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In the Financial Services Council (FSC) NZ’s 2025 Money and You: Valuing Belongings Over Ourselves report, it found that New Zealanders are twice as likely to have car insurance than they are to have life or health insurance.

We’re protecting our possessions. Just not ourselves.

Perhaps, as the report suggests, it’s because the benefits of health and life insurance are intangible, whilst we all know the pain of a smashed phone or a broken down car. Or it could be that with the vast majority of health insurance being paid for by individuals rather than employers it’s something that isn’t financially feasible.

However, at The Finance Hub, our insurance specialists are here to find you the right policy to suit your budget and medical requirements, because we think having health insurance is worth it.

What Does Health Insurance Cover?

This depends on the level of cover your plan includes. Some will cover the basic day-to-day healthcare services such as GP and nurse services, dental and optometry. Other more premium plans include cancer treatment, mental health consultations, surgery including bariatric surgery and medication not funded by Pharmac.

Why Having Health Insurance Matters

Access to Private Healthcare Services Not Readily Available Publicly

In the FSC’s 2025 report this was cited as the number one reason that those surveyed took out private health or medical insurance. Depending on your plan you could have rapid access to diagnostic imaging such as MRIs, access to private hospital rooms and care providers.

Reduce Financial Burden

Whilst you do have to pay a monthly or annual plan fee and the excess if you make a claim, having private health insurance means that if you did require a treatment that wasn’t covered by public health care or you wanted to be seen more quickly, you can do so whilst avoiding the need to eat into your personal savings or risking debt with a high-interest loan to cover the cost.

Avoiding Long Wait Times

A primary reason for having private health insurance is to avoid long wait times for elective surgeries or consultations. Patients in the public health system can wait months for appointments and whilst they might be for non-emergency conditions they can still impact your everyday quality of life. Having insurance allows you to bypass this list and be seen more quickly often within weeks, so you can get on with living your life.

Greater of Choice of Healthcare Providers

Private health insurance allows you to choose a specific surgeon based on recommendations, reputation or specialisation, and to choose a time and place for treatment that is convenient for you, minimising disruption to your life and giving you a level of autonomy over the procedure.

Peace of Mind

Having health insurance gives you the peace of mind that if something were to happen to you and you required medical treatment that was outside of public health funding, or you wanted to be seen more quickly, then you can.

What Alternatives are There to Health Insurance?

If you decide not to opt for health insurance then in New Zealand there are still safety nets in place so that you can access medical care:

• The Public health system: offers a mix of free and subsidised care for essential treatment such as GP visits, emergency surgeries, specialist referrals and maternity services.
• Accident Compensation Corporation (ACC): provides funding for accidents and injuries
• Personal savings: you can set aside your own funds to cover any additional health costs, however, it’s worth bearing in mind that surgeries can be very expensive with common surgeries regularly being tens of thousands of dollars.

What to Consider When Choosing a Health Insurance Plan

Before you take out health insurance it’s pays to do due diligence, these are some factors to take into consideration:

• Coverage Type: do you want a comprehensive plan or a more basic plan?
• Policy Inclusions: does the cover include what you need now? Are there any added benefits?
• Policy Exclusions: as well as checking what the cover does include, check what is not
• Pre-existing Conditions: check to see how these are treated and whether they are included.
• Budget and Excess: Find the right balance for you between the premium payments and the excess.
• Insurer Reputation: is the insurer reputable and efficient at handling claims?

If you’re considering getting health insurance or you want to check that your existing policy still works for you, get in touch with our insurance advisor, Sunaina Sachdeva.