We all love a good deal — whether it’s finding that special on your favourite coffee beans or scoring discounted flights for your next holiday. But when it comes to insurance, cheaper isn’t always better.
In recent years, we’ve seen new insurance products hit the market that look great on paper — lower premiums, flashy marketing, and simplified options. But here’s the catch: some of these cheaper policies come with watered-down policy wordings, which can mean less cover when you actually need it most.
What does “watered down” really mean?
Some insurers reduce costs by limiting what’s covered, tightening claim definitions, or removing certain benefits altogether. That might not seem like a big deal when you’re just looking at the monthly premium — but fast forward to claim time, and those small differences can have a big impact.
For example:
A cheaper trauma cover might exclude more conditions.
Some health insurance policy's don't have guaranteed policy wordings, meaning the insurer can take away key benefits at any time in the future.
A basic income protection plan might have longer waiting periods or lower benefit payments. Taxed or not taxed and with ACC offsets.
A new life insurance policy could have fewer built-in benefits, like funeral advancement payments or premium waivers.
In short, you might save a few dollars now, but risk thousands in missed benefits later.
Check before you make a change
If you’re tempted by a cheaper policy or thinking about switching insurers, it’s important to check with us first. At NZ Advice Group, we have access to a wide range of insurers and can help you compare not just prices, but the actual value of the cover.
We’ll look at:
✅ What’s included (and what’s missing) in each policy
✅ The financial strength and claim reputation of each insurer
✅ How the policy fits with your goals — whether that’s saving money, getting better protection, or both
Because the truth is, the “best” policy isn’t always the cheapest one — it’s the one that works when life throws you a curveball.
We’re here to help
Before you make any changes, get in touch with NZ Advice Group. We’ll review your cover, explain the differences clearly, and make sure you’re protected with a policy that suits your needs, not just your budget.
💬 Book a free insurance review today — we’ll help you find the right balance between cost and confidence.