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Lifetime Health Insurance Cover & Increasing the age of Dependents

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Lifetime Health Insurance Cover & Increasing the age of Dependents

Ready for another dive into the world of health insurance? We’re back with more insights to keep you in the loop.
Today, we’re discussing Lifetime Health Cover and how it intertwines with the updated dependent policies.

Increasing the age of dependents

Increasing the age limit of dependents was a measure from the 2020-2021 budget. Before, it capped out at 24 years old. Now, it’s been bumped all the way up to 31. There’s no age limit at all if there’s a dependent with a disability.

Continuity of care for young Australians

With the ever-rising cost of living, it’s like trying to stay afloat in a sea of bills. But fear not! Thanks to this new policy tweak, you can now keep your kiddos covered for a bit longer. That means a bit more breathing room to save up for their future.

And let’s not forget about those bright-eyed students, burning the midnight oil to earn their degrees. With this new age extension, they can focus on their studies without worrying about health coverage. After all, a little parental support can go a long way, right?

The Lowdown on Lifetime Health Cover:

First things first, let’s talk about Lifetime Health Cover (LHC). It’s like the VIP section of health insurance, but with a twist. This Australian government initiative is all about nudging folks to hop on the health insurance train early and stick around for the long haul.

Here’s the gist: If you don’t snag yourself some Hospital cover with an Australian-registered health fund by the 1st of July after your 31st birthday, things start to get a bit…interesting. You see, for every year you go without Hospital cover after hitting the big 3-1, you could be slugged with an extra 2% on your premiums when you finally do decide to jump aboard.

Let’s break it down with an example: Say you go a decade without health cover. That’s a whopping 20% extra tacked onto your hospital premium when you eventually sign up. And just when you thought it couldn’t get any spicier, there’s a maximum loading cap of 70%. Yikes!

The Dependent Dilemma:

Now, let’s circle back to those dependent policies we touched on earlier. Remember how the age limit got a facelift, letting kids hang around on their parents’ policy until they hit 31 (or indefinitely if there’s a disability )? Well, turns out, there’s more to it than meets the eye.

By keeping your offspring covered under your wing, you’re not just extending a safety net—you’re also dodging the LHC bullet. Yup, that’s right! Staying on your parents’ policy could be the golden ticket to avoiding those pesky premium hikes down the line. Talk about a win-win!

Putting It All Together:

So, what’s the big takeaway here? Well, for starters, it pays to plan ahead. Whether you’re a fresh-faced youngster or a seasoned insurance aficionado, staying in the know is key. By locking in your health cover early and keeping those dependents close, you’re not just safeguarding your health—you’re also sidestepping potential financial headaches down the road. Whether you’re pondering your own insurance journey or guiding your loved ones through the maze of options, one thing’s for sure: knowledge is power!


Before acting on any General Advice, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs. If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) for that product before making any decisions.

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