Lifetime Health Cover is a Federal Government initiative designed to reward people for taking out hospital insurance early (by the age of 31) and keeping it so their premiums stay low.
To ensure a person pays the lowest premiums, they need to take out hospital cover with a registered health fund before the 1st July following their 31st birthday and then maintain that cover.
If they decide to join later in life, they will pay a penalty of 2% of their premiums for each 1st July that has occurred between their 31st birthday and the date they join. So someone who joins at age 50 can expect to pay a penalty or Lifetime Health Cover loading of around 40% on their health insurance (hospital cover).
The Lifetime Health Cover loading or penalty remains for 10 years of continuous membership.
Maximum Lifetime Health Cover Loading
The maximum Lifetime Health Cover loading or penalty is 70%. This means people aged 65 and over when they first take out eligible health insurance will pay the maximum loading or penalty of 70%
Exemption for some older Australians
People born on or before 31 July, 1934 are exempt from Lifetime Health Cover and can join a hospital cover at any time and pay the lowest premium. That is, Lifetime Health Cover loadings or penalties do not apply to people born on or before 1 July 1934.
Periods of absence
Under Lifetime Health Cover members are able to drop their health insurance for a cumulative period of 1094 days absence, without paying any additional loading on their premium. If you drop your cover for more than this cumulative period, a Lifetime Health Cover loading or penalty will apply when you rejoin.
Membership suspension and Lifetime Health Cover
Under certain circumstances, you may be able to suspend your health insurance membership for a time, with the agreement of your health fund and not have those suspended periods count towards your ‘Periods of Absence’ (see above). Some health funds may allow you to suspend your membership for overseas travel or periods of financial hardship. Ask you health fund for details of their conditions of suspension or contact us at Health Link.
Health Link can help with your health insurance
You should contact Health Link Consultants if you are over the age of 31 and wish to join a health fund for the first time or have not held continuous health insurance since 1st of July 2000.
Health Link Consultants has access to a huge selection of policies from a range of health funds to ensure we can find the most appropriate and competitive health insurance for your needs.
Simply provide us with details of your health insurance needs using the online form or call us on (03) 9670 5555 or 1800 808 026. We’ll then review your situation and forward a policy recommendation to you. Best of all, Health Link’s health insurance review and personal recommendation service is available to you free of cost and without obligation.
More information about Lifetime Health Cover
For more information about Lifetime Health Cover or any other health insurance related matter, contact Health Link Consultants on 03 9670 5555 or 1800 808 026 – or submit your enquiry online.