Health insurance costs under pressure in 2026

New Zealand’s private health insurance market is facing continued cost pressure, with medical inflation forecast to remain well above global averages.

According to Aon’s 2026 Global Medical Trend Rates Report, medical plan costs in New Zealand are projected to increase by 18% in 2026, up from an estimated 17% in 2025.

By comparison, the global average medical trend is forecast at 9.8%, with Asia-Pacific at 11.3%.

What is driving the increase?

Medical trend refers to the annual percentage increase in the cost of providing healthcare services. It is influenced by factors such as service utilisation, treatment costs, prescription medicines, and new medical technologies.

Aon’s analysis highlights several drivers behind New Zealand’s higher forecast, including:

• An ageing population
• A higher burden of chronic disease
• Increased use of private healthcare due to delays in the public system
• Greater uptake of advanced and higher-cost treatments

Cardiovascular conditions, cancer, hypertension, diabetes and musculoskeletal issues remain key contributors to healthcare expenditure globally.

Insurers reporting rising claims activity

New Zealand insurers have also reported increased claims volumes and higher treatment costs.

Medical inflation (the rate at which healthcare costs rise) has accelerated in recent years, driven by new medicines and treatments, workforce shortages, servicing costs, and growing demand. Industry commentary suggests that utilisation levels have picked up as people access care that was delayed in earlier years.

For insurers, this combination of higher costs and increased claims activity places upward pressure on premiums.

What this means for policyholders

For individuals and families, rising premiums can prompt questions about whether to adjust cover levels, increase excesses, or review benefit structures.

While premium reviews are a normal part of health insurance, periods of elevated medical inflation can make it more important to understand:

• What your current policy covers
• Where the key benefits sit
• Whether the structure still aligns with your needs and budget
• How excess levels and optional benefits influence cost

Health insurance is designed to provide access to private treatment when needed. The value of cover often becomes most apparent at claim time, which makes understanding the structure before changes are made especially important.

Reviewing cover thoughtfully

With medical costs forecast to remain elevated, some employers are reviewing benefit design and wellbeing strategies, while individual policyholders may be reassessing personal cover.

Changes such as reducing benefits or replacing policies should always be approached carefully.

Policy definitions, exclusions and underwriting terms can vary between providers, and decisions made purely on premium may have longer-term implications.

If you have questions about your health insurance, whether it relates to rising premiums, cover structure, or future planning, speaking with an insurance adviser can help you assess your options in context and make informed decisions.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Understanding what’s behind rising health insurance costs

Health insurance premiums have been increasing this year, a trend that’s made headlines and prompted questions from policyholders. While the numbers can sound confronting, the underlying reasons tell a more balanced story. Higher costs don’t just reflect inflation; they also show more people using their cover, accessing treatment sooner, and relying on private healthcare to take pressure off the public system.

According to RNZ, some customers have seen premium rises of around 25 percent. Insurers say this reflects record levels of claims, with Southern Cross members using their health insurance “more than ever before.” The organisation has processed more than 4 million claims this year, a sign that cover is being put to good use.

Why costs are climbing

Southern Cross chief executive Nick Astwick explained that about 70 percent of premium growth over the past two decades has come from members using more healthcare services rather than from rising treatment costs. In short, more people are getting the medical care they need, from diagnostics to elective surgery, and that activity needs to be funded.

Globally, New Zealand’s medical trend rate has also surged, rising from 7.4 percent in 2024 to 14.5 percent in 2025. Much of this increase is linked to postponed procedures finally taking place after Covid delays, the impact of general inflation, and the higher cost of new medical technology.

What insurers are doing

Local insurers have been making adjustments to keep their products sustainable and maintain benefits that matter most. For example, it was reported that Partners Life made small premium changes across its Private Medical Cover to preserve long-term guarantees such as non-PHARMAC drug cover and comprehensive wording.

For insurers such as Southern Cross, premium reviews help balance the needs of younger and older members in the same pool. Options such as surgical-only plans, higher excesses, or co-pay structures can help manage costs while keeping cover in place.

How advisers can help

Premium changes are a good reminder to review your health cover. A quick chat with an adviser can uncover simple ways to stay protected and ensure the policy still fits their needs and budget.

Many people who regularly review their cover, find that small adjustments such as increasing an excess or removing benefits they no longer use, can make cover more affordable without losing important protection.

Rising health costs are a complex issue, but they also show that private health insurance continues to play an important role in giving New Zealanders timely access to care. With good advice and regular reviews, it’s possible to keep that protection sustainable for the long term.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Health insurance for kids: what to consider

In New Zealand, we’re fortunate to have a generally strong public health system. Emergency care is free and of a high standard. If your child needs urgent treatment, they’ll be looked after. Children under 14 are also entitled to free GP visits, free prescriptions, and funded routine vaccinations.
But when it comes to non-urgent care like specialist appointments or procedures that affect day-to-day life but aren’t classed as emergencies, waiting lists can be long. For some families, this raises the question of whether health insurance for children might be worth considering.

