Becoming an empty nester marks the opportunity for something great: to be more intentional with your time, health and financial future.
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By Robyn Peña-Lopez

It’s true what they say about parenting: it’s not about raising children, but about raising adults who can eventually live without us. 

Ahh, the bittersweet feeling that no parent is ever truly prepared for... One moment we’re packing school lunches and setting bedtime routines, the next we’re standing at the doorway waving goodbye as our child steps into independence. 

But amidst the pride, worry, excitement (and most likely tears), there’s a realisation that life is shifting to a different chapter – one that’s all yours to write. 

Why now is the right time to review

1. Standardised PHI tiers make policies easier to compare

Australia’s private health insurance system now uses standardised hospital cover tiers — Basic, Bronze, Silver and Gold — with minimum clinical categories required at each level. Introduced under Federal Government reforms in 2019, these tiers make it easier to compare policies across funds and better understand what your cover includes.

2. Annual premium increases landed in April

Most funds applied their annual premium increases on 1 April 2026, following Federal Government approval. This year’s industry-average increase was 4.41%, the largest average rise since 2017. If you haven’t reviewed your policy since the April adjustment, you may now be paying more for cover that no longer suits your needs.

3. The new financial year can be a useful review trigger
‍July is a practical time to reassess your private health insurance as many Australians review their household budget at the start of the financial year.

If you switch to a comparable level of cover without a gap, you can usually retain waiting periods you’ve already served. Some insurers also reset extras limits during the year, including around the financial year, although reset dates vary by fund.

Your empty nester health insurance review checklist

Here’s our list of what to cover in your own annual insurance check list. Each one takes less than five minutes.

1. Headcount: who’s still covered?

As your children transition into adulthood, it’s important for your health insurance to adjust according to your needs to get the best value for money.

Check whether your children still qualify as dependants under your policy. Age limits vary by insurer, but many funds cover dependent children until age 21, or up to 25–31 if they are studying full-time or eligible under extended family cover.

Some funds offer “extended family” cover for a higher premium so it’s highly recommended to check with your insurer.

Read more: Take control of your health insurance and stop paying more than you need to

2. Downgrade to couples or singles cover

Once you no longer need family cover, compare couples cover against two separate singles policies. Depending on your needs and insurer, separate policies may sometimes offer better value or more tailored cover.

3. Peek into extras cover

It’s time to ask yourself: which extras do I actually use? 

Prioritise the services you need now and potentially in future – joint support, chiropractic care, hearing aids, physiotherapy or prescription glasses. Evaluate your current extras and tailor it to match your lifestyle and health priorities.

You could also choose to stop paying for services for your children use and select only those appropriate to your own medical needs. 

4. Check your hospital cover level

If you were covering maternity or child-related services, you can remove them from your policy (and probably should have done this years ago!). It might be smarter to focus on hospital cover for services relevant to people over 50s such as joint replacements, cardiac care or cataract surgery.

Consider a higher hospital excess

A simple way to lower your premiums is to increase your hospital excess. If you're fit and healthy, this could be a way to keep costs down without compromising on essential protection. It’s also worth checking if your policy offers flexibility to adjust the excess according to your needs.

What’s your LHC status?

‍Lifetime Health Cover (LHC) loading can add 2% to your hospital cover premium for every year you delay taking out eligible hospital cover after 1 July following your 31st birthday, up to a maximum loading of 70%.

For example, if you first take out hospital cover at age 50, you could pay 40% more in premiums due to LHC loading.

The good news? LHC loading isn’t permanent. Once you’ve held continuous eligible hospital cover for 10 years, the loading is removed.

If you’re unsure whether LHC applies to you, check with your insurer or review your policy details. It could make a meaningful difference to what you’re paying.

5. Compare loyalty bonuses or discounts

Some funds offer loyalty perks such as reduced excess, member rewards or other benefits for long-term policyholders. It’s worth checking what you're entitled to – or whether switching funds could save you more.

This is where a comparison website like Compare the Market steps in. There are plenty of great deals from other insurers and if your current insurer won’t match it, consider switching providers.

6. Futureproof your health cover

Your health needs likely won’t stay the same and even if you feel fit and healthy today, that can change quickly.

Evaluate your coverage for procedures like joint surgeries, cardiac care or increased dental needs. Your family history may provide a reasonable indication of what’s ahead (although taking care of yourself as you get older can make any bumps less likely).

7. Get quotes and shop around

Here’s our final tip: before switching policy types, shop around and don’t just accept the default downgrade your insurer might suggest. Some funds offer better value or more relevant extras so it’s ideal to be specific about what you actually use and what you’ll likely need in the future.

Use comparison tools like Compare the Market to see if better deals or more suitable policies are available now you’re at a different life stage. If you need to switch insurance providers to get a better deal, rest assured that you typically won’t have to re-serve any waiting periods for an equal or lower level of cover, even if you have a pre-existing condition.

A little comparison now could mean potential savings to put towards the things you enjoy as an empty nester. For Adrienne and Ian, that’s weekends away, fine dining and supporting Ian’s new-found love of long-distance cycling.

Citro may receive a small commission at no cost to you on any orders placed using the links in this article.

This article contains general information only. It is not financial advice and is not intended to influence readers’ decisions about any financial products or investments. Readers’ personal circumstances have not been taken into account and they should always seek their own professional financial and taxation advice that takes into account their financial circumstances, objectives and needs.

^{Feature image: Canva/Dean Drobot}

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