How to avoid the Lifetime Community Rating

If you are turning 35 soon, and you currently don’t have health insurance, you need to put it at the top of your priority list to avoid the Lifetime Community Rating.

If you don’t take out health insurance before you turn 35, you will have to pay more for your health cover.

In 2015 the Irish government introduced the Lifetime Community Rating loadings, known as the LCR.

The loading applies to everyone 35 and over who takes out health insurance for the first time.

It is charged at a rate of 2% of the cover premium for every year over 34, and maxes out at 70%.

So, to put this in context, if you take out health insurance when you turn 36, you will pay an extra 4% loading on top of your premium.

If you wait until you are 45, you will pay an additional 12% on top your premium.

Avoiding the Lifetime Community Rating can save you hundreds each year, and thousands over the lifetime cost of your health cover, so it really is important to look at your health insurance options before you turn 35.

If you are 35 or more and previously had health insurance, you may be eligible to offset the amount of time you held the insurance against any loading that now might apply.

For example, if you previously held health insurance for five, the LCR loading that applies to your cover may be reduced.

If your income has been affected by the COVID-19 pandemic and you have let your health insurance lapse, please talk to us at Hennelly Finance because your Lifetime Community Rating loading might be eligible for waiver or reduction depending on your circumstances.

Similarly, if you have been overseas and are returning to Ireland, you may also be eligible for a waiver or reduction of your Lifetime Community Rating loading, so please pick up the phone and talk to us about your options.

To find out more about the LCR, how it affects you, and for specialist advice about your situation, please give us a call or visit our website at hennellyfinance.ie .