Family vs Individual Plans: The Cost Reality
Insurers price family cover and individual policies differently, and the gap between the two can be substantial in either direction depending on the ages involved and the plan. Ask for both structures to be quoted so you can see the difference for your own family rather than assuming one is cheaper.
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.