Lifetime health Cover (LHC loading) is a great initiative that was started by Australian Government on 1st July 2000. It was introduced and designed to encourage people to take out hospital insurance early in life. It intends to support the insurance takers to maintain their policy overtime, and help them avoid the penalty.
Therefore, it is very important to know about lifetime health cover. If a person plans to purchase hospital cover in the early years of his/her life, and keep it, he/she will not have to pay an extra amount for what is known as ‘LHC loading’.
What does Lifetime Health Cover (LHC) Loading means?
It is very important for many of you to understand the proper meaning of LHC loading. It applies to a person who does not take out private health insurance without a hospital cover. Lifetime Health Cover is a great initiative designed to encourage young people to take health insurance. By doing this, they can help to reduce the burden on the public health system. LHC loading applies a 2 percent increase in the premium per year for each year after a person’s 30th birthday, if you fail to take out private health insurance.
You all must understand that the premiums for health insurance are not cheap. Therefore, to start with, you can make them less expensive-even if it is by only 2%. It can be a superb move for your finances.
How much does a lifetime health cover cost?
The cost you will be paying, if you incur Lifetime Health Cover loading, will totally depend on the original price of your health insurance policy. Along with this, it even depends on the age at which you eventually got around applying for a particular health insurance policy.
Some exceptions which apply to the LHC rule:
These are some considerations for special circumstances like:
A period of 1094 days of leeway can be provided over your lifetime to allow for:
- A policy which is being moved from one provider to another.
- Any cancellation of a policy, in case you are moving overseas, but it should be for one continuous year.
- Members of Australian Defense Forces as well as veterans are exempt.
Here is the reason why you all should have health insurance:
There are many benefits of taking the health cover; hospital cover is available for you so that you can be treated quickly for injuries or illnesses, not deemed a serious kind of emergency. It includes some elective surgeries like C-section or knee reconstruction. An extra cover is available to assist you cover the price of health care and medical help, which includes a trip to the dentist, glasses (optical), physiotherapy, and many more.
iSelect offers great policies and special offers. You can avail these offers from iSelect’s website and contact centre. There are several providers offering some of the best Lifetime Health Cover plans as per your requirements. You can even compare several health policies on their website and find the lifetime health cover.