Lifetime Health Cover

The Lifetime Health Cover initiative is a way of encouraging young Australians to take up Private Healthcare. Fundamentally, if you join Private Healthcare at a young age you benefit more as the years go by. And if you don’t take out Private Hospital Cover by your 31st birthday, you pay a 2% loading for every year you are aged over 30.

Think of the Lifetime Health Cover system as a way of spreading the load between the young and healthy and older Australians.

Under Lifetime Health Cover, people who take out private hospital cover before they turn 31 years old pay less for it than people who wait until they are older. That is only fair. Otherwise they would end up subsidising people who join at a later age.

So, if you are around 30 years old, and you do not have private health insurance hospital cover, you should seriously consider taking it out now. Because after 1st July following your 31st birthday, you will pay 2% more for every year you wait.

You can save money on health insurance if you take it out sooner rather than later!

If you’re privately insured before June 30 of the year you turn 31 you will be on the lowest premium rate for life. From the age of 30 you will have to pay an extra 2% for every year you remain uninsured – so if you wait until you’re 40 to take out private health insurance you’ll pay an extra 20% and if you wait until you’re 45 you’ll pay an extra 30%.

Lifetime Health Cover (LHC)

LHC applies to everyone born after 1 July 1934 and it sets your premium rating for life when you first take out private health insurance hospital cover. If you do not have hospital cover on the 1st of July following your 31st birthday and then decide to take out hospital cover later in life, you will pay a 2% loading on top of your premium for every year you are aged over 30.

For example, if you take out hospital cover at age 40 you will pay 20% more than someone who first took out hospital cover at age 30. The maximum loading is 70%.

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.

That’s a fair reward for those members who have shown a long term commitment to the private health system!

Lifetime Health Cover…


  • Kay L B
    15 April 2013

    My family (& extended family) have had top hospital & extras cover for as long as i can remember (i am 71).Whilst i should not fall into the trap of comparison between the mid 60′s & now for obvious reasons i.e due to inflation, COL increase, wage variation,population increase, lack by consecutive governments to build more hospitals & increase incentive to attract more doctors, nurses etc,but when i started work at 18.i was just on a ‘receptionst’s’
    wage but i started paying my own insurance. It was considered the normal thing to do. 99% of our population had private insurance.
    It was what one called ‘paying your own way’or ‘not bludging on taxpayers’. As i said governments of all persuasions MUST share the blame in some capacity for the sad state of our public system & the cost of going private. BUT Labor governments in my opinion have to bear the lions share for reasons too numerous to go into here.As a great lady said.. “The problem with socialism is that you eventually run out of other people’s money”..doing just that is why this present SOCIALIST Labor government has recklessly neglected THE most important thing to every human being…humane & affordable health care.

    25 March 2013

    This is such a crock. I am struggling to pay my private health insurance which has just gone up AGAIN. I pay $2,500 per year and have rarely needed it. I cannot believe this government, how about you focus on improving childcare so more of us can get back to work and not work to pay for childcare. So sick of this government taking from the people.

  • Debbie Hogenkamp
    21 June 2012

    More crap for the working people. Doesnt the government even care about people? I am a nurse, single mum and working to keep my family fed. IF I ever visit the doctor its because something is wrong. I use my skills to nurse others and educate them how to stay healthly and avoid doctors or hospitals, my family and friends dont visit often because we try not to tie up the system. Now you are penalising us!? Isnt there another way? Oh wait you are with flood tax, water tax and anything else to line your pockets. Must be voting time cos I know what I’ll be doing. Very annoyed and angry nurse, Debbie.