Private Health Insurance - why is the 1 July deadline so important?

June 20, 2014
Joanne Croft

Lifetime Health Cover (LHC):  LHC is a loading the Federal Government put in place to encourage people to take out private hospital cover earlier in life.

 

How it works....

 

It works like this: once you turn 31, you need to have hospital cover before July 1 to avoid paying an additional 2% loading on top of your premium. If you don’t get cover until after your 31st birthday, an additional 2% loading will be applied for every year you are uninsured. The maximum loading is 70%.

 

Example


If you take out hospital cover at 35 years old, you'll incur LHC loading of 10% on top of your premium. Take it out at 40, and your LHC loading will be 20%. I don't know about you but I'm pretty sure I don't want to be paying this additional loading!

 

Once you have paid a LHC loading on your private hospital insurance for 10 continuous years, the loading is removed as long as you retain your hospital cover.


Defintely worth looking at! 


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