The Federal Government introduced the Lifetime Health Cover (LHC) age loading to encourage Australians to take out private hospital insurance 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. Give our online LHC Calculator a go now to instantly check your LHC eligibility.
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 cover since 1 July 2000;
were born on or before 1 July 1934;
are an Australian citizen or resident who is overseas at the time of the deadline, but takes out Hospital cover within 12 months of your return;
are a new migrant aged 31 or over but take out Hospital cover within 12 months of being eligible for Medicare;
are a member of the Australian Defence Forces;
are a Department of Veteran Affairs Gold Card holder.
Please also note:
LHC doesn’t apply until the 1st of July following your 31st birthday, and it’s later removed from your private hospital insurance premium after 10 years of continuous cover.
LHC doesn’t apply to Extras Cover or Overseas Visitors Cover
If you've been outside of Australia you can supply an International Movements Record from Department of Home Affairs and this may reduce your LHC. Please contact us to discuss this further.
How is Lifetime Health Cover loading calculated?
If you don’t have private hospital insurance by the 30th June following your 31st birthday, but decide to take it out later on in life, the Government will apply a 2% ‘Lifetime Health Cover’ loading to your eventual premium for every year you weren’t covered (up to a maximum of 70% - ouch!). For example, if a single 37 year old takes our Hospital Cover for the first time today, their LHC loading would be 14%. That’s why it really pays to take out private hospital cover before your 31st birthday.
For couples and families however, the 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 a combined loading of 18% initially (6% + 12%), so the final loading applied to their joint policy would be 9%. If you find that you’ve incurred a loading, you’ll be required to pay this on top of your Hospital cover base premium that you're initially quoted . If you decide to join HIF online, your loading will automatically be applied to the quoted amount once you enter your date of birth.
Want to learn more about LHC?
We know that LHC loading can be complicated due to different circumstances, such as adding a partner, previous covers and being overseas. Don't worry, just call our friendly team on 1300 13 40 60 or email us at hello@hif.com.au if you have any questions relating to LHC loading.
Short video
Hear from HIF Executive Manager Anne Humphrey as she meets the team from Everyday Health TV to explore the impacts of this confusing government legislation.