What is Lifetime Health Cover loading?

The Federal Government introduced the Lifetime Health Cover loading to encourage Australians to take out private hospital cover at a younger age. Basically, it recognises the length of time you’ve had private health insurance and rewards that loyalty by offering lower premiums – so the earlier you take out health cover, the cheaper your premiums.

In this short clip, HIF Executive Manager Anne Humphrey joins the team from Everyday Health TV to explore the impacts of this confusing government legislation. 

Does Lifetime Health Cover loading apply to everyone? 

No, there are some situations where you won’t have to incur the loading. These include if you:

  • Had continuous hospital since 1 July 2000
  • Were born on or before 1 July 1934

How is Lifetime Health Cover loading applied? 

For every year over the age of 30 that you don’t have private hospital cover, a 2% loading is applied to the cost of your insurance (and increases each year until it reaches 70%).

For example, a single 37 year old would pay 14% LHC loading - so it really pays to take out private hospital cover now. For couples and families however, your loading is initially calculated based on your respective dates of birth and then halved. For example, a couple aged 33 and 36 years would have generated a combined loading of 18% initially (6% + 12%), so the final loading that is applied to their joint policy is 9%. If you find that you will incur a loading, you will be required to pay this on top of the base premium that you're initially quoted for your hospital cover. If you decide to join HIF online, your loading will automatically be applied to the quoted amount once you enter your date of birth.

Still unsure about LHC? Don't worry, just get in touch. We know that LHC loading can be complicated due to different circumstances, such as adding a partner, previous covers and being overseas. Call our friendly team on 1300 13 40 60 or email us if you have any questions relating to LHC loading. 

Important, please note:

  • Lifetime Health Cover loading does not apply to Extras Cover
  • Lifetime Health Cover loading does not apply to Visitors Cover
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