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.
Once you turn 31, you’ve got until the following 1 July to buy private hospital cover
For every year you delay, you may have to pay an extra 2% for your private hospital cover
As long as you maintain your private hospital cover, you’ll avoid paying any Lifetime health cover loading
The longer you delay, the more it can cost—up to a maximum of 70% loading
Enjoy the benefits of private hospital cover without having to pay extra loading
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!
GET A QUOTEThe Lifetime health cover loading applies if you didn’t have private hospital cover
There are some exceptions, for example if you have recently migrated to Australia or were overseas on 1 July following your 31st birthday. You can call Australian Unity on 13 29 39 or refer to the Private Health website for information about all exclusions and special considerations that apply.
If you and your partner have been without cover for different lengths of time, your Lifetime health cover loading will be calculated by averaging out the two.
For example, if you’re paying a 4% loading, and your partner has a 10% loading, that will be averaged out to 7% on a couple or family policy.
The old fund will provide your new health fund with a transfer certificate. This certificate has information about your previous cover including your Lifetime health cover loading plus details about any waiting periods you’ve already completed, so that these can be applied to your new cover.
That means that your Lifetime health cover loading moves with you.
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.
All of Australian Unity’s private hospital covers can help avoid Lifetime health cover loading. (Note that extras only cover does not exempt you from Lifetime health cover loading.)
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