The Lifetime Health Cover initiative is a way of encouraging young Australians to take up private healthcare. Fundamentally, if you take out private healthcare at a young age you benefit more as you get older.

If you don’t take out Private Hospital Cover by your 31st birthday, you will be forced to pay a 2% loading for every year you are aged over 30.

If you’re privately insured before June 30 of the year you turn 31 you will be on the lowest premium rate for life. If, for example, 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%. 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.

Note: The Lifetime Health Cover component of a premium is not eligible for the Rebate.

You can find more detailed information about Lifetime Health Cover on the Australian Government’s Private Health Insurance Ombudsman website.