Parents, you’ve got questions, we’ve got answers.

Or just as likely, we’ve got questions and you’ve got answers.

Challenge: Life Changes

When Do Kids Stop Being Beneficiaries of Family Health Policy

Vote up!
Share on Facebook Share on Twitter Email this article


Parents want the best for their children’s health. As a result, they get private health cover for their kids to ensure that they get the best medical cover. However, this situation is not permanent as the kids grow to surpass the limits set by most insurance policies. When they cease to be dependent, they need their own health insurance coverage.

When does one cease to be a beneficiary? The answer to this question is unknown to many parents. Although there is no simple answer to this question, this article will pinpoint all important information you need to know about kids’ health insurance. The following are some of the factors that dictate the time to kick your children out of your policy.

Age of the Kid

Many insurance policies cover children on the age basis, with many dropping coverages on their 26th birthday. This coverage is however varied as some plans can cover the child to the age of 30 while others strictly cover until they are 26. Health insurance plans don't include in-laws and grandchildren. Therefore, if a dependent is married, they should consider taking their own medical covers. If parents are approaching 65 and plans to retire, the Medicare becomes strict and doesn’t include children of any age.

However, the situation in Australia is a bit different. Most healthcare policies cover children until the age of 21 if the dependents are living with their parents. If the dependents are students in an approved education system in the country, they remain covered by their parents until they are 25. Other covers classify dependents as child dependent, student dependent, and adult dependents. It thus pays to shop around and compare health insurance policies before settling for your best choice.


Some policies allow dependents to stay on their parents’ plans after they exceed the age limit if they are unmarried. However, if they live in different states, local doctors may not be part of the insurance plan meaning out-of –pocket expenditures. If the dependent is healthy and doesn’t spend a significant amount of their parent’s cover, they can schedule for meeting with the family doctor when they travel home.

Amount Paid By Employer towards Dependent Coverage

If the employer charges the same family rate irrespective of the number of children, it doesn’t cost more to have your kids covered until they have a stable income. If the employer raises premium charges for children exceeding three, it will be expensive to add the fourth child to your cover. It is expensive for single parents to add an extra child than it is for a two-parent family insured as a spouse.

Other Reasons

Other situations can make the dependent to be scrubbed off from parent insurance policies. If the dependent is not claimed as a tax dependent or when they turn down an offer of job-based coverage, the insurer reserves the rights to scrub them from the list of beneficiaries. If the dependent is on parent’s Marketplace plan, the children can remain covered until 31st of December of the year they turn 26 or the age permitted in your state.


If you are new to health insurance issues, it is advisable to compare policies. This is imperative as you can get a better plan that serves your interests and those of your dependents. Additionally, ensure that you understand the federal and state insurance regulations. Do not wait until you need to claim to understand your policy, ensure you understand your policy well before applying.

This post comes from the TODAY Parenting Team community, where all members are welcome to post and discuss parenting solutions. Learn more and join us! Because we're all in this together.