# Health insurance renewal,13 week break?



## toby2111 (11 Jun 2014)

My health insurance is up end of July.I know if I dont renew within 13 weeks if renewal date, I start as a new customer. Can I just renew say 12 and a half weeks after renewal date and renew then?That way saving 3 months insurance?Or do they back date it?


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## Padraig Mor (11 Jun 2014)

Yes - or so I thought. I've just had a barney with VHI within the last hour over this. I have a plan finishing its 12 month contract this week. Because VHI are doing half price kids from July 1st, I decided to have a two week break in cover before renewing on July 1st, with my kids now at half price. They refused! They cancelled my policy OK but said that they will not sell me the new policy on July 1st. If I try to join on July 1st, they maintain my only options are to either (1) renew my old policy from its original renewal date, i.e. paying full price for the kids AND backpaying the 2 weeks without cover or (2) take out a policy as a 'brand new' customer, having to serve the full waiting periods even though the break in cover is less than 13 weeks. Bizarrely, they repeatedly claimed that this was "to protect the 12 month contract", even though I would have completed a 12 month contract, and would be taking out a new one. I believe this is completely incorrect and have contacted the HIA. 

You can definitely move companies in the 13 weeks though.

Separately, they're having a laugh with their direct debits. Even though my next payment (if I was renewing my policy without a break) isn't due until the 15th, they've already requested it from my bank since the 1st!


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## Brendan Burgess (11 Jun 2014)

This has been discussed before and it seems that VHI does force you to backdate cover 

http://www.askaboutmoney.com/showthread.php?p=1269276

I can see their point. I imagine that a lot of people don't renew on time. They let it slip a few weeks, and then pay the premium.

If they get sick in the meantime, they would claim that they were insured, just that they had not paid. 

With most insurance policies, if someone renews late, and is accepted the cover continues from the renewal date. 


> Because VHI are doing half price kids from July 1st, I decided to have a  two week break in cover before renewing on July 1st, with my kids now  at half price.



This is another example of companies offering their new customers better deals than their existing customers

Brendan


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## Padraig Mor (11 Jun 2014)

Thanks for that. Is it not illegal though? Have mailed the HIA earlier, so will hopefully know soon! Even if legal, surely it's poor business practice - (1) they have no liability for the period without cover so what does it matter to them?, (2) if they force me to switch to another company, they're down a few grand a year in premia they really could do with (and us with an almost zero record of claims), (3) it turns their customers against them - I'm so annoyed with them right now I'd nearly go to another company just to spite them!


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## toby2111 (11 Jun 2014)

But surely,If I decide not to renew,I'm then without insurance for the 12 and a half weeks so I'm not covered by anyone,therefore I can't claim anything.

I'm with Laya at the moment but was hoping to save 3 months or so premium by stalling. But it seems I have to switch company to avail of this?


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## Nige (11 Jun 2014)

would taking the policy out in your spouse's name work?

I know we've used the 12 week period to our advantage in the past but I can't recall if we changed provider (though I do know that we changed the main policyholder at some point).


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## Padraig Mor (12 Jun 2014)

OK, heard back from the HIA. VHI are technically correct. They are "taking advantage of some bad wording in the legislation" according to the HSA (legislation refers to 'another provider' when discussing the 13 week grace period) - so they are obeying the letter, but not the spirit of the law. They will also force you to stay on your old plan if you do not change within 14 days of the original renewal date. Very anti-customer service by VHI. Note that VHI are apparently the only ones doing this - the other companies do not apply such restrictions in practice.


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## Jim2007 (12 Jun 2014)

Padraig Mor said:


> OK, heard back from the HIA. VHI are technically correct. They are "taking advantage of some bad wording in the legislation" according to the HSA (legislation refers to 'another provider' when discussing the 13 week grace period) - so they are obeying the letter, but not the spirit of the law. They will also force you to stay on your old plan if you do not change within 14 days of the original renewal date. Very anti-customer service by VHI. Note that VHI are apparently the only ones doing this - the other companies do not apply such restrictions in practice.



