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If you are over 31 it’s important that you know what LHC is and how it may affect you.
What is LHC?
Lifetime Health Cover Loading (LHC) is a government incentive designed to encourage younger and healthier Australians to take out private cover earlier in life and keep it. If you do not have private hospital cover by the 1st of July after you turn 31, and you then decide to take out hospital cover later in life, you may incur a 2% loading for every year you didn’t’ have cover over the age of 30. This is added to the cost of your insurance and increases each year until it reaches a maximum of 70%!
I’m over 31. What does that mean for me?
It’s important that you understand how LHC works and the implications of not having hospital cover insurance by the 1st of July following your 31st birthday. If you are 31, you only have until June 30 to take out hospital cover and avoid paying a minimum 2% LHC loading. If you miss the deadline – even by just one day – you will have to pay LHC if you take out hospital cover later on. Read more FAQS on LHC here.
Because LHC compounds, the longer you wait to take out private cover, the more it will cost you and could in fact make it simply unaffordable later in life. For example, if you take out hospital cover for the first time at age 35, you’ll need to pay an additional 10% loading on top of your premium (and pay that for another ten years) whereas someone taking out cover for the first time at 65 will pay 70% more for their premiums!
We’re here to help!
LHC can be confusing so it’s well worth speaking to a private health insurance expert who can help explain how LHC works and help you find Private Health Insurance that suits your needs. Call 13 19 20 today.
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