The VHI is scrapping my plan – should I accept the alternative they’ve offered?

Q I am insured with VHI on the Health Access scheme that is being retired. Should I just accept the alternative plan that VHI has offered me? The cover is just for myself.

A Given that your existing plan is being withdrawn, you should review all options across the market before renewing on any new VHI plan, says broker Dermot Goode of TotalHealthCover.ie.

For example, your existing plan was priced at €2,276 per adult and you are likely to be offered the VHI Advanced Care 100 scheme instead, which costs €2,305.

However, if you are happy with semi-private cover in private hospitals, you could consider the Laya Simply Connect Plus at €1,952 per adult, Mr Goode said.

If private accommodation is preferred, you could consider the Simplicity scheme at €2,004, or the Power scheme at €2,079.

All these plans include full cover for major orthopaedic procedures in standard private hospitals.

When engaging with other insurers, always disclose your existing plan details and your specific cover requirements so they can explain exactly how their plans compare to your existing cover.

Q I just renewed my VHI Health Plus Access plan on April 1. Will I be impacted now by the decision to retire this plan from this month?

A The good news for you is that this change won’t affect you until your next renewal in April 2025, said broker Dermot Goode of TotalHealthCover.ie. While VHI has announced the retirement of four popular plans from May 1, this is being introduced on a renewal-date basis. From your next renewal date in 2025 you will have to switch to the alternative VHI plans on offer, or else see what’s available on the wider market.

Q My elderly parents are insured on the VHI Health Plus Extra plan, which is being retired. If I switch them to a different insurer, will they still be covered for their existing medical conditions?

A They will still be covered for their existing medical conditions if they switch, said broker Dermot Goode of TotalHealthCover.ie. The legislation is very protective of consumers as it ensures they get full credit for the 20 years insured with VHI, he said.

Assuming they transfer to an equivalent plan from your renewal date, they will be on cover immediately, subject to the policy terms and conditions.

But the upgrade rule means that if you switch to a higher-level plan with the new insurer, any additional benefits that weren’t available previously may not apply to existing medical conditions for a further two years.

This rule also applies if you switch to a higher-level plan with VHI. It is important that all aspects of the new cover are checked over the phone before making any decision to switch.

If in doubt, engage a qualified adviser that is authorised by the Central Bank, Mr Goode said.

Q I have seen my credit union promoting a secured loan. What is it – and how does it differ from other loans?

A The criteria to qualify for a secured loan with a credit union vary depending on the credit union, as will the interest rates on offer, said James Liston, business development manager at Capital Credit Union.

A secured loan with a credit union is essentially a loan that is secured by your savings. In essence, the more savings you have with a credit union, the greater the amount you can usually borrow. There are a number of advantages to secured loans, including that you keep ownership of your savings.

Having your savings, and continuing to build them up, is a big psychological factor in having control of your finances, Mr Liston said. You also retain any life savings insurance provided by your credit union, and the loan will generally be covered under the credit union’s loan protection cover at no cost to you.

The interest rate on the secured loan will generally be much better than normal loans, reflecting the reduced risk to the credit union, though rates may vary among credit unions.

While secured loans offer financial flexibility, it is crucial to meet your repayments on time to prevent your account from falling into arrears.

This will also safeguard your credit rating from any negative impact that might affect your ability to borrow in the future.