Should I Get Pet Insurance (all you need to know)

Should I Get Pet Insurance?

We love our pets. No matter if it’s a cat or a dog, they are as much family to us as our next of kin.

Owning a pet can be a rewarding and a fabulous experience for most of us. If you have pet insurance it will save you from extra stress and cost in the long run if your pet falls ill.

It is a gift, to be able to nurture these adorable animals to grow with us and share our lives with them and letting them share their lives with us.

But things aren’t always rosy with adopting a pet. And while it can be an amazing experience getting to spend time with your furry companion, it also means taking responsibility for their wellbeing and caring for them in their sickness.

Most pet owners happily take that responsibility on their shoulders since they love their pets dearly and consider them family but for a new pet owner, this can be quite intimidating.

Pets get all kinds of sick. Sometimes they are born with defects that only make themselves known in the later stages of life and at other times, can pick up diseases that range from annoying to infectious to life-threatening.

Some can be as mundane as a recurring cold or flu or as complicated as tumors or bone cancer.

And if your pet is diagnosed with such an illness, you must provide them the treatment they need and rightfully deserve.

But the thing is, medicine whether it be for humans or for animals, is expensive.

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And as pharma companies hijack prices that make common medicines out of reach for most individuals, you must budget for such untoward incidents when getting a new pet.

There are other things to consider too. Before a diagnosis can be made, your pets need to be taken to a vet who will usually charge quite a high fee of consultation for the diagnosis.

Plus you also have to account for travel expenses and any fees that might be incurred if the vet decides to keep your pet under observation for some time.

Now, this might seem a little intimidating. And frankly, expensive.

Health insurance is available for all types of pets, including dogs, cats, rabbits, ferrets, exotic birds, reptiles, potbelly pigs and various rodents.

The cost of coverage is based typically on the animal’s age, health profile and the level of care you choose. Generally, older animals cost more to cover—and some companies have age limits.

Also, there may be exclusions for pre-existing conditions, and some insurers may not cover certain breeds that are prone to hereditary conditions (e.g. hip dysplasia).

Advances in veterinary science have led to the availability of high-tech wellness care, diagnostic testing, treatments, and surgical procedures.

Cancer care, MRIs, pacemakers, joint replacements, and, yes, advanced dental care are increasingly common.

Many private veterinary practices now offer high-tech procedures previously offered only at regional, specialty referral clinics.

A big misconception about pet insurance is that it’s too expensive.

We spend hundreds of dollars on ourselves and our families each month for health insurance, yet we don’t get coverage for our furry “children.” In reality, paying $30/month for pet insurance could end up saving your pet’s life.

The worst scenario is learning that your dog has cancer but having to turn down treatment because you can’t afford the bills.

No one wants to face that decision, and signing up for pet insurance takes care of most of the cost.

Pet insurance allows you to make the best choices instead of the least expensive ones when an emergency arises.

For this reason, it’s vital to consider buying pet health insurance to protect your canine loved one (and your wallet) from some of life’s most unfortunate incidents.

What kind of pet do you have?

The majority of pet insurance policies are taken out for cats and dogs and it’s easy to find insurers for these animals.

Insurance for smaller mammals, such as gerbils, rabbits, and hamsters are available, but due to shorter lifespans, they are of debatable value.

Exotic pets, like lizards, snakes, and parrots, are harder to insure as there are not many companies offering this service.

However, because these pets are unusual, it’s worth looking into the costs of covering them.

You’ll be unable to insure venomous animals, but you might want to look into liability insurance.

Pet insurance.

Most pet health insurance companies require that you pay your vet at the time of service; the insurance company reimburses you later for the portion of the bill they will cover.

The APPA’s 2015/2016 national pet survey reported that the average “routine veterinary visit” for a dog cost more than $200, and the average “surgical vet visit” cost more than $450. Advanced, high-tech treatments cost much more.

If you want to provide your dog with high-quality healthcare throughout his life, pet health insurance deserves a serious look.

