Choosing the right health insurance provider can make a world of difference to your peace of mind and well-being. In New Zealand, where public healthcare is sometimes hit or miss, selecting the best private health insurer is crucial.

In this blog, we'll explore the top five health insurance providers in New Zealand, highlighting their key features, coverage options, customer satisfaction ratings, and affordability. Whether you're looking for comprehensive coverage, excellent customer service, or competitive premiums, this guide will help you make an informed decision for your healthcare needs.

The NZ Healthcare System Explained:

In New Zealand there are two types of healthcare available: Publicly funded & Privately funded. NZ Citizens, permanent residents & some others are eligible for publicly funded healthcare.

The Public Health System in New Zealand has had mixed reviews over the last 20 years, with the last few years showing particular weakness in several areas. If your need for treatment is acute (urgent), you are generally best off in the public system (i.e. hospital emergency room). However, if your need is not considered to be acute, then the public system can either put you on a lengthy wait-list for treatment (sometimes lasting several years) or in some cases not offer treatment at all.

Privately funded healthcare gives you faster access to a much wider range of treatments and healthcare providers. The only issue is that procedures in the private system generally cost a lot. That’s where Private Health Insurance comes in. Private Health Insurance pays for your private healthcare costs.

The 3 Levels of Healthcare in NZ:

Hospitalisation - The most expensive/serious level, with some hospital treatments such as heart, spine or cancer related surgeries costing well over $100,000. It is very important to cover these potential costs.

Specialists & Tests - This level includes specialist appointments and any scans/tests such as X-rays, MRI’s, CT scans, Ultrasounds etc. These are quite common and can cost several thousand dollars each. Often your GP (doctor) will send you for these diagnostic scans when they need more information on a particular health concern.

Day-to-day - The final level of healthcare is day-to-day prescriptions and GP visits. These costs are cheap to pay for yourself but usually relatively expensive to insure. In most cases we find people will pay more for this type of insurance than they actually claim back in reimbursements. Often insurers that offer this type of cover will place strict limits on how much you can claim per year for day-to-day costs as well.

Which Levels should I get Insurance for?

There are insurance policies to cover all 3 levels, however we generally recommend insurance to cover just private ‘Hospitalisation’ and ‘Specialists & Tests’ as these are the procedures that would likely be too expensive for people to pay for themselves. Self-funding the smaller day-to-day expenses is usually best, however this depends on the individual.

If budget is a significant issue, then just Hospitalisation cover with a $1,000 excess is a great option.

“Elan’s guidance around my health insurance saved me money and enhanced my coverage.” - Vess Rusev

The Results:

1. Partners Life

2. AIA

3. NIB

4. Southern Cross

5. UniMed

6. *Accuro (no longer available)

1. Partners Life

Company Background:

Partners Life is a prominent New Zealand insurance company that began in 2011 and specializes in providing comprehensive insurance solutions to individuals and businesses. Established with a customer-centric approach, Partners Life has gained a strong reputation within the industry for its commitment to excellence and innovative product offerings. With a focus on transparency, efficiency, and advanced technology, the company ensures prompt and reliable claims settlements along with constantly improving products. Partners Life's dedication to social responsibility is evident through its active involvement in community initiatives and support for charitable causes, making a positive impact on the lives of New Zealanders.

Pros:

• $600,000/year/person Surgical Benefit.

• $500,000/year/person Non-surgical Benefit.

• Market-leading funding for non-PHARMAC subsidised drugs built into the above annual limits (i.e. $500,000/year or $600,000/year depending on the treatment type). Most other insurers charge extra for non-PHARMAC cover.

• Your choice of excess ($0, $250, $500, $1000, $2000, $5000, $10000) to help manage price.

• Major Diagnostic Benefit (pays for tests/scans such as MRIs, PETs, Echocardiography, Colonoscopies, Endoscopies etc.).

• Cancer Care & Support Benefits.

