Cheapest vs Best Health Insurance NZ 2025

Understand the real differences between budget and premium health insurance, and find the right balance for your needs and budget.

Last updated: 23 January 2025Pricing comparisons updated monthly

Quick Answer

Cheapest health insurance starts from $25-40/month (Partners Life, Accuro basic plans) but offers limited coverage (typically $250k hospital cover, restricted specialists). Best health insurance costs $80-150/month (Southern Cross comprehensive plans) with $500k-$1M+ coverage, wider provider networks, and fewer restrictions. The "best" choice depends on your health needs, age, and budget - young healthy individuals may be fine with budget plans, while families or those with health concerns benefit from comprehensive coverage.

Key Differences at a Glance

Cheapest Plans

Price Range:

$25-50/month

Hospital Cover:

$150k - $300k

Provider Network:

Limited (500-800 providers)

Waiting Periods:

12 months (pre-existing)

Typical Providers:

Partners Life, Accuro, Fidelity Life

Best Plans

Price Range:

$80-150/month

Hospital Cover:

$500k - $1M+

Provider Network:

Extensive (2,000-2,800 providers)

Waiting Periods:

6-12 months (shorter for some)

Typical Providers:

Southern Cross, nib, AIA

Feature-by-Feature Comparison

FeatureCheapest PlansBest Plans
Surgical Cover$150k-250k$500k-1M+
Specialist Restrictions
GP Visits Covered
Dental CoverageOptional Extra
Optical CoverageOptional Extra
Physiotherapy
Cancer TreatmentBasic ($30-50k)Comprehensive ($100k+)
Cardiac CoverBasic ($50k)Comprehensive ($100k+)
MaternityOften Included
Mental Health SupportLimitedComprehensive

Who Should Choose Which Option?

Choose Cheapest If You're:

  • Under 30 years old and healthy
  • On a tight budget (student, first-time buyer)
  • Just wanting basic emergency cover
  • Rarely visit doctors or specialists
  • No family history of major health issues
  • Happy with longer wait times

Choose Best If You're:

  • Over 40 or have health concerns
  • Have a family to protect
  • Want comprehensive peace of mind
  • Frequently visit specialists
  • Have pre-existing conditions
  • Want widest provider choice

The Middle Ground: Best Value Plans

Don't want the cheapest OR the most expensive? Consider these "best value" options that balance price and coverage:

nib Essential Health

$70-100/mo

Good hospital cover ($400k) with fast claims and wellness benefits

AIA Essential Plus

$75-110/mo

Solid coverage ($350k) with good specialist access and maternity

Accuro HealthReady Plus

$65-95/mo

Decent coverage ($300k) with no age limits and good cancer cover

Important: Read the Fine Print

Budget plans often have exclusions that aren't obvious. Common surprises include:

  • No cover for gynecology, urology, or orthopedics
  • Pre-approval required for most procedures
  • Limited or no access to private hospitals
  • Co-payments of 10-20% on some treatments
  • Maximum annual claim limits (often $50k-100k)

Real Cost Example: Hip Replacement

A typical hip replacement in NZ costs $25,000-35,000 privately. Here's how different plans compare:

Cheapest Plan

$5,000-10,000

Out of pocket due to specialist restrictions and co-pays

Mid-Tier Plan

$1,000-3,000

Covered but with excess and some co-pay

Best Plan

$500-1,000

Fully covered minus your excess

Find Your Perfect Balance

Compare plans side-by-side and get personalized quotes to find the best value for your situation.