September 10

3 Reasons why you can’t afford NOT to have Private Health Insurance

Health Insurance, Insurance


by Johan du Toit – Financial Adviser –

We asked our in-house Financial Adviser and business  adviser, Johan du Toit, to give you his 3 simple reasons why you can’t afford NOT to have Private Health Insurance


1 – TIME

When you are diagnosed with an illness, time is not necessarily in your favour. In the public system, you are likely to be put on a waiting list for not only surgery (if required) but also specialist appointments and diagnostic testing which could lead to a delay in diagnosis. In the time spent waiting, your illness has the potential to worsen, spread, become more aggressive, or even become untreatable.

If you have injured yourself and you are unable to work, you want your recovery to go as quickly as possible so you can return to work and normal day to day living at full capacity.

Surgeries, including elective surgeries, all have waiting lists. This means your surgery may be delayed for weeks, months or even years. This prolongs your recovery period but also means your life may be ‘on pause’ for quite some time. You may be on reduced hours at work, resulting in reduced income, or you may not be able to work at all. If you are the sole income earner in your household, would you be able to afford this time delay?


2 – COST

With New Zealand’s public health system, you may be wondering, why do I need to pay for Health Insurance, if I can access free medical care? If time is not on your side or you simply cannot afford to wait, you will need to pay for Private Medical treatment.

To pay for treatment, you may need to dip into your hard-earned savings, sell your assets or in some cases, even make debt to cover your bills.

Below is a list of common surgeries and what they cost (in New Zealand Dollars) if they were to be performed in a Private Medical facility*.


> Coronary Angiography $4,700 – $24,000

> Prostate Surgery $9,300 – $20,100

> Hysterectomy $14,300 – $28,600

> Hip Replacement $22,100 – $27,200

> Skin Lesion Excision $300 – $2,400

*Source: Southern Cross Health Society claims data 2018/19. Healthcare services listed are based on those most commonly claimed by volume, excluding day-to-day healthcare services (e.g., prescriptions, GP). Costs are indicative only and based on a range of average claim costs. Procedure costs will vary depending on the location, medical practitioners, complications, and the medical procedure and technology used. In some cases, the listed procedures have been described in general rather than clinical terms.

Is the risk worth it?
There are options to make your Medical Insurance more affordable for your family. You can choose an excess which suits your budget or add/remove additional benefits. So, you decide what is more affordable, a monthly premium which can be customised to suit your needs or forking out tens of thousands of dollars for 1 procedure.



Having Private Health Insurance provides you with the freedom of choice. You are given access to a wider range of treatment options, hospitals, and medical specialists. You will have access to specialists across the country and always have the option for a ‘second opinion’ from the best of the best.

Some Private Health Insurances have the option for Overseas treatment. Claims on treatment overseas can be paid in full or a partial payment can be offered if you choose to travel overseas for medical treatment. This provides you with even more choice and freedom as to how you choose to treat your medical condition.


TIME, COST & CHOICE. These are my 3 simple reasons why you can’t afford NOT to have Private Health Insurance. Remember, Insurance is about protecting your most valuable assets, so let’s start with insuring the most valuable- your health.

To discuss how we can assist you with your personal health insurance, as well as other personal insurance needs,  please get in touch with one of our friendly Financial Advisers!

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