How is Lifetime Health Cover calculated?

• A. An Extra 2% For Every Year After 30 On Premiums For The Next 10 Years
• B. A One-Time Surcharge At Age 31
• C. A Decrease In Premiums After 40
• D. No Impact On Premiums

Answer: (A)

Lifetime Health Cover loading is designed to encourage people to take out private hospital cover earlier. It adds a 2% loading to your private health insurance premium for every year after you turn 30 that you do not have private hospital cover when you first take out the cover. This extra amount stays with your premium for the next 10 years after you first obtain the cover, so the longer you wait, the higher the loading you’ll see on your premiums during that period. For example, if you take out cover at 33, you’d face a 6% additional loading on your premiums for the following 10 years. This is why the correct choice describes an extra 2% per year after 30 for the next 10 years.