What children’s health cover can include

Policies vary, but health insurance for kids may provide:

• Specialist care: Faster access to appointments for things like allergies, asthma, skin conditions, or ENT (ear, nose, throat) issues.
• Diagnostic tests: Cover for scans, blood tests, or X-rays that can otherwise involve long public wait times.
• Elective surgery: Quicker treatment for procedures like grommets for recurring ear infections, tonsil removal, or dental surgery.
• Dental and optical options: Some policies offer add-ons to help with vision checks or dental care not fully covered by the public system.

Having access to these services through the private system may mean fewer school days missed and less disruption to family routines.

Why some families choose it

• Reduced wait times: Insurance can give faster access to diagnosis or treatment, which can be important if a condition affects school, sleep, or wellbeing.
• Peace of mind: Parents may feel reassured knowing they have more options if their child becomes unwell.
• Lower premiums for kids: Cover for children is often less expensive than for adults, which makes it easier on the budget.
• Future continuity: Taking out cover while children are young and healthy may make it easier to keep that cover in place as they grow older. When your children are older, and ready to take over the policy themselves, they may be able to do so on the terms that were offered when you took out their policy. This means they may have cover for any medical conditions that developed in that time. It’s important to confirm with your insurance provider how continuity works under different policies.

Balancing costs and priorities

While health insurance is an additional cost in the budget, policies can often be tailored to suit different budgets and family needs. For some, it’s about balancing the cost of premiums with the peace of mind of quicker access to treatment when needed.

Putting it in perspective

Many factors contribute to children’s wellbeing (such as healthy food, active play, sleep routines, and regular check-ups). Health insurance doesn’t replace these, but it can complement them by providing financial support and faster access to care when needed.

While health insurance for children might not be a must-have for every family, understanding the pros and cons can help you make an informed decision. If you’d like to talk through whether cover might make sense for your family, get in touch.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Do you need health insurance if you have public healthcare?

New Zealand’s public healthcare system provides essential medical services for eligible residents, including free hospital care for emergencies and serious conditions. But while it’s a solid foundation, it may not always meet every healthcare need — especially when it comes to timing, treatment options, or access to non-urgent care.

That’s where private health insurance can play a key role.

What the public system covers well

Public healthcare does a good job of supporting urgent or acute needs. If you’re in an accident, develop a serious illness, or need emergency surgery, the public system steps in — often at no direct cost. You can learn more about the public system and how it works at health.govt.nz.

But for many Kiwis, the challenge isn’t access to emergency care — it’s the waiting for non-urgent procedures, diagnostic tests, or specialist appointments.

Why people turn to health insurance

Private health insurance helps fill the gaps that the public system can’t always cover promptly. Here’s where it can make a real difference:

• Faster treatment: Avoid public waitlists for non-urgent surgery and specialist consultations.

• More choice: Select your preferred provider or seek second opinions.

• Greater certainty: Plan treatment dates around your life — not a waiting list.

• Wider access: Some policies offer cover for treatments not fully funded by the public system, such as certain medications, dental surgery, or non-Pharmac drugs.

These benefits are particularly valuable for people who are self-employed, have young families, or simply want more control over their healthcare journey.

When advice matters

Choosing the right level of cover can be tricky. Every insurer offers different policies, exclusions, and levels of support — and what suits one person may not suit another. That’s why speaking with a financial adviser is so important.

An adviser can help you:

• Understand what you’re currently covered for

• Identify any potential risks or gaps

• Compare policies and providers in the market

• Regular reviews to make sure your cover suits your stage of life, income, and needs

Health insurance isn’t about expecting the worst — it’s about being ready if something happens. And with expert advice, you can make a confident, informed decision that gives you and your loved ones greater peace of mind — get in touch with us today.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Emergency funds and income protection: Your financial safety net

Life can throw unexpected challenges your way, and having a financial safety net in place can help you navigate these times with less financial stress. Combining an emergency fund with income protection insurance can be a solid strategy for safeguarding your financial wellbeing, offering both short- and long-term protection.

Why an emergency fund is essential

An emergency fund is money set aside specifically for unexpected expenses, such as urgent medical bills, home repairs, or sudden job loss. This fund can provide funds to cover essential costs without relying on credit or going into debt, providing immediate financial relief during times of crisis.

The role of income protection insurance

While an emergency fund provides a cushion for short-term challenges, it may not be enough for prolonged financial disruptions. This is where income protection insurance may be essential. Designed to replace a portion of your income if you’re unable to work due to illness or injury, it helps you maintain your standard of living and meet ongoing financial obligations while you recover.

How emergency funds and income protection work together

Although both an emergency fund and income protection insurance provide financial security, they serve different purposes. When combined, they can form a comprehensive safety net, supporting you through both immediate and extended financial challenges.

Immediate vs. long-term needs

• Emergency fund for immediate needs: Think of your emergency fund as your first line of defence. It helps cover short-term expenses, such as a car repair or an unexpected medical bill, so you don’t have to rely on credit cards or loans.
• Income protection for long-term support: If you suffer a serious illness or injury that prevents you from working, your emergency fund may not last long enough to replace your lost income. Income protection insurance ensures you continue receiving a portion of your salary—typically up to 75% of your gross income—for an extended period, allowing you to cover ongoing expenses until you can return to work.

