The introduction of New Zealand’s Parent Boost Visa is prompting insurers and migrant families to navigate new territory regarding health insurance coverage and costs.
The visa, which opens for applications on Sept. 29, enables parents of New Zealand citizens and residents to visit for up to five years, with the option to renew for another five years.
However, the mandatory insurance requirements have become a focal point for both industry stakeholders and applicants.
To qualify, parents must secure health insurance that provides at least $250,000 in annual emergency healthcare coverage, includes medical repatriation, return of remains, and a minimum of $100,000 for cancer treatment. The policy must be valid for a minimum of one year and maintained throughout the duration of the stay.
The cost of meeting these insurance requirements has become a significant concern for many families.
Insurance provider nib, through its OrbitProtect brand, has introduced a policy specifically for Parent Boost Visa applicants.
Premiums for this product start at $3,900 per year for those aged 50 to 59, rising to $6,000 for ages 60 to 69, $9,600 for ages 70 to 79, and $14,000 for those aged 80 and above.
The policy is designed to address unexpected and emergency medical needs but excludes coverage for pre-existing conditions, general practitioner visits, medications, laboratory tests, certain surgeries, and long-term care.
Additional premiums and a processing fee apply for limited coverage of some pre-existing conditions. The policy can be purchased for up to 18 months at a time, subject to approval.
Insurance consultant Amy Tao noted that the cost is substantially higher than standard travel insurance.
“It’s much more expensive than travel insurance,” she said, as reported by RNZ. “I think most families would struggle to afford it. But it seems that if you want to apply for this visa, you’d have to purchase such an insurance.”
For many families, the insurance requirement represents a significant financial hurdle.
Wellington resident Prem Khanal, seeking to bring his 75-year-old father from Nepal, calculated the cost of insurance at $9,600 per year, amounting to nearly $50,000 over five years.
“I cannot afford it,” he told RNZ. “That figure also only provides basic cover to meet the government’s requirements, and we might need to spend more for comprehensive cover.”
Christchurch resident Xiuyun Liu estimated that insuring her parents, aged 70 and 73, would cost nearly $20,000 annually. Factoring in visa application fees and possible advisory costs, Liu projected expenses exceeding $60,000 over three years.
“We dare not quit our jobs, take a break or take the career risks that others can,” Liu said, citing the need to meet income thresholds for sponsorship.
Insurers are evaluating how to respond to the new requirements. Jess Strange, chief customer officer at Southern Cross Travel, said the company is in discussions with the Ministry of Business, Innovation and Employment about potential offerings for families under the Parent Boost Visa.
“It’s important to get this right to ensure we can support customers and their whānau appropriately,” Strange said, as reported by RNZ.
AIA New Zealand has indicated no current plans to launch a product for this visa.
Industry experts have observed that existing travel insurance products often exclude older age groups and pre-existing medical conditions.
Paula Lorgelly, health economist at the University of Auckland, said that insurers may need to adjust underwriting practices for the older demographic targeted by the visa.
“Currently a number of insurers have a visiting New Zealand policy to provide cover for a range of travel and medical related claims,” Lorgelly told RNZ, noting that average premiums for a couple aged 60 are around $2,200 per year, but these do not include comprehensive cancer cover.
Insurance consultant Amy Tao added that premiums will depend on age and health history, and that new requirements such as mandatory cancer coverage are likely to increase costs.
Immigration lawyers have also highlighted challenges for applicants over 75, who are often excluded from standard travel insurance.
Kirk Hope, chief executive of the Financial Services Council, confirmed that the government consulted with insurers before finalising the Parent Boost Visa policy.
“I think it’s reasonable given what the costs of the taxpayer would be if someone didn’t have insurance and had to rely on the taxpayers,” he said, adding that the private sector is expected to play a key role in supporting the policy.
The Parent Boost Visa is part of the government’s strategy to attract skilled migrants and support family reunification, while managing public service costs.
Eligibility criteria include sponsorship by a New Zealand citizen or resident, meeting health and character standards, and demonstrating sufficient income or funds.
After three years, parents must complete a new medical assessment and show continued insurance coverage to maintain their visa status.
Immigration Minister Erica Stanford said the policy aims to balance the needs of migrant families with sustainable public service provision.
“We are committed to delivering an efficient and predictable immigration system that drives economic growth to take New Zealand forward,” she said.
