Lifetime Health Cover

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).

For details of their conditions of suspension call the Plan advisors, Health Link Consultants on ph. 1800 808 026.

Need help?

If you are unsure which cover best suits your needs, call us on 03 9670 5555 or Freecall 1800 808 026 to discuss your situation... or if you prefer, complete and submit a request for a free recommendation. We’ll then review your situation and forward a personal recommendation and quote to you by post or email. Best of all, this service is available to you free of cost and without obligation.