Act early to avoid Lifetime Health Cover loading

Our 30’s are an exciting time – one of change, of growth, of learning.

For some, it is a time to travel the world, while others may be starting a family or building their career.

With so much going on, it is easy to overlook the need for hospital cover when you are younger and feeling fit, healthy and on top of the world.

Unfortunately, the longer you wait to get hospital coverage, the more you may end up paying.

Lifetime Health Cover (LHC) is a Government initiative that started on 1 July 2000 with the aim of encouraging people to take out hospital insurance by the time they turn 30 and to maintain their cover.

If you don’t get complying hospital cover before you turn 31, you pay an LHC loading of 2% on your base hospital premium for each year you are aged over 30 when you do join. This loading is only removed after 10 years of continuous hospital cover.

LHC is designed as an incentive for people to take out hospital cover earlier in life, and to maintain that cover.

If you’ve recently celebrated your 30th birthday and are weighing up the need for hospital cover, it makes sense to take out a policy as soon as possible to ensure that you don’t end up paying an additional surcharge in addition to your premium.

If you wait to take out cover, you could end up paying a higher premium than someone who didn’t wait and who does not have an LHC loading.

You may question the need for private hospital cover – Australia is lucky to have a robust public system. The beauty of the Australian healthcare system, however, is that it allows us the ability to choose, and those who choose to have private hospital cover do so for a variety of reasons.

These include:

  • Choice of surgeon/doctor
  • Choice of hospital
  • Shorter waiting times for elective procedures – skip the waiting list
  • Private hospital room
  • Peace of mind

The choice is yours, and only you can decide what is the best option for your health.

If you’re thinking about taking out hospital cover, you can view our range of hospital products.

Find out more about LHC.