New Zealand’s Parent Visa Faces Insurance Hurdles
Visa hopes tempered by rising healthcare costs for sponsoring families
A newly announced visa aimed at reuniting families in New Zealand is already facing scrutiny, as potential applicants grapple with stringent health insurance requirements and escalating costs. The Parent Boost Visa, intended to allow parents of citizens and residents to stay for up to five years, may prove inaccessible for some due to financial barriers.
Insurance Costs Raise Concerns
The government mandates that parents applying for the visa secure health insurance covering at least $250,000 annually for emergency care, $100,000 for cancer treatment, medical repatriation, and return of remains. Xiuyun Liu, a Christchurch resident, expressed worry about affording coverage for her parents, aged 70 and 73, who currently assist with childcare. “But what if I can’t get insurance for my parents? Even if they can get insurance there will be a day they won’t be able to,”
she said.
Experts suggest current insurance options may fall short of the visa’s requirements. Paula Lorgelly, a professor of health economics at the University of Auckland, noted that many policies have age limits and exclude pre-existing conditions. “Currently a number of insurers have a visiting New Zealand policy…These do have considerable exclusions with respect to pre-existing conditions,”
she explained. According to a 2023 report by the Insurance Council of New Zealand, the average cost of comprehensive health insurance for a 70-year-old can exceed $5,000 annually. Insurance Council of New Zealand
Market Response and Government Stance
Health insurance provider NIB has announced plans to launch a product tailored to the visa’s criteria by September, according to New Zealand chief executive Rob Hennin. However, costing details remain unclear. The government defends the insurance requirement as a means of protecting New Zealand’s publicly funded healthcare system. “We’re striking the balance of making sure that … these folks who are not taxpayers, haven’t contributed to our publicly funded healthcare system, won’t be eligible for those services,”
stated Prime Minister Christopher Luxon.
Visa Costs and Legal Perspectives
Beyond insurance, the Parent Boost Visa carries a $3000 application fee (reduced to $2450 for Pacific applicants), plus additional levies and health check costs. Despite these expenses, immigration lawyer Sonny Lam believes the visa will remain attractive, as frequent travel between countries is often more costly. However, he acknowledges the insurance hurdle could be significant, particularly for older applicants. Arran Hunt, another immigration lawyer, anticipates increased competition in the insurance market, with policies specifically designed to meet the visa’s criteria.
Parent Boost Visa Costs
- Visa application fee: $3000 ($2450 for Pacific applicants)
- International Visitor Conservation and Tourism Levy: $100
- Additional processing fee for the third-year health check: $325 ($240 for Pacific applicants)
- Health check fees: About $300-500 per person
- Health insurance costs
The viability of the Parent Boost Visa hinges on the availability of affordable and comprehensive health insurance options, leaving many families in a state of uncertainty as they await further details from insurance providers.