Protecting your savings

Income protection insurance also helps prevent you from depleting your emergency fund for long-term income loss. This can preserve some of your savings for other financial priorities, such as a family emergency, a major purchase, or retirement planning.

By having both an emergency fund and income protection, you’re also less likely to rely on credit cards or loans during difficult times. This reduces financial strain and allows you to recover without the burden of high-interest repayments.

More comprehensive financial security

A combination of an emergency fund and income protection insurance can prepare you for both short-term and long-term financial setbacks. Your emergency fund handles immediate costs, while income protection provides a steady income if you’re unable to work for an extended period. Together, they can give you financial peace of mind and allow you to focus on your health and recovery rather than financial concerns.

Building a resilient financial future

Integrating an emergency fund with income protection insurance can provide a financial safety net, providing the flexibility and security to financially manage life’s uncertainties. Here’s how you can build a plan that works for you:

1. Set your savings target: Aim to save three to six months’ worth of living expenses in your emergency fund. Then, consider how income protection might fill in the gaps if you’re unable to work for longer than your saved living expenses, due to illness or injury.
2. Automate your savings: Set up an automatic transfer to your emergency fund each month. This can make saving easier and provide consistent growth.
3. Tailor your income protection coverage: Policies can be customised to suit your needs, including adjusting the waiting period and benefit duration. An insurance adviser can help you choose the right coverage that complements your emergency fund and financial goals.
4. Stay consistent: Building both an emergency fund and securing income protection insurance takes time, but consistency is key. Regular contributions to your emergency fund, along with maintaining the right coverage, can provide longer-term financial stability.

Ready to take control?

Combining an emergency fund with income protection insurance can offer comprehensive protection and peace of mind. Whether you’re just starting to build your savings or considering income protection for the first time, our advisers are here to help. We’ll work with you to create a personalised plan that fits your needs, ensuring you’re financially prepared for whatever life throws your way.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Smart ways to keep health cover costs down

Health insurance is an important part of financial security, helping to cover medical costs when needed. However, premiums can be a significant expense. While reducing costs is possible, it’s essential to ensure you’re not compromising necessary coverage.

Here are some general strategies that may help lower health insurance premiums while maintaining adequate protection.

Compare plans and cover options

Health insurance plans can vary in cost and coverage. Reviewing different options can help ensure you’re not overpaying for benefits you may not need. Some policies offer lower premiums with a higher excess (the amount you pay when making a claim), which may work well for those who can meet the costs of the excess payable. However, it’s important to balance affordability with having the right level of cover for your needs.

Some policies allow you to customise your cover by selecting only the benefits you need. For instance, if you rarely visit the doctor, you might opt out of cover for GP visits to lower your premium. Similarly, if you don’t require certain specialist services, removing them from your policy can reduce costs while still maintaining essential protection. Reviewing your policy to exclude optional add-ons can be a smart way to manage expenses without compromising important cover.

Employer health plans

If your employer offers health insurance as part of your employment package, this can often be a cost-effective option compared to taking out an individual policy. Many employers negotiate group rates with insurers, which can result in lower premiums and broader coverage. Some may also subsidise part of the cost, making it even more affordable. If your workplace provides this benefit, it’s worth reviewing the details to understand what’s included and how it compares to other options available to you.

Multi-policy discounts

Some insurers offer discounts if you bundle health insurance with other types of insurance, such as life or income protection. If you already have policies with a provider, it may be worth checking whether consolidating them could lead to savings.

Review your cover regularly

As your circumstances change, so do your health insurance needs. Reviewing your policy annually with an insurance adviser ensures you’re not paying for coverage that no longer suits you. For example, if your policy includes benefits that you no longer use, adjusting your coverage may help reduce costs.

An insurance adviser can also help ensure your protection plan remains affordable and manageable for your specific financial situation.

Every individual’s situation is different, and what works for one person may not be suitable for another. For personalised advice on finding the most suitable health insurance options for your needs, consider speaking with an insurance adviser. They can help assess your situation and explore the most cost-effective options available.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Navigating personal insurance with an adviser

When it comes to protecting your financial future, personal insurance plays a vital role. Whether it’s health, life, income protection, or trauma cover, the right cover can provide security and peace of mind.

Sometimes, understanding which policies are right for you can be complex, which is where having an insurance adviser by your side can be invaluable. Their expertise and personalised approach can help you navigate the world of personal insurance with confidence. Here’s why.

Assessing your personal needs

Insurance is not a one-size-fits-all solution. Your financial situation, health, and future goals are unique, and an insurance adviser understands how to assess these factors comprehensively.

Rather than selecting generic policies, an adviser will discuss and understand your specific circumstances, and then tailor their recommendations to fit your specific needs, to help ensure you are not underinsured or paying for unnecessary benefits.