And since you can’t buy health insurance for your dog when you really need it most, like in an emergency, or when a pre-existing condition erupts into a critical situation, now is the best time to look into health insurance that could save you hundreds or even thousands of dollars.

Available pet insurances.

Currently, a number of companies offer some type of pet health insurance in the U.S. Just like with human health insurance, there are several vastly different types of coverage a pet owner can buy.

Classic pet health insurance is intended to cover expenses, unplanned events. Like health insurance policies for humans, most canine policies come with monthly premiums, a variety of deductible choices, various coverage levels, co-pays, and caps that limit total annual or lifetime payouts.

Canine health insurance policies may exclude older dogs or particular breeds from coverage, as well as certain genetically-based conditions common to particular breeds.

The policies normally exclude pre-existing conditions and may offer discounts for covering more than one pet member of a family.

Wellness coverage is one of the many choices available in classic insurance policies, along with prescription drug coverage, cancer treatment coverage, alternative therapies, accidental death, etc.

Wellness packages generally offer preventative services such as vaccines, annual check-ups, and blood tests at a set rate.

Then there are variations – policies that cover only catastrophic illnesses, or, at the other end of the spectrum, plans that cover catastrophic care as well as regular wellness care and even alternative therapies like acupuncture.

Some have options for dental care and prescription drug coverage. Some policies include a lost pet recovery service option or other “value-added” incentives. Of course, the costs for these plans vary significantly.

Insurance is the most effective method of mitigating high-tech veterinary expenses, but it’s underutilized.

It sometimes seems that unless the veterinarians fill out the paperwork just so, with the codes and abbreviations aligning properly, like stars in the heavens, many claims go unpaid.

Understanding coverage.

 

There are three general levels of coverage:

One.

Basic coverage is the least expensive option. Basic coverage provides the lowest reimbursements for procedures and will help pay for accidental injuries, poisonings, and illnesses (including cancer).

These policies typically include an annual deductible, caps on reimbursements per accident or illness, as well as caps on total reimbursements per policy term.

Two.

Comprehensive coverage is costlier than basic coverage but offers more generous benefits, such as reimbursements for accidental injuries, emergencies and illnesses, and coverage for office visits, prescriptions, diagnostic tests, X-rays and lab fees.

These policies feature lower annual deductibles than those for basic coverage, but also cap reimbursements per accident and illness, as well as on total reimbursements for the policy term.

Three.

Pet well care protection reimburses for preventive care, including physical exams, flea and heartworm prevention, and vaccinations.

While there is no deductible for good care, there is a nominal deductible for other medical services.

While shopping for pet insurance, you may come across veterinary discount plans, which are membership-based services rather than an insurance policy.

With a veterinary discount plan, the member pays a monthly fee and then is entitled to reduced rates on pet services, medical procedures, prescriptions and products from a specific group of veterinarians who also agree to participate in the plan.

Note that, in the event of a catastrophic and costly pet illness or injury, a discount may be useful but you will likely still be out of pocket for much more than if your pet is insured.

Also, unlike pet insurance, veterinary discount plans are not regulated by law.

Life and theft insurance.

Life and theft coverage is designed to ensure the lives of highly valuable animals and is typically purchased by zoos or by the owners of championship cats, dogs, horses, and police dogs.

The policy reimburses owners of stolen animals and pays a death benefit if an animal dies during transport or other covered events.

General insurance protections.

Your current homeowners’ insurance policy may offer some protections that encompass pets. For example:

• Liability – If your dog bites someone and causes an injury, and you are sued, your homeowners or renters insurance policies provide liability protection to defend you in court. Be aware that most policies will exclude any dog with a history of biting and aggressive behavior. In addition, many homeowner associations restrict some breeds that are typically thought to be dangerous—and a growing number of communities require owners of these dog breeds to carry additional liability coverage.

• Personal property – Some owners tend to spend a lot of money accessorizing their pets—and these items are covered under the personal property section of standard homeowners and renters policies. So if your puppy’s favorite cashmere dog coat is stolen or damaged, you’re covered!

