Lifetime Health Cover (LHC) Loading
LHC loading is a 2% penalty added to your health insurance premium for every year you delay taking out hospital cover after turning 31 — up to a maximum of 70%.
Miss the deadline to get private hospital cover and you pay a permanent premium penalty — for the next 10 years. It's one of the most costly and avoidable mistakes in Australian health insurance.
What Is LHC Loading?
Lifetime Health Cover (LHC) is a government policy designed to encourage Australians to take out private hospital insurance early and keep it. If you don't take out hospital cover by your LHC base day — generally 1 July following your 31st birthday — a loading of 2% is added to your hospital premium for every year you were aged over 30 without cover.
This loading stays on your premium for 10 continuous years. It is not a one-off charge — it compounds over time and applies to every premium you pay during that decade.
| Age when you first join | LHC loading | Extra cost on $1,500/yr policy† |
|---|---|---|
| 30 or under | 0% | $0 |
| 35 | 10% | $150/yr |
| 40 | 20% | $300/yr |
| 45 | 30% | $450/yr |
| 50 | 40% | $600/yr |
| 65+ | up to 70% | up to $1,050/yr |
†Example only. Actual premium varies by fund, policy, and age. LHC loading applies on top of your standard premium. Source: privatehealth.gov.au
Your LHC Base Day: The Deadline
Your LHC base day is the day by which you must have hospital cover to avoid any loading. For most Australians, this is 1 July following your 31st birthday.
How much loading do you have?
Tell us your date of birth and our agents calculate your exact LHC position — and show you the best cover to lock in before your loading grows further.
Check my LHC loading →How Loading Is Removed
The good news: LHC loading is not permanent. After 10 continuous years of hospital cover, your loading drops to 0% and never returns — provided you keep your cover.
Important rules around the 10-year clock:
- The 10 years must be continuous (or with approved gaps — see below)
- Switching funds does not reset the clock — your time counts across all funds
- Cover must be at hospital level — extras-only cover does not count
- Once removed, loading never comes back as long as you maintain cover
You can have up to 1,094 days (approximately 3 years) total without cover during your lifetime before incurring additional loading. Approved suspensions with your insurer and overseas periods of 12+ months do not count toward this limit. Source: privatehealth.gov.au
The Youth Discount — The Other Side of LHC
While LHC penalises those who join late, the age-based discount rewards those who join young. Australians aged 18–29 receive a discount on their hospital premiums:
| Age | Discount on hospital premium |
|---|---|
| 18–25 | 10% |
| 26 | 8% |
| 27 | 6% |
| 28 | 4% |
| 29 | 2% |
| 30+ | 0% |