Why Australian parents say Gen Z least likely to contribute to insurance bills

Only 22% of parents reported that their adult dependants pay their full share.

Nearly half (48%) of Australian parents cover the entire policy cost without asking for contributions of their adult children, whilst 30% said they contribute partially, according to research from Money.com.au.

Only 22% of parents reported that their adult dependants pay their full share.

Allowing adult dependants to remain on a family policy drives costs up by about 25%.

Money.com.au’s analysis shows the average family policy with child dependants costs $3,125 (A$4,808) a year, compared to $3,910 (A$6,016) when adult dependants are included.

Gen Z adults were the most likely to let parents foot the entire bill, with 29% not contributing, compared to 26% of Millennials.

Amongst Gen Z, 45% contribute partially and 27% pay their full share, whilst 32% of Millennials contribute partially and 42% cover their share in full.

Chris Whitelaw, general manager of Health Insurance at Money.com.au, said many young Australians stay on their parents’ cover well into their twenties.

“The alternative is that they would forfeit cover entirely, as it can be cost-prohibitive for them to take out their own policy if they’re on a low income or just starting their career,” he said in a report.

Most health funds allow adult dependants aged 21 to 31 to be added to family policies, though it increases premiums.

Students may still be covered at no extra cost if they are unmarried and not in a de facto relationship.

The survey was commissioned by Money.com.au in July 2025 and conducted by Pureprofile with a nationally representative sample of 1,000 Australians.

($1.00 = A$1.54)