Tell me are you expecting that you are covered during those 13 weeks?  Because if you are then in my books, they are absolutely correct in charging you for that period if you decide to renew your policy, otherwise they should be treating you as a new customer.


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## Padraig Mor (12 Jun 2014)

Jim2007 said:


> Tell me are you expecting that you are covered during those 13 weeks?  Because if you are then in my books, they are absolutely correct in charging you for that period if you decide to renew your policy, otherwise they should be treating you as a new customer.



Try reading my earlier posts. Of course I don't expect to be covered in those two weeks.


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## Brendan Burgess (12 Jun 2014)

Padraig Mor said:


> Try reading my earlier posts. Of course I don't expect to be covered in those two weeks.



I think it was a fair question.  It's not clear how Nige used the 12 week period to his advantage in the following 



Nige said:


> I know we've used the 12 week period to our advantage in the past but I can't recall if we changed provider (though I do know that we changed the main policyholder at some point).




If you think that health insurance is a good idea, I am not sure why you would take the risk of being without it for 12 weeks.  One reason why some people might do it is in the hope of having it backdated if they got ill.


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## Padraig Mor (12 Jun 2014)

Brendan Burgess said:


> I think it was a fair question.  It's not clear how Nige used the 12 week period to his advantage in the following



Apologies, thought he was referring to me.


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## Jim2007 (12 Jun 2014)

Padraig Mor said:


> Try reading my earlier posts. Of course I don't expect to be covered in those two weeks.



Sorry I confused you with the original OP.

But none the less, you are either a customer or you are not - if you choose not to continue cover regardless of the period, you have to terminated the contract and consequently you are not a customer.

If it were me, I try and see if they will not give you some kind of discount in recognition of your customer loyalty and the fact that you are so close to the deadline rather than looking for the exact offer that is coming up.  It is very easy for them to say No on you not meeting the exact criteria, but perhaps there is something else they could do in stead.  Worth a try - all they can do is say no.


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## Padraig Mor (12 Jun 2014)

Jim2007 said:


> Sorry I confused you with the original OP.
> 
> But none the less, you are either a customer or you are not - if you choose not to continue cover regardless of the period, you have to terminated the contract and consequently you are not a customer.


My point exactly. I don't want to be a customer for a few weeks, but they won't let me!



> If it were me, I try and see if they will not give you some kind of discount in recognition of your customer loyalty and the fact that you are so close to the deadline rather than looking for the exact offer that is coming up.  It is very easy for them to say No on you not meeting the exact criteria, but perhaps there is something else they could do in stead.  Worth a try - all they can do is say no.


Insurers are legally prevented from offering discounts to specific customers. Everyone pays the same price for the same package.


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## Jim2007 (12 Jun 2014)

Padraig Mor said:


> My point exactly. I don't want to be a customer for a few weeks, but they won't let me!



Well if you terminate the contract according to whatever rules are set out in the contract I don't see how they can refuse to terminate the contract...  Mind you starting out as a new customer would mean the usually waiting period and so on... but that would be your choice.


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## Nige (16 Jun 2014)

the waiting period for cover does not apply if you have been without cover for less than 13 weeks.

Someone asked what I achieved by going 12 weeks without cover - the answer is a significant saving.  Yes, we were without cover for that period but, like most young families, we are healthy.  We were quite confident that no significant health issues would arise in those 3 months that were not emergency cases (but we have cover as we aren't confident that issues won't arise over the next few years).


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## Brendan Burgess (16 Jun 2014)

Hi Nige

If it's good value for 12 months, it's good value for 3 months. 

If you are young and healthy, you would be better off saving your health insurance premium into a fund to pay for health expenses as they arise. 

Brendan


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## Sophrosyne (16 Jun 2014)

*Irish Times aticle- Would people be better off without health insurance?*


“In conclusion then, there is no easy answer as to whether building up a nest-egg to cover medical expenses rather than paying out handsomely for health insurance is a sensible approach.”


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