$500k health claims unlikely for now

The insurer has launched the new Real Health product, which introduces the new half-a-million-dollar limit on surgical and non-surgical treatments, including new generation, non-Pharmac treatments for cancer.

Claire Matthews, of Massey University, said AIA would likely only have to pay out to the $500,000 level for a very small number of people.  “They can offer it because the number that is going to that limit isn’t huge.”

She said a key factor in the product's success would be the affordability of premiums. New Zealanders are hesitant about taking out medical insurance anyway, so may need even more convincing to take out a product that covers something so rare.

AIA said a non-smoking 40-year-old female with a base plan and $500 excess would pay a total premium of $66.89 a month.