A whole life of great health
Lifetime Health Cover (or LHC) is a government initiative that encourages Australians to invest in Hospital cover earlier – by paying a lower premium than if you’d taken out the cover later in life.
You’ll avoid the annual 2% LHC loading on your insurance premiums if you take out Hospital cover before July 1st in the year after your 30th birthday.
What happens if you wait until later?
You’ll lock in the loading percentage for your certified age at entry (CAE). So if you decided to take out hospital when you were 50, you’d need to pay an additional 40% LHC loading (20 years x 2%) on top of your yearly insurance premium. The loading will be removed once you’ve had ten years of continuous Hospital cover.
Taking a break without affecting your CAE
You can go without Hospital cover for 1,094 days (one day short of three years) during your lifetime without affecting your CAE. Any short suspensions that your Fund agrees to don’t count – neither does spending at least one full year overseas. You can even come back to Australia for up to 90 days straight without the count starting up again.