The New Zealand government’s new Parent Boost Visa, announced last weekend, is drawing scrutiny from experts over potentially high health insurance costs that could limit access for some families.
Immigration Minister Erica Stanford said the visa will allow parents of citizens and residents to stay in New Zealand for up to five years, with the option to extend it for another five. However, the visa comes with strict health insurance requirements—raising concerns among families and experts alike.
Under the new rules, applicants must obtain health insurance covering at least the first 12 months of their stay. Those planning to stay beyond one year will need to maintain coverage for the full duration of their time in the country. The policy must include emergency healthcare (minimum $250,000 annually), cancer treatment (minimum $100,000), medical repatriation, and return of remains.
For Christchurch resident Xiuyun Liu, whose parents are 70 and 73, the insurance stipulations may be a dealbreaker. Her parents have previously stayed in New Zealand on visitor and study visas to help care for her children.
“Even if they can get insurance now, there will be a day they won’t be able to,” Liu said. “For example, my father has high blood pressure and some other issues. I think getting insurance will be a problem.”
No Existing Products Yet Match Requirements
Professor Paula Lorgelly, a health economist at the University of Auckland, noted that no current insurance products fully meet the government’s criteria. However, she expects insurers will develop new offerings to meet the demand.
“Existing policies for visitors often have exclusions for pre-existing conditions and age limits, which make them affordable—around $2,200 a year for a couple aged 60,” Lorgelly said. “But if cancer coverage is added, the cost will rise significantly.”
Insurance consultant Amy Tao echoed these concerns, noting that while new policies could resemble travel insurance, they would come with added premiums for pre-existing conditions and more robust coverage.
“Underwriting is definitely required,” Tao said. “If they think the risk is too high, they may not offer coverage—even if you’re willing to pay more.”
She cited figures ranging from $1,840 for a couple aged 65 to $2,514 for those aged 70, all with a $100 excess. But any new policies with expanded benefits would cost more, she said.
Insurers Respond to Market Demand
Health insurer NIB New Zealand confirmed it is developing a new product tailored to meet the visa’s criteria. Chief Executive Rob Hennin said the product should launch by September.
“We are already working on a product that aligns with the requirements for this visa,” Hennin said. “While the details are still being finalised, it will be available for purchase for at least one year and provide coverage for the full duration of a client’s stay.”
Kirk Hope, CEO of the Financial Services Council, said the government had consulted with insurers and that the requirements were “reasonable.”
“It’s important that people are insured while they’re here, so that taxpayers don’t carry the cost of emergency healthcare for non-residents,” Hope said.
Lawyers Say Visa Still Attractive—But Insurance Could Be a Barrier
Despite the added financial burden, immigration lawyers believe the Parent Boost Visa remains attractive to many families.
“At face value, it’s not excessively high,” said immigration lawyer Sonny Lam. “Flying back and forth every six months costs more than $3,000. But insurance could be a major obstacle—especially for people over 75.”
Arran Hunt, another immigration lawyer, noted the visa’s eligibility requirements, such as sponsor income levels, are reasonable. But he warned that insurance affordability could exclude some older applicants.
“We expect to see competition in the insurance market, with new policies designed specifically for this visa,” Hunt said. “Still, for many, especially older applicants, covering the cost of insurance could be the hardest part.”
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