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How iSelect Helps Australians Choose the Most Affordable Private Health Insurance Policy

Health insurance

A recent survey conducted by the consumer group Choice revealed that over 75% of the Australian population is struggling to afford private health insurance coverage. Steep premiums rank second only to electricity amongst Australians’ cost of living concerns. However, the good news is that iSelect can save Australians money by helping them to choose the most affordable private health insurance policy.


According to The Guardian, the federal government introduced reforms to the Australian Parliament in March of 2018 in an effort to alleviate the private health insurance system crisis. These reforms would include hospital coverage discounts for people under 30. The legislation would allow private health insurance providers to increase customer excesses in exchange for lowering premiums. The last time private health insurance premiums were lowered was in 2001. The cost of private health insurance is expected to rise in April for Australians. Statistics reveal private health insurance owners to be at an all time low in Australia.

About iSelect

iSelect is a free, personalized service that assists Australians in weighing the pros and cons of all insurance, utility, and personal finance decisions by offering comparison and expert advice. iSelect is an independent company that operates on commissions so there is no financial obligation to users. According to recent research commissioned by iSelect in 2017, 68% of Australians without private health insurance coverage aren’t even aware of LHC. Over a third of Australians that possess a private health insurance policy aren’t aware of LHC and 28% don’t know whether or not they are paying LHC on their policy! There is indeed a need for transparency in the private health insurance coverage business. LHC can cost Australians over the age of 31 upwards of 70% in incurred penalties. iSelect is a service that will help you navigate the murky waters of private health insurance coverage to your best interest so that you can make the right decision in choosing the most cost-effective policy.

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What is LHC?

Lifetime Health Cover Loading (LHC) is an initiative introduced by the Australian government in July of 2000. LHC is designed to ease the pressure on the public system by encouraging people to take out private hospital cover. Unless purchased early in life and maintained over time, penalties will be incurred by all Australians past the July of their 31st year. According to iSelect:

“Australians who don’t take out private hospital cover before the 1st of July following their 31st birthday generally face paying an annual 2% financial loading. This is in addition to the base rate premium for private hospital cover. For example, if you wait until you’re 35 to take out private hospital cover, you could pay an extra 10% on top of your premium. If you wait until you’re 40, you could face paying up to 20% more, if you wait until you’re 45, you could face paying an additional 30% on top of your premium and if you wait until you’re 50, you could pay an additional 40%. If you take out hospital cover before the 1st of July following your 31st birthday, you won’t have to pay LHC as long as you continue to hold eligible cover. Otherwise, in most circumstances, it’s unavoidable and will increase by 2% every year until you purchase it. The maximum loading is 70%.”


Whether you want to avoid LHC penalties or reduce the LHC strain on your wallet with a better value policy, iSelect’s team can help you! With the cost of private health insurance coverage at an all time high, you deserve a choice in determining what the best policy is for you! To learn more about iSelect’s services and LHC in Australia, please click here. iSelect has you and your wallet’s best interests at heart!