Expert knowledge

With so many insurance options available, it’s easy to feel overwhelmed by the varying terms and sometimes the fine print. An insurance adviser brings expert knowledge and understanding of these products, staying up-to-date on the latest policy options, exclusions, and claim conditions.

This can help you avoid common pitfalls, such as selecting a policy that doesn’t cover critical areas that might matter to you or choosing one with restrictive terms. Expert guidance provides you the information you need, to make sure you ae able to make an informed decision about the policies you’re considering, allowing you to make appropriate choices for your specific situation.

Tailored strategies for different life stages

Your insurance needs change as you go through different life stages. Whether you’re starting a family, buying a home, or nearing retirement, an adviser can help with adjustments to that your cover can evolve with you.

They will offer to regularly review your policies to make recommendations. For example, adjusting your life insurance as your family grows or looking at other covers that might be more suitable for your changing situation and needs. With a long-term view of your financial security, advisers offer ongoing support to make sure your insurance remains aligned with your circumstances.

Claims assistance

When you need to make a claim, insurance advisers will help guide you through the process, ensuring that your case is handled efficiently. From guiding you on the necessary documentation to managing communication with your insurer, advisers can alleviate stress and make the claims process as smooth as possible, so you can focus on what matters most during difficult times.

Cost-efficient solutions

Since advisers have access to a wide range of policies, they can recommend options that are suitable for your financial situation and goals. Advisers are also typically remunerated by the insurance providers, so this expert guidance is usually provided at no direct cost to you. With support from an adviser, you can be confident that your insurance plan is tailored to your unique needs, avoiding unnecessary extras and ensuring your budget is used efficiently.

Like to talk?

Personal insurance provides the financial safety net you need when life throws the unexpected your way. By working with an insurance adviser, you can access expert advice, tailored solutions, and long-term support to provide security for your financial future. If you’d like to chat about a personalised protection plan, we welcome you to get in touch with us.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

The importance of income protection insurance

Why should you consider income protection? Well, let’s start with this: New Zealand’s standard paid sick leave is ten days per year, after you have been employed by your employer for six months, accumulating to a maximum of 20 days in two years.

So, how would you cope financially if illness or injury prevented you from working for much longer? Do you have savings? How long would they last, and what would happen to the planned holiday or new car you had earmarked those funds for?

Income protection insurance provides a financial safety net if you cannot work for a prolonged period. It is designed to replace a large portion of your income, so you can maintain your and your family’s living standards while you recover.

Staying on track with your income

Whether you’re saving for a future goal, building an emergency fund, or planning for your children’s education, maintaining a steady income stream is essential. Income protection insurance can help you stay on track financially until you are able to resume working at full capacity.

Tales of the unexpected

Life is unpredictable – we’ve all heard the tales – and unexpected events can disrupt your ability to work. Income protection insurance can provide you with financial peace of mind, helping you to meet your financial obligations so you can focus on your health and recovery.

Tailoring cover to your situation and needs

Income protection insurance is flexible. You can adjust the wait period, select a suitable cover amount (to the maximum available insurable percentage of your gross income) and the benefit period suitable for your situation and needs. The wait period is the time you will need to be off work before you start receiving payments, and choosing an appropriate cover amount ensures you receive adequate financial support. Tailoring these options helps to align your cover with your needs and circumstances.

Like to know more?

Understanding income protection insurance is vital, but navigating the various provider offerings and terms can be challenging. That’s where we come in – we are here to help you navigate through all the information, saving you time from reading multiple policy wordings.

As advisers, we can guide you through the process and help you secure your financial future. Get in touch for personalised advice, tailored to you.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Understanding insurance options for cancer

Cancer might feel like a distant concern for some, but for many New Zealanders, it becomes a reality.

While New Zealand’s public healthcare system provides essential cancer treatment, it may have limitations in terms of longer waiting times, access to certain treatments in private facilities, and choice of specialist healthcare providers.

To safeguard your financial stability and ensure access to a broad range of treatment options, understanding your insurance options can be key.

Here are some essential points to think about.

The prevalence of cancer

Cancer is more common than some may realise. According to Te Aho O Te Kahu, nearly 25,000 people in New Zealand are diagnosed with cancer each year.

Early detection and treatment are important to being able to make a recovery, and health insurance can play a significant role in accessing timely care.

Key insurance options to consider

Health insurance: The public healthcare system can have long waiting lists for diagnosis and treatment. Additionally, some medications that are approved by Medsafe but are not funded by Pharmac can be difficult to access or are unaffordable without any subsidy or assistance. Health insurance can aid in getting faster access to private healthcare, including diagnostics and treatments, and may also provide cover for non-Pharmac medications.

Trauma insurance: Trauma insurance provides a lump sum payment if you’re diagnosed with one of the illnesses or conditions specified in your policy; most trauma policies include various forms of cancer. This lump sum can be used for medical expenses, compensating for lost income, paying down debt, or meeting other financial needs as a result of your diagnosis and treatment.

Insurance for cancer survivors 

If you are a cancer survivor or know someone who is, there are important coverage options that may still be available, although the condition related to the previous cancer may be excluded.

