Lifetime Health Cover
Lifetime Health Cover (LHC) is a Federal Government initiative that encourages people to join private health insurance earlier in life.
Under LHC, if you join any hospital cover after 1 July following your 31st birthday, you will have to pay a 2% loading on top of the normal premium rates for each year you waited before taking out private health cover. Not just with nib, but with any health fund. For example, if you wait until you’re 40 you will pay 20% more than someone on the same cover who joined before they were 31.
All hospital covers offered by nib meet LHC requirements. LHC does not apply to Extras cover. If you were born before 1 July 1934, LHC doesn’t apply to your health cover.
LHC allows for changes in your circumstances, and lets you drop your hospital cover for a cumulative total of 1094 days in your lifetime. After 1094 days absence from hospital cover, a 2% loading will be added to your premiums for every 365 days you don’t have it. If you suspend your cover at any time, this period will not be deducted from the 1094 days.
Lifetime Health Cover 10 year removal
What happens once I have my LHC loading for 10 consecutive years?
If you have reached your 10 year LHC anniversary, you will automatically have your LHC loading removed from your policy. This change will result in your health cover premium amount being reduced.
When does this change come into effect?
These changes will come into effect at nib from Saturday 3 July, 2010.
Do I have to do anything to qualify for this premium removal?
nib will contact you once the 10 year mark is reached on your policy. A letter will be sent to the nib policyholder confirming the new premium amount on their anniversary date. Any other individuals on the policy who are eligible for this removal will also be contacted at this time. If you don’t hear from us, and feel you are eligible for this premium reduction, please give us a call on 13 14 63.
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