2026 March 29
There have been a few articles in the media lately about the cost of health insurance and the viability of keeping it as you age.
While the public system in New Zealand is excellent for acute, life-threatening emergencies, it often involves lengthy waitlists for non-urgent but life-altering elective surgeries, such as hip or knee replacements and cataract removals.
Maintaining health insurance ensures these procedures can be handled swiftly in the private sector, preserving your mobility and quality of life – especially during your retirement years.
As we age, the statistical likelihood of requiring specialised treatments, such as advanced cancer care or non-Pharmac funded drugs, increases. Health insurance acts as a vital tool for managing low-probability but high-cost medical events that could otherwise deplete a lifetime of savings. Without insurance, it can therefore force families to make difficult choices between financial stability and medical necessity.
The decision to keep health insurance is often about maintaining ‘options’ in a period of life where health is the greatest asset. Rather than viewing premiums as a sunk cost, they should be seen as a subscription to priority access.
For many older New Zealanders, the peace of mind that comes from knowing they won't be ‘stuck’ in a backlogged public system is worth the monthly investment.
There is no doubt that cost becomes a factor with premiums increasing significantly as you get older. This is simply because you are more likely to make a claim as you get older and therefore the premiums reflect that.
We do however believe that you can strike a balance between affordability and cover.
In many cases it makes sense to introduce (or increase) an excess on your base surgical plan. This helps retain valuable coverage in high-impact scenarios by self-insuring for minor procedures and contributing a manageable amount towards more significant operations or treatments. The savings here can often outweigh the additional excess – especially if the excess is payable per year rather than per claim.
If it is becoming cost prohibitive for you to have full cover for things like doctors’ visits, eye, and dental care, then the best option is to adjust the level of cover to ensure that the most essential surgical and specialist protections remain in place. This helps keep the safety net intact without breaking the budget.
As with any insurance, our advice is review, review, review. Any policy you have should be assessed each year to ensure that it still fits with your circumstances.
Not with ICIB Brokerweb and need a review of your life and health insurances? Drop us a line.