Factors such as the length of time you have been in remission and the specific type of cancer can influence the availability and scope of insurance options. Generally, the longer you’ve been in remission, the greater the likelihood of being able to access a wider range of insurance options.

Want to learn more?

If you’re interested in protecting your financial future from the financial impacts of cancer or want to explore insurance options after having cancer, get in touch with us. We’re here to help you navigate your options to determine the right solution for your specific needs and goals.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Health and trauma insurance: What’s the difference?

You’re likely familiar with health insurance, and you might have come across trauma insurance as well. But are you aware of the differences between the two?

Both are designed to provide support during times of illness, but they operate in different ways. Depending on your circumstances, having both could be advantageous. So, let’s delve into what sets them apart.

Health insurance

In New Zealand we have a free public health system, but there can be long wait times when needing diagnosis or treatment for what are considered non-urgent or non-life-threatening conditions. Health insurance can steps in to help cover the costs of diagnosis and treatments obtained through private healthcare providers.

If you haven’t managed to put away a substantial emergency fund for medical expenses, health insurance can be a valuable tool in those instances. Health insurance can allow you to access private specialists promptly for necessary diagnostics and procedures,avoiding the sometimes extensive waiting lists of the public system.

Trauma insurance

In contrast, trauma insurance provides a lump sum payout upon diagnosis of a specified health condition(s). These can include certain cancers, strokes, or terminal illnesses – among others outlined in your policy.

The lump sum payment gives you flexibility to utilise it for various purposes, such as covering your mortgage, treatments that are not covered by insurance, or replacing a portion of your income during the time you are unable to work, allowing you to focus on recovery.

Combining the two

These two insurance types respond differently even when covering the same condition. For example, you might use health insurance to cover the cost of surgery and then rely on trauma insurance to provide financial support during your recovery period. Depending on your specific needs, combining the two can help strengthen your safety net for robust protection and coverage.

Like to learn more?

If you’d like to mitigate the financial impact of a serious health issue, health and trauma cover might be on your mind. Reach out to us for assistance in finding a solution that suits your specific needs. We’re here to help you navigate the complexities and make informed decisions about your insurance coverage.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Do you need mortgage protection insurance?

What would happen if, due to unforeseen circumstances, you found yourself unable to meet your mortgage repayments? 

Enter the realm of mortgage protection insurance—a cover designed specifically to offer that peace of mind. Here’s what it is, how it operates, and when it can come in handy.

How does it work?

At its core, mortgage protection insurance is designed to cover your mortgage repayments if you’re unable to do so due to interruptions to your income because of situations like illness or injury. 

Once you’ve taken out a policy, if you find yourself in a situation covered by the insurance, claim payments will be paid monthly, after the end of the wait period. The length of time it will cover these payments varies by policy, so it’s essential to understand the specifics. You can choose how much cover you need (usually up to a maximum of 110% of your mortgage payments), the wait period (the amount of time you need to wait before you start receiving the payments), and the payment period (how long the payments will be made for while you remain off work due to the illness or injury). 

When is mortgage protection cover beneficial?

It largely depends on your needs, but here are some common scenarios:

• First-home buyers: If you just bought your home, you know this well: venturing into homeownership for the first time can be an exciting but also nerve-wracking experience. With mortgage protection insurance, new homeowners can alleviate some of their concerns around unexpected events impacting on their ability to make repayments on their newly acquired debt. 
• Families: For households where the loss of income from one family member, especially the primary breadwinner, would lead to financial strain, this insurance can provide a buffer.
• Individuals without significant savings: If you don’t have a hefty emergency fund tucked away, the insurance can serve as a safety net, helping you to continue making your mortgage repayments. 

Mortgage protection vs income protection

While both mortgage protection and income protection insurance provide financial security in challenging times, they operate a bit differently. Income protection is broader, replacing up to 75% of your gross pre-disability income if you’re unable to work. It could cover not just your mortgage but other living expenses too.

On the other hand, mortgage protection is more specialised. The amount of cover you can take out is based on the amount you need to cover your mortgage repayments. It’s a good idea to weigh the costs and benefits of each type of cover and consider them in the context of your broader financial situation.

Like to know more?

While hoping for the best in life, it’s prudent to prepare for the unexpected. Mortgage protection insurance offers a layer of security, ensuring your home remains in your hands even if your income stops. 

As with any insurance, it’s essential to read the fine print, understand the terms, and seek advice to choose the policy that fits your unique needs. So if you’d like to know more, get in touch: we’re here to help. 

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

How to choose health insurance

Depending on your situation, health insurance can be a proactive tool for your physical and financial well-being. 

Here in New Zealand, we can rely on a solid public system, but there can still be significant waiting times for certain treatments. Having appropriate health cover can ensure more immediate care, providing peace of mind. But with so many options available, choosing the right plan for your needs can feel overwhelming. 

So, here’s some guidance and insights to get you started. 

