each.
- Parents (40-55): Major medical cover. Cost: $80-120/month each.
- Children: Typically added to parent plans.
This approach costs less than a full family plan while protecting those most at risk.
Children's Coverage: Is It Worth It?
Children are statistically low-risk for health conditions but high-need for minor care access (ENT, tonsillectomy, grommets, ortho issues). Some parents budget for private children's healthcare rather than insuring it.
However, a serious childhood diagnosis (cancer, cardiac condition, juvenile diabetes) creates substantial costs. Insurance is cheaper than catastrophic risk.
The question: will your children benefit from fast private access (immediate ENT appointment vs 8-week wait) or can they wait for public appointments? If you can wait, child coverage is optional. If you value speed, include them.
Add-Ons: Where Families Typically Overpay
Dental and vision add-ons are pushed hard because they're high-margin for insurers. For a family of four, adding dental might cost $60-80/month ($720-960/year). Realistic dental costs: cleanings and checkups $300/year, fillings occasional. Vision costs: eye test and glasses $200-300/year. The add-on rarely provides good value for families.
Maternity cover (if you plan more children): $15-30/month additional. If you're planning children within 2 years, include it (it has a waiting period, so you must have it before you become pregnant). If you're done having children, drop it.
The Excess Strategy for Families
A family might have a $500 excess applied per claim, meaning each person's first claim in the year costs $500. For a family with two active kids and two adult parents, you might hit that excess twice ($1,000).
Alternatively, a $1,000 excess per family per year means once you claim $1,000 total, everything after that is covered. This is usually cheaper. Ask your insurer about both models when quoting.
Our Recommendation
For most families: major medical cover for adults, hospital-only for children, $500-750 excess, skip dental and vision add-ons. Review annually as children grow and your needs change.