Pet Insurance: Is It Right For You?
Having pet health insurance options is a relatively new trend. Maybe ten years ago people would have laughed if you told them you bought pet insurance, but today it’s a big deal. As a pet owner, you probably know how expensive a visit to the vet can be. If you’re lucky, you’ll never have to do anything more than give Rusty a checkup and regular shots from him. But chances are Rusty had some more serious health issues. Genetic and physical disorders can be an expensive problem.
What does pet insurance offer?
It’s not that different from human health insurance. Pet insurance companies generally offer different plans. They have deductibles, premiums, copays, limits, and exclusions. Offers are highly variable, as is the case with human insurance, so if you’re considering buying, be sure to shop around. Understand what the risks are for Rusty, especially if she is a purebred. Know what you are genetically predisposed to and read the policies very carefully before you buy so you know what will be excluded.
What are the advantages of buying pet insurance?
According to US News and World Report, Americans spent $9.4 billion on pet health needs in 2006, and the costs are rising. With the increase in costs, the number of insurance policies also increases. But is it worth it? There are some benefits to buying a policy for your best friend.
While buying insurance for anything involves some risk, what is certain is that any health problems Rusty may experience beyond ordinary preventative measures will be costly. Just diagnosing a disease, for example, with an MRI, can cost up to $5,000. Having to pay a bill like this, not to mention the cost of treatment for your ailment, can be devastating. Many dog and cat owners have been faced with the horrible decision of whether or not they can afford to treat their pet. With insurance, you wouldn’t have to face that overwhelming choice.
Probably the biggest benefit of having a pet insurance policy, aside from potential money savings, is peace of mind. If you’ve ever thought about whether or not you could afford to care for Rusty if he developed cancer or was hit by a car, he may be a candidate for insurance. It might put your mind at ease knowing that you don’t have to choose between Rusty’s life and well-being and having money in the bank.
What are the disadvantages of buying pet insurance?
The biggest downside when it comes to buying insurance for Rusty is that it may end up costing you more than it saves. Perhaps more than with other types of insurance, pet insurance is risky. It is very likely that you will never need it or you will need it once or twice for minor incidents. Pet insurance premiums can cost anywhere from $2,000 to $5,000 over the average lifespan of a pet, and deductibles can be as high as $100 per occurrence. If you are going to buy a policy, you should be comfortable with the fact that that part of the money may end up being a loss. Especially for mixed breed dogs, pet insurance is often a loss for the owner because they tend to be much healthier than pure breeds.
Are there more cost-effective alternatives?
Check with your employer. Although still unusual, more companies are offering pet insurance as part of a benefits package. You might also consider creating a savings account just for Rusty. Basically, it would be emergency savings that you have set aside for any health problems that may arise. If you find yourself in a bad spot, some banks may offer short-term financing for pet emergencies.
