Can You Afford to Be Without Pet Insurance?

Could you afford an unexpected $2000 for a medical emergency, or even more for a chronic serious illness? Are you saving enough every month so you could cover both routine and unexpected veterinary expenses? If your answer to these questions is no, you owe it to yourself and your cats to look into pet insurance.

Myths about pet insurance

There’s a lot of false information out there about pet insurance, much of it from people who may have looked into it several years ago, and never took another look. Let’s take a look at some common myths”

Pet insurance is too expensive

Pet insurance plans may start as low as $1 a day, depending on your pet’s age, health status, level of coverage, and the geographical area  you live in. In almost any case, pet insurance premiums will be far less than the average veterinary bill. Even a fairly simple illness can easily run into thousands of dollars.

Cats with pre-existing conditions can’t be covered by pet insurance

It is true that most if not all pet insurance plans won’t cover pre-existing conditions, but while pre-existing illnesses will limit your cat’s eligibility for coverage, she may still be eligible to be covered for accidents or wellness visits.

My cat is too old to get pet insurance

Most plans will have age limits on coverage. They will vary by plan, but even older cats in their teens can often be insured at higher premiums, depending on their health history. You’ll have to take your cat’s lifestyle and health status into account and do the math to determine whether it makes sense to pay a higher premium.

Putting money into a savings account is enough

According to a recent financial study, 64% of Americans cannot come up with $1,000 in the case of an emergency. If you’re disciplined enough to set aside a good chunk of money every month for pet care expenses, then saving is most likely the better choice for you compared to insurance, but be honest with yourself about your ability to do that.

Pet insurance won’t let me choose my own vet

Unlike human health insurance, there are no preferred networks or HMO’s for pet insurace. Pet insurance plans are indemnity plans, which means that you pay your vet, then submit the claim to the insurance company, and the insurance company reimburses you. Pet insurance companies will never get involved in treatment decisions for your cat; they are made between you and your cat’s veterinarian.

How to choose an insurance provider

There are a lot of options in the pet insurance market place, and it will require quite a bit of homework on your part to find the plan that’s right for you and your cat. Understanding what to look for when shopping for pet insurance is crucial.

Ask these questions when evaluating a provider:

• Is the company licensed in your state?
• Does the company have a good reputation?
• How long have they been around?
• Is the policy information easy to understand?
• Does the company offer customer service during business hours?
• Can you see any veterinarian you want?
• How much have premiums increased over the last few years?
• Will premiums increase as your pet gets older?
• What is covered and what is excluded from coverage?
• What is the company’s policy on pre-existing conditions?
• Does the company cover benefits for wellness visits and preventive care?
• Does the company cover holistic care?
• Is there a waiting period before coverage becomes active?
• Is there a maximum age for enrolling your cat?
• Are there reimbursement limits per case, per year, per lifetime?
• Is a physical exam required prior to enrollment?

Understand what is covered and what is not

Read over the entire plan description document to determine what services are covered and which ones aren’t. Most pet insurance companies have several options that come with different monthly pricing based on what will and won’t be covered.

For example, some plans include coverage for unexpected issues only, such as emergency surgeries or accidental injuries. Other policies come with higher monthly costs or deductibles but will reimburse just about any vet visit. Some of the most comprehensive plans reimburse for wellness visits, vaccines, and even physical therapy.

Look for payout limits

Many cat owners don’t realize that pet insurance often comes with a payout limit, which is the maximum amount of money your insurer will reimburse. These limits may be imposed on a per-visit basis, but most have annual or lifetime limits. If you’re looking for the greatest peace of mind and unlimited treatment for your kitty, an insurer with no cap on payouts might be best for you, although you’ll likely end up paying higher monthly premiums or have a higher deductible.

Decide whether you want wellness coverage

Wellness visits or annual checkups are an important part of keeping your cat as healthy as possible, but the good news about these visits is that you can budget and save for them. Premiums for plans that include wellness coverage are usually higher, so it may work out better for you if you save on your own for these visits.

Look for value, not just cost

While cost will always be an important factor when making a decision about pet insurance, focusing only on low cost will often leave you with sub-optimal coverage. Identify the most value you can afford that suits your personal situation. Decide what your monthly expenditure limit is and then shop for the most coverage and highest payout you can get for that amount.

Think carefully about add-on services

Many insurers allow you to customize your plan to suit your cat’s specific needs. For example, many companies don’t include coverage for vaccinations, but might offer it as an add-on. The same may be true for dental cleanings, flea and tick medications, or even acupuncture or other holistic therapies.

I put both Allegra and Ruby on Embrace Pet Insurance in 2015, and I haven’t looked back. I chose a plan that covers illness and accidents only with a $8,000 annual maximum, $500 deductible and 70% reimbursement. I chose not to get a wellness plan. At the time, Allegra and Ruby were seven and six years old, and the premium to cover both girls was about $30 a month.

Allegra will be 15 in August, and her current premium is $76 a month. Given that she needs regular check ups and bloodwork every six month and is on multiple medications for her various health issues, I still come out ahead financially. I’m sure her premium will continue to increase as she ages, and as insurance premiums in general are increasing across the board, but for us, it simply makes sense to have the peace of mind these $76 a month buys us.

I hope this article convinced you to at least look into pet insurance if you haven’t already. And if you have pet insurance, please share your experience so others can benefit from it.

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