Assess your needs and circumstances

Your health is as unique as your fingerprint. Start by taking a comprehensive look at your health history and needs. Think about how often you’ve needed medical attention in the past, any ongoing conditions you have, and if there are specific treatments or specialists you would like to have access to in the future should you need to. 

These reflections can help you determine the level of coverage you may need, and whether you might have pre-existing conditions to disclose.  

But you don’t have to do this alone; discussing these points with an adviser can give you a clearer picture of which plans might align with your individual situation.

Understand the different plan types

Health insurance options vary, ranging from the basic plans covering only hospital or specialist treatments, to more extensive policies that include general practitioner visits, non-Pharmac funded treatments, and even some alternative therapies. Gaining clarity on what each plan type entails will help you identify which aligns most closely with your health priorities. As always, don’t hesitate to contact us: we can help you make an informed decision.

Consider the costs

It’s essential that your insurance premiums fit within your budget, also keeping in mind that costs will increase as you age. Also, make sure you delve into details like the policy’s excess (the amount you’ll have to pay upfront each time you claim, with the remainder being covered by the insurer), and any caps or limits on claims.

The higher the excess, the lower the premiums (all other things being equal). So, it’s about striking a balance between manageable monthly costs and comprehensive coverage. Once more, we can guide you through this and will be happy to answer any questions you may have. 

Review additional benefits

Here’s another area where we can assist. Nowadays, health insurance isn’t just about covering sickness; it’s also about promoting wellness. Different providers offer different extra benefits like free or discounted health checks. Some plans include benefits like sessions with physiotherapists, and even wellness and health promotion programmes. 

Think about which of these benefits would resonate with your lifestyle. We can help you spotlight plans that are not just about reactive care, but also proactive health management. 

We’re in your corner

If you’re looking at exploring your health insurance options, get in touch. We’re just a phone call away and happy to answer all your questions, big and small.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

How to keep your insurance budget-friendly

The cost of living has been top-of-mind for many New Zealand households over the past year. As prices have crept up, you might have spent some time looking at your budget, and working out what expenses you might be able to trim.

As you probably already know, insurance is the type of thing that can be extra valuable when times are tight. But if you’re thinking about how to fit it into your budget, there are options to consider. We recommend you seek advice on any potential changes before making them.

Are you prioritising the right cover?

A really good way to ensure that you’re getting value from your insurance is to chat with us about what’s important to you and what you most want protection for. As insurance advisers, we can help you prioritise financially protecting the things that you most value, to ensure you’re getting maximum protection from your insurance budget for the things that are important to you.

Consider stand-down periods

If you’re able to wait a little longer before receiving a payout for things like income protection, it can make your policies a lot more affordable. Usually, these types of cover pay out when you’ve been off work for either four weeks, eight or 13. If you have the ability to “self-insure” for 13 weeks before your insurance starts to pay out, that could be a big help in reducing the premiums. We can talk through these options as it’s important to ensure that the structure of your policies is right for your situation and objectives.

Check your levels of cover are right for you

If you took out your cover during a period of your life when you had a lot more obligations than you do now, you might find that you have more cover than you need for your situation and priorities. Once again, we can help you check whether the amounts you’re insured for are still appropriate.

Removing extras

Sometimes, you’ll pay a little more for extras that you might be able to manage without. We can go through your cover with you to identify any add-ons that could be trimmed, depending on your situation.

Check whether your details need updating

Sometimes, insurance policies can have a loading on premiums for things that are seen as higher risk. If your policies have any premium loadings that you think are no longer relevant, we can help you get these reassessed. If you stopped smoking a while ago, for example, or you’ve left a risky occupation, that could make your premiums more affordable.

Consider level cover, if it’s appropriate

If you’re concerned about your insurance cover becoming more expensive as you get older, you could consider a level-term insurance policy. This means you pay a bit more in premiums when you’re younger than you would on policies that have premiums that increase with your age each year, but the premium only increases with inflation as you get older. This may be worth talking about, particularly if you’re relatively young.

Check what else is on offer

An advantage of having an insurance adviser on your side is that we’re familiar with the wide range of policies that are available from insurers in New Zealand. And we can help you work through whether your current portfolio of cover is the optimum option for you.

Like to talk?

As your insurance advisers, we’re here to make sure you get the most out of your policies, so you can benefit from maximum peace of mind. If it’s time for a check-up, or you have any specific questions you’d like answered, get in touch.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Eleven things it’s worth spending money on

We usually focus on all the ways to save money, but the reality is, sometimes it’s worth splashing out. Here are eleven things that it’s worth spending your money on.

Your health

Skimping on things like doctor’s appointments and eye checks can be a false economy. Stay on top of your appointments so that you can tackle problems before they turn into serious or expensive issues.

Your retirement savings

You may regret any budgeting that removes your ability to save for retirement. You should at least contribute as much to your retirement savings account as your employer – and, if you’re in KiwiSaver, the Government – will match.

The money you put into retirement savings now will have years to compound and could grow to a much bigger nest egg when you get to the point where you need it.