• Overseas Treatment Benefit - Full coverage in Australia and up to $60,000/year covered outside Australasia if recommended treatment is not available in NZ or Australia. Conditions apply.

• Automatic free coverage for babies in first 6 months after birth.

• Very competitive flat rate for children under 21.

• Optional Standalone Specialist & Test Coverage, including alternative health practitioners such as chiropractors, naturopaths, homeopaths etc. ($10,000/year limit).

• Life, Trauma & Disability insurance available as well.

• Competitive pricing.

• Loyalty discount helps limit premium increases (up to 10%).

Cons:

• No ‘Day-to-Day’ coverage.

• Standalone Specialists & Tests fixed $250 excess.

Summary:

Partners Life has an incredibly solid health insurance policy. It has very generous annual limits and few exclusions in terms of ‘Hospitalisation’ and is well priced, especially given the policy strength. It allows the option to add ‘Standalone Specialists & Tests coverage’ to really make the policy comprehensive. Funding for cancer treatment is also market-leading and the policy by default includes significant coverage for non-PHARMAC funded drugs.

We have also found the Partners Life to be incredibly helpful, compassionate and understanding for health insurance claims. Partners Life also offer other types of personal insurance such as Life, Trauma & Disability which gives you the opportunity to combine all your personal insurance through the one insurer (this saves on paying multiple policy fees).

Partners Life is our top pick for Health Insurance in NZ for 2024.

Providing Kiwis with expert Health Insurance advice for 30+ years.

2. AIA

Company Background:

AIA is a leading insurance company with a rich history and a strong presence in the Asian & Pacific market. Founded in 1919, AIA has grown into one of the largest insurers in the region, serving millions of customers across 18 markets. The company offers a wide range of insurance products, including life, health, and retirement solutions. With a focus on customer-centricity, innovation, and long-term sustainability, AIA is committed to helping individuals and families live healthier, longer, and better lives. AIA's success is driven by its strong financial performance and extensive distribution network.

Pros:

• Unlimited Surgical Benefit.

• $500,000/year/person Non-surgical Benefit.

• Funding for non-PHARMAC subsidised drugs built into the above non-surgical limit. Most other insurers charge extra for non-PHARMAC cover.

• Your choice of excess ($0, $250, $500, $1000, $2000, $4000) to help manage price.

• Major Diagnostic Benefit (pays for tests/scans such as MRIs, PETs, Echocardiography, Colonoscopies, Endoscopies etc.).

• Cancer Care & Support Benefits.

• Overseas Treatment Benefit - Full coverage in Australia and up to $30,000/year covered outside Australasia if recommended treatment is not available in NZ or Australia. Conditions apply. .

• Optional Standalone Specialist & Test Coverage (called: Private Health Plus) - $10,000/year limit.

• Life, Trauma & Disability insurance available as well.

• Optional AIA Vitality Membership which rewards you for living a health/fitness oriented life.

Cons:

• No ‘Day-to-Day’ coverage.

• Complicated systems/processes for policy alterations.

Summary:

AIA offers a comprehensive health insurance policy that will protect you very well if a serious health condition decides to appear. Their policy includes strong built-in benefits such as coverage for some non-PHARMAC funded treatments & also an overseas treatment allowance.

For clients above age 40, the optional AIA Vitality membership can potentially reduce the overall cost for your health insurance (even after the $11.50/month Vitality membership cost has been taken into account). AIA also offer a full range of life, critical conditions (trauma) & monthly disability covers which can be added under the same policy.

AIA is a strong choice for anyone looking for health insurance in NZ.

3. NIB

Company Background:

NIB is a leading health insurance provider based in Australia and New Zealand. Established in 1952, NIB has grown into one of the largest health insurers in the region, serving over 1.7 million customers. The company offers a comprehensive range of health insurance plans, along with basic life insurance coverage that can be added to any of their health insurance policies. NIB is committed to providing affordable and accessible healthcare solutions, with a focus on customer satisfaction and innovative digital services.

