 |
| Photo by: Twenty20 |
If there is one subject (besides politics and religion) that I avoid bringing up with a new acquaintance, it is his position towards animals. When their dog contracts a serious illness or injury, some people take it philosophically, thinking that it is an animal and that it is part of the cycle of life. Others, on the other hand, view Fido as a full-fledged family member and would be willing to re-mortgage their home to save their dog’s life.
No matter which side of the argument they are on, pet owners have probably not escaped the overabundance of advertising promoting pet insurance and are probably wondering if this expense, which could amount to thousands of dollars over the lifetime of their pet, is really worth it. After doing some research, the best answer I can give you is… it all depends!
First of all, ask yourself the following questions: Do you see pet insurance as an investment – that is, do you expect to receive more than the premiums you will pay over the lifetime of your pet? Or, do you view it like a car or home insurance policy – you hope nothing serious will happen, but you want protection in case something bad happens?
Here is some basic information that may help you determine if this type of insurance is right for you.
 |
| Photo by: Twenty20 |
Pet insurance has many similarities with the health insurance you buy for yourself: typically, the policy has an annual deductible, a co-insurance amount and exclusions. Note that in some cases, there are restrictions on which veterinarians, clinics and hospitals you can visit.
But there are also many differences. Companies that insure pets may refuse to cover expenses related to a pre-existing condition and may set an annual or lifetime benefit limit. When comparing different insurance plans, you should pay close attention to restrictions, including the following:
- Premiums vary considerably depending on where you live and may increase depending on the age and breed of your pet, rising veterinary costs and other factors.
- Generally, you will be responsible for the cost of any subsequent veterinary consultation or hospitalization for which You will be reimbursed.
- Many insurance plans do not cover congenital or hereditary problems (such as hip dysplasia in dogs or kidney failure in cats) or problems that could have been prevented (such as periodontal disease), or offer limited coverage.
- In addition to annual or lifetime benefit limits, some insurers set limits of coverage that apply per incident (whether an accident or illness).
- If, at some point, your pet develops a disorder of some kind, don’t be surprised if the insurer decides not to cover this condition when you renew your policy or if they charge extra for this coverage.
- It is not uncommon for insurance companies to refuse to insure animals over certain age limits.
- Some breeds may be excluded from coverage or eligible for limited coverage only.
- Some insurance companies offer you the option to include optional coverage for “wellness care”, such as spaying or neutering, annual physical examinations, vaccinations and routine check-ups, as part of your accident and sickness insurance. Make sure that this coverage is worth the additional costs you will have to pay.
- Perhaps the greatest challenge when choosing insurance is to analyze the various options on the market and compare “apples to apples”. Most insurance companies offer a variety of plans, and the terms and conditions (deductibles, maximum insurance and co-insurance amounts, coverage and exclusions) are not the same.
 |
| Photo by: Twenty20 |
You can visit insurance company websites for information on the plans available and to request a quote. You can also use offer compactors – these are independent websites that allow you to make comparisons and get estimates from several insurance companies. I recommend that you create a spreadsheet to look at the benefits and costs side by side, just as you would when shopping for car insurance.
Finally, if you decide not to buy insurance for your pet, at the very least, make sure you put money aside to cover planned and unplanned expenses.