Your car

You don’t need to buy a flash car, but if you opt for a cheap vehicle, make sure you factor in how much it’ll cost you to run. A cheap car might be easier on your savings account when you buy, it but can end up much more expensive over the long run. Also, if your car is starting to suck up a lot of money in maintenance costs, it might be time to look at upgrading.

Travel

Sometimes it’s worth spending a bit more to make travel run more smoothly. When you’re booking your flights, an eight-hour stopover in a random airport to save $200 might not seem so bad. In the moment, though, it’s a different story.

Shoes and clothes

“Fast fashion” is all the rage right now, with mass-produced inexpensive clothing piling up on retailer shelves. But sometimes, spending a bit more can be a better idea. If you spend twice as much for shoes that last three years than you would for a pair that last six months, you’ll come out better off. The same applies to things such as a great coat or suit.

Your mortgage

The more money you can put towards your mortgage now, the more money you can save over time. Increase your repayments to the highest level that fits in your budget – “future you” will thank you for it.

Dental care

It can be expensive but putting it off dental care can end up being even pricier. Get an annual dental check-up so you can get things sorted before they can become big ordeals.

Education

Upskilling, whether that’s with a degree for a first career, adding to skills you already have or picking up new ones for a change of direction, can really pay off by boosting your ability to earn money.

Make sure you choose education from reputable institutions that will land you a step closer to where you need to be – not just expensive courses for the sake of it.

Services that save time

It can seem like a luxury to pay someone to do your cleaning, gardening or home maintenance. But if it frees you up to do other income-earning work, you might end up better off.

If your hourly rate is greater than that charged by the people offering the service, you could benefit from outsourcing your tasks to others. Even if it’s not, you may decide that the boost to your lifestyle is worth the investment.

Work tools

Don’t scrimp on the tools you need to earn a living. If you rely on a laptop or camera, for example, ensure that you have reliable models that will deliver the results you need every time.

And of course, insurance

Money spent on the right level of the right insurance is money well spent. It can help you pay for expensive treatments and even take care of your loved ones when you’re not there to do it yourself.

If you’d like to make the most of your insurance spending and ensure you’re maximising value for money, please get in touch. We’ll be happy to walk you through your options.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

New year, new Insurance policies? Nine signs to watch out for

The beginning of a new calendar year is a great time to hit the ‘reset’ button and start with a blank slate. With a fresh list of new year’s resolutions in hand, and perhaps a new exercise regimen ready to go, do you need to make changes to your insurance cover too? Here are nine signs that it might be time for a change.

You haven’t checked in on how your products compare to the market for a while

It’s not only people who change – products do, too. If you’ve not run a ruler over yours recently, now may be a good time to do it, with our help. As Insurance advisers, we can help you work out whether the policies you have in place are still right for you – and what would be the most cost-effective options for your circumstances.

Your concerns are different

When you first took out an insurance policy, you had certain priorities, but over time your circumstances may have changed. For example, you might be interested in getting cover for non-Pharmac treatments or ensuring you have income protection policies in place. Get in touch if you’d like to discuss what types of cover are the right fit for your current situation.

You’ve gone into business

Being self-employed can throw up a whole lot more insurance questions. You may need cover for your business, your stock and assets and your key people. You might also want to get some advice on whether you should opt for ACC CoverPlus or CoverPlus Extra. Once again, we’re here to help.

Your relationship status has changed

Whether you’ve tied the knot or separated, it’s important to check that your Insurances are appropriate for your new situation. Perhaps, your combined income allows you to raise the level of your cover, or you’re now relying on one income but, at the same time, your Insurance needs have reduced.

Your health has changed

Sometimes, when you take out a policy, there’s an exclusion that applies for a set period, but you can ask to have it reassessed if a health condition goes away or does not recur. Plus, if you were a smoker when you applied for Insurance, but have been smoke-free for more than 12 months, you can notify your Insurance provider and they will likely offer you (significantly lower) non-smoker rates.

You want to fix your costs

If you’re young, you may be able to lock in a level premium option that will keep your policies much more affordable throughout your life. Level premiums usually start higher than their age-related (stepped) counterparts, but they don’t increase with age.

It can be a good option for policies that you expect to have for a long time. Please contact us if you’d like to learn more.

You can afford to spend more on insurance

Did budget constraints factor into your decision to opt for the barest minimum, when you took out your insurance policy? You might find that being able to spend even a little bit more on premiums can give you access to a much more comprehensive cover.

You’ve had kids or are planning to

Having children can change your perspective on things, including the potential risk you may face and the need to protect your financial future.

If you have new little members of your family, you may want to increase your cover. Keep in mind that some insurance providers also allow families to add their kids on to trauma or health policies without any underwriting and at low cost.

You want to better target your health cover

Health insurance can be invaluable but there’s no one-size-fits-all. You might be interested in everyday cover or a full suite of comprehensive insurance – or maybe just protection for surgery or major hospital stays. It’s worth looking at what you have in place and whether it’s a good fit.

Have an insurance question?