Understand these insurance terms before you shop:

The world of health insurance has a language of its own. We’ve defined some of the terms you should be familiar with:

• Benefit schedule — Allowable charges for specific treatments defined by the insurance company in its policy. These charges may or may not equal the actual charges billed by your veterinarian for the treatments.

• Co-pay — The portion of each veterinary bill the policyholder must pay before the insurance company becomes responsible for its payment. The amount varies according to the individual policy and is not cumulative. For instance, if your policy calls for a $20 co-pay, you must pay $20 toward each and every veterinary bill invoiced in the policy period.

• Coverage level — Restrictions outlining the payment responsibilities of the insurance company, including maximum payout amounts, types of treatments included in the plan, and types of conditions included in the plan.

• Deductible – The portion of the veterinary bill the policyholder must pay before the insurance company becomes responsible for any payments. The amount varies according to the individual policy and is cumulative. For instance, if your annual policy calls for a $500 deductible, you will have satisfied your deductible after having paid $500 in veterinary bills during the plan period, and the insurance company will pay future bills invoiced in the policy period according to other policy guidelines.

• Wellness care — Usually an add-on to a health insurance policy to cover preventative treatments like regular dental cleaning, heartworm testing, and fecal exams.

Maximum Payout.

A maximum payout is the maximum amount of money the pet insurance company will reimburse you. There are 5 different types of maximum payouts:

Maximum Payout Per Incident.

This is the maximum amount of money the insurance company will reimburse you for each new illness or injury.

Once you reach this limit, you will no longer receive money to cover that particular injury or illness.

Maximum Annual Payout.

This is the maximum amount of money the insurance company will reimburse you each policy year.

Once you reach this limit, you will not receive any more money that policy year.

Maximum Lifetime Payout.

This is the maximum amount of money the insurance company will reimburse you during the lifetime of your pet.

Once you reach this limit, your pet will no longer be insured.

Maximum Payout Per Body System.

This is the maximum amount of money the insurance company will reimburse for a body system, such as the digestive, musculoskeletal, and nervous systems.

Once you reach this limit for a body system, you will not be reimbursed for any injury or illness that relates to that body system.

Maximum Payout Based on a Predetermined Benefit Schedule.

This is the maximum amount of money the insurance company will reimburse based on the predetermined listed fee structure.

This fee structure is available from the insurance company for your review.

Some pet insurance companies use only one type of maximum payout structure and some use a combination of payout structures.

Premium.

The premium is the amount you pay monthly or annually for your pet insurance policy.

Many factors come into play when your premium is determined. Those factors include: where you live, your pet’s age, the co-pay and deductible you select, your pet’s breed/species and the amount of medical coverage you select.

Pre-existing conditions.

Pet insurance companies do not cover pre-existing conditions. A pre-existing condition is a medical condition that is present before you apply for a policy or during the waiting period.

Difference between pet and human health insurance.

It is a reimbursement program. This means you pay your veterinary bill and then file a claim to the pet insurance company for reimbursement.

It does not use networks. You are free to use any licensed veterinarian in the U.S.

Some plans will even allow you to use licensed veterinarians in other countries while traveling with your pet.

The insurance of our choice: Trupanion.

We’ve used this service throughout the years and loved it which is why we cannot recommend Trupanion highly enough.

Trupanion is designed to cover “major veterinary cost you can’t anticipate,” rather than “expected veterinary costs.”

Plans are priced with a $0 deductible, but owners can increase the deductible level in $5 increments in order to lower their monthly premiums.

The plan pays 90 percent of the veterinary bills and will not increase as the dog ages. The plans cover hereditary conditions including hip dysplasia.

Why choose Trupanion?

Your pet deserves the best, most comprehensible coverage which is exactly why you should be choosing Trupanion as your pet healthcare service provider.

Simply put, a Trupanion policy covers the medical expenses of ALL unexpected injuries and illnesses your pet may face including hereditary conditions (such as diabetes, upper respiratory infections, and thyroid disease).

