Under 26? Key Factors to Consider When Choosing Between Your Parent's Health Insurance and Your Own
June 04, 2025 | Tags:
If you're under age 26, you can usually stay on your parents' health insurance plan, even if you have coverage available to you through your employer. But is it better to stick with your parents' plan?
Though having health coverage through your parents has perks, there are some key factors to be aware of, especially when trying to determine the right option for yourself. You may have specific health needs that require you to get your own plan, whereas others may have more substantial coverage staying on their parents’ health insurance.
It’s always best to consult your plan’s information or your employer’s benefits team to ensure you’re making the right decision based on your unique circumstances. Here are some of the biggest benefits and differences between your parents’ insurance versus your own plan:
Benefits of your parents’ insurance
- Cost-effective: In many cases, continuing to be covered by your parents’ insurance can be the more frugal option. Even if you need to contribute to premium or out-of-pocket costs, oftentimes these costs can be reduced compared to what you pay on your own plan. It is important to be aware that adult children may have additional costs depending on the individual plan, like out-of-network charges if they live in a different area, so figuring out what works best for you and your parents is crucial.
- Comprehensive coverage: There’s the chance your parents have a high-quality plan, as some employers can offer better benefits than others. If your healthcare needs are substantial, having additional options may end up saving you a headache down the road, but with the understanding that the “road” ends when you turn 26.
Benefits of your own insurance
- More customized plan options: Your parents’ insurance might be catered to their specific health needs and medications. When you have your own plan, you’re able to select based on your personal needs. If you don’t see many providers, it may make more sense to go with a higher deductible option for lower monthly premiums. Those with chronic conditions, however, may opt for a lower deductible since they will be more likely to hit it. This will depend entirely on what your personal situation requires, so if you need a bit more customization, consider having your own plan.
- Accessible healthcare and providers: Even though you may be on your parents’ insurance, it doesn’t mean you live with or near them. This can cause some issues finding in-network coverage local to you. Your own plan is typically catered to you and where you live, making it easier to have a wide variety of options and providers.
- More privacy: When on your parents’ plan, there’s the chance they may have access to your claims information, like providers and billing codes. If having full control of your healthcare information is a priority, you will achieve better privacy with your own plan.
What happens when you turn 26
When you turn 26, you will no longer be on your parents’ plan. Depending on the plan, this change can happen at the end of the month you turn 26 or at the end of the calendar year. You’ll be required to get your own health insurance, either through your place of work or as an individual plan.
There are minor exceptions to this rule, such as individuals with disabilities or those in certain states that allow more time on a parent’s insurance. As you approach your 26th birthday, it’s important to be aware of the steps you will need to take to transition your health insurance coverage.
You often have to make these benefit elections at certain times, however, losing coverage from your parents’ plan counts as a qualifying event. Showing your employer a HIPPA certificate of creditable coverage, which details the end date of your previous coverage and its duration, can allow you to enroll in your employer’s plan outside of the open enrollment.
You may lose access to certain healthcare providers when you switch plans as well. Make a list ahead of time so that you aren’t caught off guard by any changes. Whether you decide to stay on your parents' plan until you turn 26 or choose to get your own coverage earlier, knowing your options will help you make the best decision for yourself.
Find an insurance plan
Medical Mutual makes it easy to find the insurance plan that’s right for you. Visit our Individual Health Insurance page to explore your options and get started.