The Lifetime health cover loading was introduced by the Australian Government in July 2000 to encourage people to take out private hospital insurance at a younger age and maintain it over time.

How does Lifetime health cover loading work?

Once you turn 31, you’ve got until the following 1 July to buy private hospital cover and avoid paying the loading.

For every year you delay, you may have to pay an additional 2% (up to a maximum of 70%) on top of the cost of your private hospital cover. The good news is that the loading doesn’t last a lifetime. Once you have held private hospital cover for 10 continuous years, the loading will be removed.

For example, if your private hospital cover costs $1000 per year

Buy cover at age 31 Wait until you turn 50 0% Lifetime health cover loading Once you turn 31, you’ve got until the following 1 July to buy private hospital cover Up to 40% Lifetime health cover loading For every year you delay, you may have to pay an extra 2% for your private hospital cover $0 extra Lifetime health cover loading a year As long as you maintain your private hospital cover, you’ll avoid paying any Lifetime health cover loading About $400 extra Lifetime health cover loading a year The longer you delay, the more it can cost—up to a maximum of 70% loading $0 extra Lifetime health cover loading over 10 years Enjoy the benefits of private hospital cover without having to pay extra loading About $4000 over 10 years You can get the same level of cover, it can just cost you more for the first 10 years

So it makes good sense to get your private hospital cover sorted out before any Lifetime Health Cover loading kicks in!

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