Congenital conditions (such as cataracts, heart diseases, liver problems, and nervous system issues) and other identified issues ranging from vomiting and diarrhea to cough and sudden change in weight.

Not all pet insurance companies offer coverage for all unexpected injuries and illnesses.

A lot of them have generally broad coverage, but there are big exclusions and limits to what they will cover.

Sure, your policy may be a few dollars cheaper each month, but will it give your pet the best protection? Veterinarians recommend Trupanion because they strive to have the most extensive coverage out of all pet insurance companies.

Complementary plans.

In addition to the awesome coverage they provide, Trupanion also has some of the most comprehensive and sensible complementary plans that can be availed by paying a little extra.

The plans are thus:

• Recovery and Complementary Care Rider: To fully support your pet with complementary, non-clinical procedures, you can opt into this rider. If you choose to opt-in for this plan, you’ll receive coverage for acupuncture, behavioral modification, chiropractic, homeopathy, hydrotherapy, naturopathy, physical therapy, rehabilitative therapy.

• Pet Owner Assistance Package: Help your pet outside the veterinary office by receiving coverage for advertising and reward for lost pets, boarding fees in the event you are hospitalized, liability coverage for third-party property damage, cremation or burial for deaths due to an accident, holiday vacation cancellation costs.

Waiting periods.

The waiting period is the time you must wait before your coverage starts. If an injury or illness happens during the waiting period, that condition will not be covered by the policy. Each insurance company handles waiting periods differently.

There can be one waiting period for illnesses and another for injuries. There can also be separate waiting periods for certain medical conditions.

Many of the pet insurance companies have ridiculous waiting periods before the plans can be availed to offset the chances of a loss to the company.

The Trupanion policy has a 5-day waiting period for injuries and a 30-day waiting period for illnesses.

This means that injuries that happen 5 days after enrollment and any illnesses that develop 30 days after enrollment are eligible for coverage (as long as there’s no evidence that the illness or injury already existed).

Please note that any injuries that occur during the 5 day waiting period or illnesses that begin during the 30 day waiting period are considered pre-existing and not eligible for coverage.

Filing claims.

Again, with most companies, they intentionally make it super difficult to file claims in order to minimize the chances of people actually following through.

Not with Trupanion! Trupanion believes in transparency and fairness which is why they have made filing claims so easy that even a child can do it.

After you take your pet to the vet, submitting a claim takes just a few minutes.

Paying for insurance.

You can pay by debit card, credit card (Visa, MasterCard, or American Express) or set up monthly bank account withdrawals and your premium will automatically be charged each month.

We recommend using a bank account for the fastest claims payments.

Using a bank account allows them to expedite the claims process by speeding up reimbursement delivery.

With direct deposit, you won’t need to wait for a check in the mail or take it to the bank. Bank accounts also safeguard your policy from lapsing where credit cards will eventually expire and can become frozen or canceled.

Things to keep in mind.

Choosing health insurance can seem daunting, but if you really focus on your own needs, your dog’s health, and your budget, you’ll be able to determine what sort of plan has the most potential for saving you money in the long run.

Consider these tips as you mull over your options:

• Consider opting in for a holistic program (like Trupanion) to pay help pay for routine healthcare, with a low-premium, high-deductible policy for unforeseen health issues. That way, you will receive a discount on regular veterinary charges and some supplies and services, and still have coverage for high-cost, unplanned procedures.

• Alternatively, if you are very self-disciplined, create an interest-bearing savings account to be used for your dog’s healthcare needs. Take a realistic look at how much you can afford to save; it may make sense to purchase a high-deductible, low-cost policy to cover expensive emergencies, even if you are assiduous about saving money to be used for routine veterinary expenses. Once the account contains enough savings to cover the high cost of emergency healthcare, you could safely discontinue the emergency policy.

• Owners with multiple pets may benefit most from discount plans health insurance to provide for even regular, planned veterinary expenses.

No matter what plan you choose, it’s incumbent on you to understand the policy thoroughly, and know how to follow the proper procedure for filing claims.

