June 20, 2014
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%.
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!
For all your home loan needs contact Mortgage Choice Springwood today on (07) 3808 1070 or visit our website www.mortgagechoice.com.au/logan2