What’s the best way for me to switch health insurance?

Q I have just reached 50 and want to switch to upgrade my health insurance plan. But do I have to serve a waiting period for cover when I switch? Doesn’t this take away the whole point of switching? I have no preexisting conditions.

A You’re right to upgrade your cover as you get older as you’re far more likely to use it, post-50 and may face age-related penalties for doing so any later. Here’s how it works: There are waiting periods if you switch to a plan with higher benefits but only in relation to those extra benefits, and usually only for pre-existing conditions.

Most insurers apply waiting periods on upgraded benefits of up to two years for pre-existing conditions.

That makes sense, as otherwise, everyone who got ill would ramp up their cover to take full advantage.

However, applying waiting periods for new conditions is a controversial issue.

Recently there have been some surprising developments in this area.

The VHI used to get a lot of flak for being out of line in applying these waiting periods for new conditions.

So last May it removed the ‘new condition’ upgrade rule. Customers who upgrade are now entitled to higher cover immediately for new conditions.

However, no sooner, had VHI ‘levelled the playing field’ than GloHealth introduced waiting periods for new conditions on upgrading! These are: 26 weeks for under 55 years of age One year for 55-64 years Two years for 65+ years. Health insurance expert Dermot Goode of tthe website totalhealthcover.ie said waiting periods for new conditions are a big disincentive to switching or improving your cover.

He explained: ‘You could be in perfect health and switch from a plan with an excess of €250 to one with a €100 excess.

‘Two weeks later, you develop pneumonia or cellulitis and the €250 excess will still apply.’

Or you may upgrade to private cover at 65 but be unable to attend the Mater Private for a heart complaint for two years after.

Mr Goode said he is ‘surprised’ GloHealth is doing this as it is ‘out of sync’ with the market. ‘It’s unfair and just creates more confusion,’ he said.

QI am confused about bin charges. I’ve heard nothing from my waste company, which apparently wasn’t involved in the Irish Waste Management Association (IWMA, which made a recent deal with Environment Minister Simon Coveney to freeze charges).

AMost waste companies have agreed to freeze charges until the end of June 2017.

The IWMA represents around seven out of 10 bin companies. But at least two big non-members – City Bin Company and Greyhound – have also said they will support the new measures.

What’s proposed is a dual billing process with details of costs under the current price plan (which you should continue to pay) and what would have been paid under the comparative pay-by-weight charge.

It seems that Mr Coveney’s threat to regulate industry pricing may be enough to stave off the hike in charges.

And claims that the bin companies were trying to ‘pull a fast one’ with big increases should be proven or otherwise over the coming months.

QAre there life insurance policies that pay out when you become terminally ill?

AThis is a feature on many policies. In order to pay out, the typical policy would require diagnosis of a terminal illness with a foreseen lifespan of no more than 12 months, which doesn’t always happen.

But, if approved, ‘the upfront payment of death benefit allows people to put their affairs in order and can be of great comfort’, said John Geraghty of Labrokers.ie.

Most life policies also cover their children from three months up to 21. For an extra payment, specified illness and cancer cover can be added to your life policy. These pay out as soon as a named serious illness is diagnosed.