Which PHI incentive penalizes people who take out PHI after the age of 30?

• A. Lifetime Health Cover
• B. Private Health Insurance Rebate
• C. Medicare Levy Surcharge
• D. Age-Based Discount

Answer: (A)

Lifetime Health Cover loading is designed to penalize late uptake of private health insurance. If you take out PHI after you turn 30, an extra loading is added to your premiums for each year after 30—typically 2% per year—up to a maximum of 70%. This loading continues for as long as you hold the policy, encouraging people to get PHI earlier. The other options don’t act as a late-entry penalty: the rebate reduces premiums rather than adds a penalty; the Medicare Levy Surcharge is tied to income and whether you have PHI, not when you joined; and there isn’t an age-based discount used here.