Pros:

• Can add day-to-day coverage (covers 60-80% of your GP costs + some dental/vision costs).

• $300,000/year/person Surgical Benefit.

• $200,000/year/person Non-surgical Benefit.

• Your choice of excess ($0, $250, $500, $1000, $2000) to help manage price.

• Some cancer care & support benefits.

• Optional standalone specialist & test coverage with NIB’s Premium Hospital Plan.

• Life insurance available as well.

• Some pre-existing conditions covered after 3 years (strictly excludes cancer, cardiovascular & serious musculoskeletal issues).

Cons:

• $20,000/year inbuilt non-PHARMAC funded drug coverage. Have to pay extra for higher amounts (max $300,000/year).

• No overseas treatment benefit.

• Generally expensive.

Summary:

NIB is a strong health insurer that can provider coverage for a wide range of NZ private healthcare services, including day-to-day coverage (for an additional cost). NIB are widely trusted throughout NZ and even cover treatment for some pre-existing conditions.

Beyond this, NIB are generally more expensive that other health insurers in NZ and have very limited built-in coverage for non-Pharmac funded treatments and have lower surgical & non-surgical allowances than some other policies.

If you are set on including day-to-day coverage (such as GP & dentist visits) then NIB is probably your best option. Outside of this, other policies will provide more comprehensive protection against the serious conditions and probably at a more affordable price.

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4. Southern Cross

Company Background:

Southern Cross Health Society is a prominent health insurer in New Zealand, offering a wide range of health insurance plans for individuals, families, and businesses. They prioritize affordable access to healthcare services, including specialist consultations, surgeries, and medical treatments. Southern Cross also emphasizes preventative healthcare measures, promoting wellness and early intervention. With a focus on customer-centric services and a network of healthcare providers, Southern Cross aims to improve health outcomes and ensure peace of mind for its members regarding their medical needs.

Pros:

• Multiple different policies & optional ‘modules’ to suit your needs & budget (Wellbeing 1, Wellbeing 2, Ultracare, Kiwicare/Regular Care). Broad summary of the policies below, starting from least comprehensive/cheapest:

• Kiwicare - 80% coverage for hospitalisation

• Regular Care - 80% coverage for hospitalisation & day-to-day

• Wellbeing 1 - hospitalisation

• Wellbeing 2 - hospitalisation with specialists/tests

• Ultracare - hostpitalisation with specialists/tests & day-to-day

• Good online customer portal for claims & policy alterations

• Your choice of excess ($0, $500, $1000, $2000, $4000) to help manage price.

Cons:

• Non-guaranteed policy wordings

• Have to pay extra for extended cancer care benefits and non-Pharmac funded drugs

• Can generally only use Southern Cross affiliated healthcare providers

Summary:

Southern Cross is a very well established healthcare provider with over 900,000 members in NZ. They are the main choice for employers looking to provide their employees with group health insurance benefits and as such Southern Cross has become wide spread.

The main benefit of Southern Cross is their large range of policy options and modules. The main downside would be the non-guaranteed policy wordings which allows Southern Cross to remove benefits from their policies in the future should they see fit.

Southern Cross are a common option for health insurance in NZ, however for most people there will be better options out there with guaranteed policy wordings.

5. UniMed

Company Background:

UniMed is a basic health insurer in New Zealand, providing broad health insurance solutions to individuals and families. Their plans cover a range of medical services, including consultations, surgeries, and treatments, with a focus on affordability and accessibility. UniMed emphasizes member satisfaction, offering personalized support and a network of healthcare providers for quality care. As of 2024 UniMed is also acquiring all current Accuro Health insurance members.

Pros:

• Affordability

• Several different policies including both hospitalisation and day-to-day

Cons:

• Many exclusions and procedures which are not covered.

• The procedures that are covered usually have very low allowances/limits which could result in you having to pick up a hefty bill after a surgery is complete.

