Alarm Over Health Insurance Costs for Parent Boost Visa

Migrant families are raising concerns about the high cost of health insurance required for the new Parent Boost Visa, which opens for applications on Monday. The visa allows parents of New Zealand citizens and residents to stay in the country for up to five years, with a potential extension for another five years. However, the visa includes strict health insurance requirements: policies must cover emergency healthcare (minimum $250,000 annually), medical repatriation, return of remains, and cancer treatment (minimum $10,000 annually), and must be maintained for the full duration of the stay.
Insurance provider nib, through its OrbitProtect brand, has launched a policy targeting parents. Annual premiums are $3,900 for those aged 50–59, $6,000 for 60–69, $9,600 for 70–79, and $14,000 for those aged 80 and over. The policy does not cover pre-existing conditions, general practitioner services, medications, laboratory tests, joint or spinal surgery, or long-term care such as rest home or hospital-level care. Additional premiums are required for coverage of some pre-existing conditions, along with a $45 processing fee. The policy can be purchased for a maximum of 18 months, with applicants needing prior approval.
Insurance consultant Amy Tao said the cost is significantly higher than travel insurance and that most families would struggle to afford it. She noted that new illnesses during the policy period could affect future eligibility for Orbit insurance.
Wellington resident Prem Khanal, whose father is 75 and lives alone in Nepal, described the insurance as a 'rip-off'. After three years of applying for residency for his father, Khanal said he cannot afford the $9,600 annual premium for the first year, which would total nearly $50,000 for five years. He also believes the visa is designed for wealthier families, saying, 'It just feels like the Parent Boost Visa has been introduced for rich people.'
Christchurch resident Xiuyun Liu, whose parents are 70 and 73, said her family would need nearly $20,000 annually for insurance. Adding the $3,000 visa application fee and potential immigration advisor costs, she estimates total expenses over three years to exceed $60,000. Liu said she has been applying for her parents' residency but has not yet received approval. To sponsor their applications, she must maintain a high income, which means she cannot take breaks or career risks. She expressed deep hopelessness, saying, 'There is no light at the end of the tunnel. Most of the time I just work without thinking.'
Jess Strange, chief customer officer at Southern Cross Travel, said her company is discussing with the Ministry of Business, Innovation and Employment ways to support applicants under the visa. She emphasized the importance of offering appropriate options to ensure families are supported.
AIA New Zealand has no current plans to offer a product for this visa. RNZ has contacted several insurers in China, all of which reported that no products currently meet the full requirements. An Indian provider is working on a more affordable option.
Immigration Minister Erica Stanford explained that health insurance is a key part of the visa design, citing examples from Canada and Australia. She said it ensures applicants and sponsors are not left with large debts due to healthcare costs, as parents are not eligible for publicly funded healthcare. The visa allows applicants to consider both domestic and international insurance from reputable insurers with strong credit ratings, with prices determined by market conditions.
Critics argue that the high insurance costs may exclude many migrant families, particularly those with lower incomes or limited financial resources, making the visa accessible only to wealthier individuals.