Health insurance
When baby arrives, your health suddenly seems a lot more
important. When you're starting a family, it's quite natural to
start thinking more about your health and wellbeing and how you'll
keep your children healthy. So we asked New Zealand's largest
health insurer, Southern Cross Health Society, for some pointers on
health insurance for new families.
With a family:
- More people depend on you to be fit and well.
- You'll want to get medical treatment as soon as it's
needed.
- There are more of you, so you'll potentially be paying for more
medical treatment.
- Your budget probably can't cover large unexpected
expenses.
Health insurance can mean avoiding public waiting
lists
As New Zealand resident or citizen, if you need emergency
treatment a public hospital will provide it for you. But if you
don't need immediate treatment, you'll be assessed by the public
health system and waitlisted for elective services. This could take
months or even years.
For non-emergency treatment, such as getting grommets for your
child (for recurring ear infections), health insurance can help you
and your family get the treatment you need.
Health insurance protects your budget
Elective surgery can be very expensive. It's not the sort
of thing young families can normally afford. That's why it pays to
think about health insurance for you and your
children.
Health insurance and pregnancy-related costs
If you are a New Zealand resident or citizen you are
entitled to free public healthcare when you're having a baby, so
most health insurance policies don't cover these costs.
Most Southern Cross plans offer an obstetrics allowance if
you've had 3 years or more continuous cover. Here are some
examples:
This allowance means you can be reimbursed for expenses from an
obstetrician/ gynaecologist, anaesthetist and accommodation in an
approved facility, up to the specified amount.
Choosing a health insurer
First, check if your employer or your partner's employer
offers a subsidised health insurance scheme.
If not, you can research health insurers and plans online. It
can also help to phone a health insurer or adviser.
Getting health insurance when you have a health
condition, or have had one in the past
If you already have a health condition when you apply for
health insurance, this is called a "pre-existing condition". You
would not generally get cover for it, as health insurance is
primarily intended to cover treatment for conditions that arise
after the policy has been taken out. That's why it's a good idea to
take out health insurance before you need it.
When to get health insurance for your baby
- As soon as your baby is born you can add him/her to either
parent's policy.
- If you don't already have health insurance, you can take out a
policy for you and your baby at the same time.
- Your baby will need to be on the same policy as one of its
parents.
Tip: If you add your baby to your Southern
Cross policy before he/she is three months old, Southern Cross may
cover some pre-existing conditions. For example, if your baby gets
an ear infection at two months old and later requires grommets,
Southern Cross will cover it.
How do you choose a plan?
There are two main types of health insurance plan.
An insurer might have policies that offer varying levels of cover
between the two.
- Major medical plans - for hospital and specialist cover
only. These plans generally cover major medical expenses
(operations and specialists), but don't cover day-to-day health
costs.
Example: A popular Southern Cross plan in this
category is the
Wellbeing Two plan. It offers major medical cover with
the option of adding modules for day-to-day care, dental and
vision, and body care.
- Comprehensive plans - for a wider range of cover. These plans
cover the major medical costs plus day-to-day health costs such as
doctors visits, prescriptions, dental, optometry.
Example: The most comprehensive Southern Cross plan is the
UltraCare plan. It offers high surgical cover and
day-to-day benefits.
What to consider when choosing health insurance
The cost of your health insurance will depend on things
like how many people are included, what it covers and the excess
(if any). An excess is the amount you have to pay towards the cost
of each insurance claim. Choosing a higher excess usually means
you'll pay a lower premium.
You should shop around, because some insurers are more
family-friendly than others. For example, with Southern Cross
you'll only pay for the first two children on your policy - the
rest are free. A child is under 21 years old.
Low claims rewards are another thing to ask about when you're
choosing your health insurer. For example, if you don't claim or
your claims are below a certain level, Southern Cross offers a low
claims reward after two years of membership.
You need to be confident that when the time comes to use your
health insurance, your claim will dealt with promptly and
efficiently.
Here are some things to consider.
- What is the insurer's reputation for paying out claims?
- How good is its customer service?
- How long has it been in business?
- How financially strong is it?
Tips
- Talk to your friends. Find out who they are insured with and
what their experience with that insurer has been like.
- When you're comparing prices, ask for a quote for your age now
and when you're older. You'll find some insurers continue
age-related premium increases when you're over 65.
- If you're buying through an adviser, ask how much commission
they receive from each health insurer. Commission rates can vary
considerably. Some advisers might speak more favourably about a
health insurer if it pays them a larger commission. You should
ensure you are buying the right policy for you, not the policy that
pays the adviser the highest commission.
To find out more
- Call Southern Cross on 0800 100 777, visit
southerncross.co.nz/society, or follow this link
for a
free quote.
- Download the Health Funds Association of New Zealand's brochure
'Making
sense of health insurance'(PDF
1.3MB).