We have answers. If you’d like to work out whether your insurance needs an update, please get in touch. We’ll be happy to help.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Insurance through the decades – here’s how your needs can change

Throughout our lives, we go through a number of changes. And along the way, our Insurance needs change too. So here’s a guide to the most common Insurance types at every life stage.

20s

You’re young – why would you need insurance? The reality is, there may be quite a few reasons.

This a period of your life where you might be finding your feet and having a bit of fun. Health insurance is worth considering so that, if you were to suffer an ailment or illness that could not be treated quickly through the public system, you could choose to go private and get back to normal as quickly as possible.

Young people often think about getting life insurance when they take on commitments such as a mortgage or children. But even if you don’t have those things yet, there are still reasons to think about life insurance. Even taking out a small amount of life cover can help you circumvent any conditions that may be considered ‘pre-existing conditions’ later on.

Income protection may also be a good option, depending on your circumstances. Once again, it’s about being financially independent no matter what life throws at you.

Whatever insurance type you choose to take out, the benefit of buying any form of personal insurance young is that the premiums are usually comparably lower. And as we said, you can also lock in a policy before you develop conditions that an insurer might exclude if you took it out later.

30s

Commitments often become more pressing during your 30s. Financial Services Council‘s data showed that 13 per cent of people in their 30s who did not have insurance had thought about taking life insurance in the past two years. About 40 per cent of all respondents aged over 25 had a life policy.

Children are a big motivator for this. Life insurance means you do not have to worry about who would provide for, or look after them, if you were not around to do that.

You might also consider a trauma or total permanent disability policy. These types of cover pay out a set amount if you suffer one of a range of serious, usually life-threatening conditions, or if you have a disability that means you won’t work again. They are a good way to help you reduce the financial stress on your family at a time of emotional strain.

40s

Your 40s are often your peak earning years, but at the same time, you might still have significant debt and children living at home with you.

In this scenario, protecting your ability to earn an income is key. From income protection to life, trauma and health insurance, having the right mix of policies in place can make all the difference. The important thing is to ensure you get the right level of coverage for your budget, so please don’t hesitate to contact us: we can help you achieve value for money without compromising on your needs and goals.

50s

A focus on earning usually continues through your 50s as you start to think about preparing for retirement, so an income protection policy can still be important to keep you on course.

If you paid off your debt, you may start to think about dropping or reducing your life insurance coverage.

Also, if you have health insurance in place and want to make sure it stays affordable in the long run, now may be a good time to think about the excess options to reduce premiums while still maintaining the valuable cover.

60s

At this stage, you may have had a life insurance policy with level premiums for decades. If so, it can be a good idea to keep it going through retirement, as sometimes these policies are used to transfer wealth to the next generation.

If your investments and assets (like your house) are set up to allow you not to work, you shouldn’t need a lot of other financial protection. Consider maintaining your health insurance though, so that if you were to require an operation that had a long public waiting list, you could choose to go through a private provider instead.

Want to talk through your options? We can help you work out what insurance you need, no matter what stage of life you’re at. Get in touch today.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek advice from a financial adviser. 

When do you need a Personal Insurance check-up?

Thinking about your Insurance may not be high on your list of priorities. But if you’d like to make sure that your cover is still the best fit for you – and will protect you at claim time – it’s important to do a regular check-up.

Here’s when is a good time to schedule a chat with an Insurance adviser like us.

Your relationship changes

What you need as a single person and what you might need as half of a couple can be quite different.

When you’re in a couple, for example, you might have joint debts that you wouldn’t want your partner to be left to cover alone if something were to happen to you. Plus, many couples choose to own each other’s Life Insurance policies to make claim time easier – so it’s a good idea to talk to an adviser about how best to structure your policies.

Similarly, if you have recently come out of a relationship, you may want to ensure that the details on your policies are correct or adjust the level of coverage you’re getting.

Your commitments change

For many people, taking out a mortgage is the catalyst for entering the personal Insurance market.

If you take on new, significant debt, you’ll need to make sure that you have sufficient cover for that. It could be Life Insurance to help those you might leave behind, or Income Protection, Trauma or TPD to ensure that you could cope financially if an accident or illness meant you couldn’t work.

Many people also find that, when they have children, their Insurance needs increase again. Little people usually bring big expenses and amplify the need to provide continuity for the family, no matter what life throws in the way.

You pay off debt

Once you are clear of a significant debt such as a mortgage, your need for some Insurance products may decline.

As Insurance advisers, we can help you work out how to allocate your Insurance budget to maximise the benefit you get from the amount you spend.

Your work-life significantly changes

If you go into self-employment, get a big pay rise or retire, consider re-assessing your cover.

Being in business on your own can mean a whole lot of new Insurance types to consider – like Business Continuity, Key person or Shareholder Cover.

When you start to earn more, you might want to insure a higher income so that your quality of life can be maintained, no matter what happens. We can talk to you about your options – some may not even require additional underwriting.

We’re just a phone call away

It’s worth checking in with us on a regular basis, regardless of what’s going on in your life. We can help you understand developments in the market and whether your policies are still the right option for you and your family.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek advice from a financial adviser.