When Would You Need Pet Insurance?
When considering the monthly expense of pet health insurance, many pet owners want to know why they should invest in a plan to cover their family pet. Wouldn’t it be easier to stash those monthly payments in a savings account, just in case a major medical event should arise? While putting money aside is always a good plan, it does not always provide the extended financial cushion that the right insurance program can offer.
Scenario: Your Dog Has Cancer. Now What?
If the day comes when your faithful companion faces the fight of his life against cancer and your savings account sits at just $1,500 (the equivalent of five years of $25 pet health insurance premiums), your money is not going to stretch beyond initial diagnosis and treatments. With a pet health insurance plan, that monthly investment of $25 ensures that you have the money to pay for your dog’s treatment in minor and major illnesses. Filing your claim on your veterinary insurance plan with additional cancer coverage will ensure that a significant portion of what is paid to your veterinary clinic is reimbursed to you. (It is impossible to give exact figures in this instance since the type of cancer, location of cancer, age of the dog and treatment plans all affect the total cost of the bill, just like it does for humans.)
How Does Pet Insurance Work
In the United States the majority of pet health insurance plans work by having you, the pet owner, pay the veterinary fees upfront for your pet’s treatment. After paying the initial cost of your pet’s vet visit, request a duplicate, itemized receipt which you then send in to your pet’s insurance company along with a completed claim’s form. Depending upon the company and their backlog of paperwork, claims are usually processed within a month and a reimbursement check is sent back to you (some companies (our top three all do) guarantee a certain turnaround time on payout as an added benefit). The amount of your reimbursement is dependent upon your pet insurance policy details and exclusions, the type of procedure performed, the cost of that procedure, the allowance per procedure on your policy and your plan’s deductible. And, if you have more than one pet, do not forget to ask for a multi-pet discount — many companies offer this savings.
Before you Buy, Find Out What’s Covered for YOUR Pet
Once you have narrowed down your choices with our pros and cons list below, be sure to apply for a quote with each of the companies you are considering for pet insurance. Then, have your vet send in each of your pets records to the company that you are considering. A company who is truly interested in your business will diligently review your pet’s records and clearly outline any conditions that will be excluded from your pet’s health insurance plan. They may also be able to help you with any riders or add-ons that may be needed to cover higher risk items for your specific dog/cat or breed. This will help you to make the best decision by knowing precisely what they consider pre-existing for your pet so you won’t have to worry about it as you go for appointments and treatments in the future underneath your chosen plan. Note: No insurance company covers pre-existing conditions, but different ones may have different decisions on what they consider to be a pre-existing condition. Taking this extra step may seem like an unnecessary precaution now but when an emergency arises, you will be glad you asked all the questions upfront to be sure you were choosing the right policy for your family.
Wellness vs. Illness vs. Accident Coverage
When you think about car insurance, it covers you in the case of an accident only. You would never expect your car insurance to pay for your regular oil changes and tire rotations. And if your insurance did cover those maintenance costs, you would expect to pay more per month. Well, your pet insurance is no different; they also draw distinctions in coverage in similar ways. When shopping for a plan, make sure you are happy with both components: cost and right amount of coverage.
Accident Pet Insurance Coverage
Accident coverage is the most common and universally offered type of pet insurance. An example would be if your pet were unexpectedly hit by a car and rushed to the vet for surgery on a broken leg, this would fall under accident coverage with your pet health insurance company. So rather than shelling out $2,300 for an x-ray, diagnostic tests, surgery and medication, it would be covered by your insurance plan for which you had been paying monthly in case of such an accident. It would be impossible to have planned for this sort of accident during your monthly budgeting which is why having accident coverage would be crucial for helping you get through this difficult time — financially and maybe even emotionally — as it would reduce the stress. Every pet health insurance company offers accident coverage, no matter the age of your pet.
Illness Pet Insurance Coverage
Illness coverage is often restricted and/or becomes more expensive with age as the risk of illness goes up exponentially as your animal ages. So it is best to seek out pet insurance at the youngest age possible for your pet to reduce pre-existing condition risks and also to reduce the monthly cost. Some companies will even lock in the monthly price that you pay for coverage when you start your policy through the life of your dog. Sure it might cost a little more, but if your dog lives to be 15 years old, it will likely be worth it to invest in insurance for your pet now. Currently, the average age for enrollment is just under three years of age so we recommend you get started finding the right fit for your pet immediately. The illness aspect of insurance coverage is where you can really benefit over the lifetime of your pet’s policy.
Wellness Pet Insurance Coverage
Back to the car insurance analogy, why pay more every month to cover something that you can plan for (e.g. oil change or annual vet exam)? If you know the cost for your annual wellness exam at the vet will be $120, you can just set aside money in your savings account for that (put away $10 a month and you will be set!) so why give that money to someone else when you can at least earn a little interest on it in the bank? Wellness coverage is more subjective than illness or accident coverage. Illnesses and accidents — the emergency-type things you cannot plan for that effect your pets — are what you need to insure to make sure you can cover them financially when they arise, whereas wellness coverage really depends on you, and whether you’d rather save for those known annual expenses, or whether you’d rather have wellness insured so you don’t have think about coming up with the extra cash when the times comes.