Choosing health insurance for your family is one of the most important financial decisions you'll make. Here's how to get the right cover for your family's specific situation.
What Family Health Insurance Covers
Family health insurance works the same as individual cover — it's simply a policy (or set of policies) that covers multiple family members. Most insurers offer:
- Family/group discounts (5–15% off combined premiums)
- Free or heavily discounted cover for children under 5
- Discounted rates for children up to age 21
What Cover Do Families Actually Need?
Essential — Hospital and Surgical Cover: Planned surgery and hospital stays. This is the core cover every family member should have.
Consider — Specialists and Diagnostics: Fast access to private specialists and diagnostic tests. Particularly valuable when children or teenagers develop conditions requiring specialist input.
Consider — Cancer Cover: Given the rates of cancer in NZ, having non-Pharmac drug coverage is increasingly important.
Optional — Day-to-Day Cover: GP rebates, prescriptions, dental, optical. These benefits can be valuable for families with high healthcare utilisation.
Family Premium Examples (2026)
Two adults (35 + 33) + two children, $500 excess, hospital cover: - Southern Cross: ~$280/month - nib: ~$245/month - AIA: ~$260/month
Adding comprehensive cover (specialists + cancer): - Southern Cross: ~$380/month - nib: ~$330/month - AIA: ~$355/month
Tips for Reducing Family Premiums
1. Higher excess: A $1,000 family excess vs $250 can save $80–$120/month 2. Hospital only for children: Children rarely need comprehensive cover; hospital + specialists is often sufficient 3. AIA Vitality: Earn premium discounts through active living 4. Annual payment: Save 5–8% vs monthly payments 5. Review regularly: Needs change as children grow