Money
The health insurance checklist for empty nesters
Becoming an empty nester marks the opportunity for something great: to be more intentional with your time, health and financial future.
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.
Embracing what’s next
Freedom… freedom! If you feel intense sadness about the kids moving out but also just a little bit happy – welcome to the club.
Based on a recent report about empty nesters in 2024, this is the time when 70% of Aussies shifted their focus towards fresh opportunities like travel, social connections and personal growth.
Adrienne, 58, lives in Turramurra NSW with her husband Ian, 60. While they’re nowhere near retiring – “I reckon I’ll keep working until they make up a bed for me,” jokes Adrienne, who works at a local aged care facility – they’ve recently become empty nesters. Something that turned out to be a surprising wake up call for both of them.
“I don’t know if it’s pure coincidence, but when my last baby moved out of home to go to uni last year, both Ian and I started having health issues,” says Adrienne. “Maybe the timing was due to suddenly being less busy and realising that our health wasn’t as ‘excellent’ as we’d always told ourselves, or maybe we’re just getting older?
“Either way, we both found our health went rapidly ‘down hill’ and it’s made me realise that without tip-top health, all our plans for getting older might be in serious jeopardy.”
Start feeling fulfilled: The secret to a happier, healthier life after 50? Go volunteer!
Private health insurance: check and save
As a result, Adrienne and Ian suddenly found themselves relying on their private health insurance more than they ever had when the kids were younger.
“I realised it had been years – decades – since we checked our health insurance policy and the one we had wasn’t actually suited to our current needs,” she says. “Like, we were still paying for obstetrics, but we didn’t have joint health cover. Which was a shock when Ian needed a full knee replacement and we weren’t covered. He was on the public waiting list for almost a year.”
More on this: Wait times and costs for 6 common surgeries
Earlier this year Ian had the knee replacement and the pair added health insurance check-ups to their list of annual health checks.
“Every year we plan to make sure we’re still covered for our needs and that we’re not paying more than we have to,” says Adrienne. “We’ve definitely learned our lesson.”
Here’s our list of what to cover in your own annual insurance check list.
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 if your children are still qualified as your dependents. If they are over 21 (or 25 if they're studying full-time), they may no longer be eligible to stay as a dependent on your family policy.
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
Whether you are with your spouse or are flying solo, once you’re no longer paying for family cover, switching to 2 x singles cover can help you focus on your individual health priorities. Depending on what those needs are, this strategy could potentially save you hundreds of dollars a year.
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 up to 2% to your premium for every year you delayed getting hospital cover after turning 31 – up to a maximum of 70%. That’s not the kind of birthday gift anyone wants!
If you’ve had continuous private hospital cover since age 31, you avoid the LHC loading. And while 31 may seem like a long time ago for most of us, it’s not ‘too late’ to reduce your LHC. While if you take out private patient hospital cover when you are 50 years old, you’ll pay 40% more per year, after 10 years the loading no longer applies. The longer you wait after 50, the higher the loading rises – it reaches up to 70% at its peak.
Once you have paid LHC loading for 10 years of continuous cover, you will no longer have to pay this loading. Just make sure you maintain appropriate hospital cover if you want to keep avoiding that extra cost later.
5. Compare loyalty bonuses or discounts
Some funds reward long-term members with perks like discounted premiums or no-excess hospital admissions after a certain age. 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.
7. Futureproof your health cover
As Adrienne found out, thinking ahead to the next 5 to 10 years can prevent costly surprises down the track. 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).
8. 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.
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Feature image: Canva/Dean Drobot
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