Understanding Your Real Healthcare Needs
The biggest mistake Kiwis make is buying the cheapest plan without knowing what they actually need. Health insurance is personal — what works for a 30-year-old builder is completely different from what a 55-year-old office worker needs.
Start by asking yourself: What healthcare do I actually use? Do you see a dentist regularly? Do you need ongoing physiotherapy for an old injury? Are you likely to need specialist consultations? These patterns should shape your plan choice, not a generic price comparison.
Major Medical vs Surgical: Which Tiers Matter
Most insurers offer multiple tiers. The big decision is between major medical cover (specialist consultations, diagnostic tests, private hospital admission) and surgical-only cover (just the operating theatre and hospital stay).
Surgical cover is cheaper but leaves you paying out of pocket for the years of specialist appointments that lead to surgery. If you have a chronic condition like arthritis or heart issues, major medical cover saves you thousands in specialist consultation fees alone.
If you're healthy and just want catastrophic cover, surgical-only might actually be sensible.
The Excess Strategy That Actually Works
Your excess is the most underrated lever for cutting premiums. A $1,000 excess can cut your premium by 30-40% compared to a $250 excess. But it only makes sense if you have savings to cover it.
Calculate: if you save $50 per month with a higher excess, you hit that excess amount in 20 months. So higher excesses only work if you genuinely won't need to claim within 2-3 years.
Comparing the Real Numbers
Don't just look at premium price. Get quotes for the exact same cover from each insurer — same excess, same major/surgical split, same add-ons.
We do not publish premium comparisons between insurers, and we would be sceptical of any site that does. No New Zealand health insurer publishes a full premium schedule, so no site can build a like-for-like table. Two of the five — nib and UniMed — publish a starting price for one particular plan, each on its own stated basis, and those two figures are not comparable with each other. Any broader per-insurer table has to come from somewhere else, and it is almost never comparing the same plan, the same excess and the same person. AIA does publish the mechanics of its Vitality premium discount in full, which is unusual and worth reading if you are considering them — it starts at 10% and then moves up or down each year with your engagement.
Add-Ons: What's Worth Buying
Most insurers offer optional add-ons such as dental, vision and mental health. Several insurers cover mental health consultations in some form — UniMed includes it across a number of its plans, and nib's plans cover consultations with a psychiatrist or psychologist subject to a stated limit and waiting period — so check the benefit maximum rather than assuming it is unavailable.
Dental and vision add-ons are rarely good value — you're typically better off budgeting separately for these. Maternity cover is worth considering if you're planning children within 3-5 years (waiting period applies). Critical illness add-ons are useful if you're the sole income earner.
Making Your Final Decision
Get three quotes for exactly the same cover — same plan level, same excess, same people — and compare the pre-existing condition definition, the non-Pharmac drug limit and the annual maximums alongside the price. A cheaper premium on a narrower wording is not a saving.
The best health insurance is the one that fits your actual needs and budget — not the most expensive or the most advertised.