Key Takeaways
- A couples policy generally costs the same as two singles policies because health funds have to charge the same premium per person under community rating rules.
- Having two singles policies means each person can tailor their own cover, which can sometimes mean better value (depending on individual health needs).
- While not cheaper, having a shared policy can make payments and paperwork easier to manage – especially for families planning to grow.
Australia's community rating system
One question we hear from many couples: “Would it be cheaper if we just had one policy between us?” The short answer is? Probably not.
Australia’s community rating system means that all health insurance policyholders are charged the same base premium for the same product, regardless of age, gender, health status or otherwise. In other words, a couples policy (two adults on one policy) costs roughly the same as two singles policies – with no discount simply because you’re sharing.
But while the cost might not be different, the structure and flexibility certainly are. So let’s dig into the main benefits and drawbacks between singles vs couples insurance – and help you decide which one better suits your lifestyle and budget.
What is singles vs couples health insurance?
Singles Insurance
This is a policy that covers just one person. It can be hospital-only, extras-only or combined. If you’re a single adult – whether you’re living alone or in a relationship – you can take out a singles policy.
Couples health insurance
A couples policy is a shared plan for two adults living together – married, de facto or in a same-sex relationship. You’ll be covered under the same policy and will share the same level of cover and policy rules.
Which is cheaper: Singles or couples health insurance?
Let’s bust a common myth: couples cover is not automatically cheaper than two singles policies.
With community rating, all policyholders pay the same base rate for the same level of cover. So whether you’re sharing a policy or each have your own, the price per person is the same – unless one of you qualifies for a higher Lifetime Health Cover loading or government rebate, in which case separate policies might save you more.
So when it comes to the question of “Which is cheaper: singles or couples health insurance?” the answer is: usually, it’s the same. That being said, when you factor in your health needs and future planning, there’s more to consider than just cost.
When two singles policies might be better
There are several instances where having separate policies might make more sense:
1. You have different health needs
Maybe one of you needs cover for major dental or optical, while the other only wants physio. Or one partner is planning pregnancy and the other isn’t. A shared policy forces you into the same cover – which might not suit both. Having separate singles policies lets each person:
- Tweak their hospital or extras cover to their specific needs.
- Avoid paying for services they’ll never use.
- Get special benefits, like loyalty programs or higher extras limits.
2. One partner has LHC loading
If one of you took out hospital cover after turning 31 and the other didn’t, the older partner will have LHC loading (2% extra per year they delayed). In a couples policy, both partners share this cost. With singles policies, the loading is only applied to the partner who incurred it.
3. You want more flexibility to switch
Having your own policy makes it easier to switch funds or plans if your circumstances change. This is especially handy during:
- Job changes
- Income fluctuations (impacting the private health rebate).
- Relationship transitions.
Portability
Don’t re-serve waiting periods when you switch to a new health fund or policy
“John was immediately covered for a hip replacement in private hospital because he had already served his waiting periods for joint replacements on his old policy”
When couples health insurance might be better
That said, couples cover has some clear advantages too:
- Simpler payments and admin: It’s just one premium, one policy number and one lot of paperwork. This can make budgeting and tax time simpler.
- Easier to add children later: If you plan to grow your family, it’s easier to convert a couples policy into a family policy than juggling two singles. You’ll also keep your waiting periods if your cover stays continuous.
- Shared extras limits can work for some: On some policies, the extras limit is pooled. If one partner uses extras all the time (e.g. regular dental or physio), they can use more of the joint limit – although this could also be a disadvantage.
- You might qualify for higher rebates: Couples are assessed for the private health insurance rebate on combined income. If you’re both earning low to moderate incomes, you might get a better rebate together than separately.
What’s covered under singles and couples policies?
Here’s the current list of health insurance providers who meet our criteria for fairness and transparency:
Both policy types have the same options. Hospital cover takes care of the cost of treatment in a private hospital. Choose from Basic, Bronze, Silver or Gold tiers. Extras cover includes services like dental, optical, physio, chiropractic and more. And then there’s combined cover, which bundles hospital and extras into one policy.
It’s important to note that couples insurance doesn’t include more by default. You’ll still need to actively choose a policy that includes things like:
- Pregnancy and birth (with 12-month waiting periods).
- Orthodontics or high-cost dental.
- Mental health services.
- Weight loss or joint-replacement surgery.
What are Australians choosing?
According to the latest health insurance figures:
- 21% of people covered by a hospital policy in Australia have couples cover.
- 24% are covered under a singles policy.
- 50% are on family cover.
- 5% are on single-parent policies.
And more than 15 million Australians have private health insurance in total. This should show you that while couples cover is popular, a substantial number of people still go for singles policies – likely due to the flexibility.
Choosing what’s right for you
So, which should you choose – singles vs couples insurance? It comes down to:
| Singles | Couples | |
|---|---|---|
| Cost | Same per person | Same per person |
| Flexibility | High | Low |
| Simplicity | Moderate | High |
| Customise your cover | Yes | No |
| Shared limits | No | Sometimes |
| Best for | People with different health needs | Couples with similar needs and joint budgeting |
To sum up...
If you and your partner have similar health needs or plan to grow your family, a couples policy might work best. But if you have different priorities and health conditions, or you’re on different tiers of cover, then you might save money and get better value by choosing two singles policies instead.
At Fair Health Care Alliance, we can help you compare your options. Whether you want to combine or keep things separate, we’ll help you understand your cover and make sure you’re getting exactly what you pay for.
FAQ's
Couples cover is usually the same price as two singles policies, unless one person qualifies for a rebate or exemption that the other doesn’t.
No. You must both share the same level of hospital and/or extras cover on a couples policy. If you’d prefer to customise your cover, you’ll need to take out separate singles policies.
Not by default. You’ll need to choose a hospital cover tier that includes pregnancy – usually Gold or Silver Plus – and serve the 12-month waiting period before claiming.
