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.
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.
So it makes good sense to get your private hospital cover sorted out before any Lifetime Health Cover loading kicks in!GET A QUOTE
To cover small gaps in private hospital cover, such as switching from one fund to another, you are able to be without private hospital cover for up to 1094 days (one day less than three years) during your lifetime, without affecting your loading.
If your health fund agrees to suspend your private hospital cover for a short period (for example, while you go on an overseas vacation), your Lifetime Health Cover loading is not affected and the suspension period isn’t counted towards your 1094 days of absence.
If you’re moving overseas for a continuous period of 1 year or more, you can cancel your private hospital cover without affecting your Lifetime Health Cover loading. You can even come back to visit Australia for a period of less than 90 days without it affecting your loading.