How does it work?
HEALTHY AND SINGLE
Bruce, born 1970
From age 31: saves $9120 by not buying hospital insurance for 15 years.
Age 46: gets top cover with no excess before he goes to hospital for heart surgery. Pays 30% LHC loading for the next 10 years.
Age 48: changes to top cover with $500 excess to save on premiums.
Age 56: the LHC loading has cost bruce $7470, making him $1650 better off than if he'd bought insurance at 31.
Cynthia and Kyle, both born 1981
From age 31: save $5105 by not buying hospital insurance for four years.
Age 35: get couples top cover with no excess when Cynthia goes to hospital for her pregnancy. Pay 8% LHC loading for the next 10 years.
Age 37: drop down to budget cover to save on premiums.
Age 45: the LHC loading has cost Cynthia and Kyle $2382 over 10 years, making them $2723 better off than if they'd bought insurance at 31.
Back to main article: How you can pay the LHC loading and still be better off