The second largest health insurer in the country plans to withdraw a low cost policy just weeks after its launch.

Laya's entry-level cover was designed to attract customers who had never taken out private health insurance before.

According to the Irish Independent, the 'Assure First' plan was regarded as good value, with prices starting at 100 Euro for children.

It was introduced in April, but will be taken off the market on July 1. Laya will also be pushing up the price of its other entry-level plans, as Aviva have already done.

The life-time community rating came into effect on May 1, meaning that over 35s will be penalised if they are buying cover for the first time - two per cent for every year over 35.