Is pet health insurance worth the investment? I have two sweet semi-siamese kitties that I adore and want to keep safe and healthy without breaking the bank.
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Hi LucastaLovelace, First, disclaimer: I work for Embrace Pet Insurance in Cleveland, Ohio. I'm glad you're asking questions about pet health insurance. There is so much information floating around about it and not all of it is correct. Indeed a sick kitty can cost a fortune to make healthy again. Even so, we see a much higher percentage of dog owners than cat owners taking out pet insurance. Perhaps this stems from the perception that dogs are more active and thus more likely to need it, I'm still not sure. I want to address one question you asked which was "Is pet health insurance worth the investment?" Well, actually, no insurance product is ever an investment. Insurance simply transfers your risk to someone else in exchange for you paying the premium. Health, auto, pet insurance is all the same in this regard. You pay a premium, someone else takes the financial risk off your hands. I say this because many pet owners want pet insurance to act like human health insurance, right down to the idea that it should cover even visits to your veterinarian and routine vaccinations. The problem is that insurance doesn't work as well when it covers myriad small, inexpensive, routine procedures. By doesn't work as well I mean "is more expensive". It can certainly help from a budgeting point of view to have the whole kitchen sink included but it certainly won't make your pet insurance any more affordable. So, what makes a good pet health insurance policy? My opinion is straightforward: insurance is a promise to reimburse you so one of the main elements of a good policy is full and open disclosure of *everything* that is and is not covered. If you look just at price you are not getting the whole picture. You're very lucky in that nowadays here in the US you have a choice of at least half a dozen different pet insurance companies, just go to Google and type in "pet insurance." Here are some questions you should ask yourself as you navigate the different plans on the market: 1. Does the pet insurance company give you a choice of deductibles, maximums, and copays to design a plan to suit your budget? 2. Does the plan cover genetic conditions? Make sure their answer is unambiguous because some claim they cover them but there can be "gotchas." 3. Does the plan cover chronic or recurring conditions? So if your pet gets sick in year 1, does it cover the same illness again in year 2? 4. Does the plan come loaded with coverages that you'll pay for but probably never use, like "Lost & Found" or "Accidental Death"? 5. What is and is not covered? Is it clearly stated on their website or over the phone? 6. Does the plan pay claims based on a restrictive benefit schedule or the actual vet bill? You want to avoid benefit schedule plans because they have a high probability of leaving you substantially out of pocket when you make a claim. 7. Are there per-incident or per-body system limits that effectively cap the amount you could receive back? For example, some plans have a $3,000 per-incident limit. If you had a claim for $5,000 with one of these plans then the most you would get back would be $3,000 - ever. 8. How long does the company take to pay claims? 9. What are the rules around pre-existing conditions? Are they excluded permanently or temporarily? Buying a pet insurance plan requires a little bit of homework upfront. Go with the company that you trust and the plan that you think fits your budget and your needs. Good luck! Alex Embrace Pet Insurance http://www.embracepetinsurance.com
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