Summary:

UniMed provides very basic coverage at a relatively cheap price. Generally we find UniMed is about 10-20% cheaper than the next cheapest option (often this can equate to just a few dollars/wk). Whilst this saving could be crucial for some families, having comprehensive cover that won’t leave you with a massive bill should also be crucial.

If price is a massive concern, we would first recommend looking at some of the other insurers, such as Partners Life or AIA and using a larger excess with one of their policies before considering UniMed.

Why have Private Health Insurance?

As you can see, many of these procedures/treatments would be too expensive for someone to pay themselves. This is why health insurance is so important. Instead of you having to pay the above amounts, the insurer will pay, therefore allowing you access to treatments that perhaps were too financially prohibitive before to access.

This can be a massive factor in determining whether you get the treatment you need to help improve the quality of life for yourself and family. We have all seen the stories of someone being diagnosed with a serious illness and their family having to start a ‘GoFundMe’ page to help pay for the treatment. We want to avoid this!

What Excess should I choose?

Now that we have covered which insurers are best, along with which options/add-ons are best to go with, the final step is to select an excess.

What is an excess?

An excess is the amount you pay for a claim, before the insurance company pays the rest. If you select a higher excess, your premiums will be cheaper.

With most insurers, your excess is only payable once per year. This means if you claim multiple times in one year (which can often be the case when ambiguous health issues arise and you are sent for many tests) you will only pay the full excess once.

What excess should I choose?

We generally recommend a higher excess for Hospitalisation ($500 or $1,000) to save money because you most likely won’t claim on this frequently. Using a smaller excess for Specialists & Tests ($0 or $250) is generally preferable as claims can be common.

Discuss your excess with your broker to figure out which is best for you.

Are Pre-existing Conditions Covered?

No. This is why it is smart to get health insurance when you are healthy, before health issues arise.

However, if you have pre-existing conditions please feel free to get in touch and we can see if we can assist in any way. Sometimes a broker can help paint a more ‘complete picture’ to an insurer which may result in a better underwriting outcome for you!

Should I use a Broker?

Yes. Whilst we may be a bit biased being brokers ourselves, here are the facts:

• Using a broker is free, nor does it increase the cost of the insurance.

• We are independent and can write business with whichever insurer will provide the best cover for your specific situation.

• We are experts and know the pro’s/con’s of most of the policies out there. This will save you time having to read through policy wordings yourself.

• Brokers will generally spend more time explaining things to you and listening to your needs.

• We will help you through any future claims and be your personalised assistant for any insurance queries you have in the future. No more waiting to get through to a mystery person on an 0800 number.

• Having an industry expert who is ‘on your side’ during a claim can improve your claim outcome and remove a lot of stress off you.

Conclusion:

In New Zealand, private health insurance should be an important part of everyone’s financial and health plans. Whilst our public healthcare system is advanced in some areas, it is severely lacking in others. Having private health insurance for you and your family ensures you have paid access to the best healthcare options available and can greatly increase your quality of life should an unforseen health issue eventuate.

Private health insurance doesn’t have to cost much either. Combining a policy from a competitively priced insurer with a reasonable level of excess (e.g. $500 or $1,000) can make things truly affordable.

When selecting a health insurer, price shouldn’t be the only concern however. A balance must be struck up between price and policy strength. At Elan, we have found Partners Life to consistently excel in both aspects and provide great long-term service during claims and ongoing protection.

Other insurers such as AIA & NIB also provide comprehensive policies at usually competitive pricing.

Tailored insurance solutions from the friendly experts…

I am a qualified & independent Insurance Broker that works with my clients to get the covers they need whilst being mindful of their budgets & goals.

I specialize in Life, Health and Disability Insurance for Kiwi’s, along with insurance for business owners.

I can help people who:

• Want to get insurance in place but don’t know where to start.

• Want their current insurance reviewed.

Oliver Pykett
Independent Insurance Broker