A company may have very specific requirements that you must meet – turning in paperwork within a determined time period, for example – and refuse to reimburse you if you fail to meet each of its requirements.

You may also find that you have to pay scrupulous attention to the reimbursements and the accompanying explanations that you do receive, to make sure you fully understand what the company did and did not reimburse you for, and why.

All insurance companies make mistakes, and if you don’t pay attention, you may find that the mistakes all seem to favor the insurance company!

One owner I interviewed thought he would get more credit on his first claim, since he had paid premiums for many years without a claim; insurance doesn’t work like that!

Also, after scrutinizing the reimbursement codes, he found that he failed to get reimbursement for something that should have been covered.

He complained to the company, and was told how to submit more paperwork to correct the problem and receive greater reimbursement, but felt it was too much work for too little return.

Just as with their own health insurance, dog owners may have to be diligent and persistent to receive the full measure of what they are due.

Ask these questions first.

All of these companies offer price quotes through their websites and/or over the phone.

Once you have determined the type and level of coverage you want for your dog, and you have some price quotes in front of you, call the companies whose plans you are considering and ask the following (and get the answers in writing!).

• What are the age limits? Some companies require puppies to be at least eight weeks old before coverage starts. Others will not cover older dogs.
• What is your waiting period? How long after you purchase the policy will you have to wait before all of the benefits kick in?
• What are your exclusions for pre-existing health conditions? How do you determine what is pre-existing? Does the company exclude certain breeds, charge more for certain breeds, or exclude breed-related, genetic conditions from coverage?
• What are your coverage caps or ceilings? Do they apply per incident, per body system, per illness, per year, or over the dog’s lifetime?
• How do you cover chronic or recurring illnesses? Does coverage continue for repeated treatment of the same condition?
• What triggers an increase in premiums? The dog’s age, filing a claim, built-in annual increases?
• Does the policy pay benefits base on a pre-determined schedule of charges or on the actual vet bill you pay?
• What are my co-pay choices? What percentage of my cost will the policy pay? Will my co-pay amount increase as my dog ages? Will my co-pay increase if I visit an emergency or specialty veterinarian?
• What are my deductible choices? Are deductibles different for visits to primary care veterinarians than for treatment by emergency or specialty veterinarians?
• Can I change my policy before the renewal date? If I do so, will I be charged a fee for the change?
• Can I get a multi-pet discount?
• How long after filing a claim will I receive reimbursement?
• Exactly what is covered and not covered in the policy? Checkups, spay/neuter, accidents, alternative therapies, preventative care, prescription drugs, illness due to tainted food?
• Can I use my usual primary care and specialty veterinarians, or must I use an in-network provider to receive benefits?

Ask these questions first.

– Spay or neuter your dog.

– Provide regular preventative care to keep your dog healthy. Keep his teeth clean by brushing his teeth, and having them cleaned professionally as soon as this is needed.

– Take him to your primary care veterinarian for a checkup every year.

– Protect his mental and emotional health too. Chronic stress can affect his immune system, and make him prone to physical illness.

– Control your dog’s weight; provide him with plenty of safe exercises.

– Prevent emergencies; don’t let your dog roam unsupervised.

– Keep your dog’s safety in mind. Use a canine seatbelt or put him in a crate that is securely fastened in your car. Don’t put him in conditions where he may become subject to heat stroke or frostbite.

– Feed your dog the best food you can afford. Change his diet if it seems to cause any sort of digestive, skin or other type of problem.

If you forgo pet insurance, take precautionary steps. If you opt not to insure your pet, it’s a smart idea to sock some money away every month for any potential pet health problems.

Think of it this way: If your dog or cat lives a good long life without any major health issues, you may end up with a much fatter savings account; if a problem does come up, you’ll be glad you put money aside.

The downside, however, is that you still may not put enough money away if your pet has serious health woes – or you could have a different financial emergency come up, raid your pet’s financial stash and then run into trouble if something does happen before you can replenish your fund. The takeaway: Planning ahead for substantial veterinary costs is a smart move.