Pet Insurance- Yay or Nay?

Pet Insurance- Yay or Nay?

Americans love their pets! Almost 7 of 10 households in America have a pet, many treat their pet like a family member.

The number of pets has increased in the past year due to the pandemic.  There are health benefits (mostly with dogs) to owning a pet, such as more exercise and lower stress and depression levels.  Dogs have 60 times more sense of smell than humans.  This allows them to detect illnesses, such as epileptic seizures and the presence of some types of cancers. 

It can be heartbreaking when a pet becomes ill or passes away.  Pet illnesses can also break your bank account!  I have seen Veterinarian bills in the thousands!  Just like shopping for your own health insurance, pet health insurance (PHI) can be complicated and expensive.  “Lassie,” America’s favorite canine TV star, was issued the nation’s first pet insurance policy in 1982.

Pros to buying a pet policy include, but are not limited to:

  1. Eligibility: Cats and dogs are eligible for pet health insurance (PHI) as young as 8 weeks, up to 12 years old.
  2. Premiums: Premiums are lower when your pet is healthy (no pre-existing conditions) and the younger, the less expensive.
  3. Networks: Most policies (mainly reimbursement types) do NOT have networks, so you can choose your own Veterinarian.
  4. Coverages: Some policies cover up to about 90% of the cost of emergency care and unexpected illnesses. 
  5. Stop Loss: Having a (PHI) policy gives you piece of mind and caps the amount you would have to pay out of pocket when the unexpected happens to your beloved pet!  The worst scenario is called “economic euthanasia.”  This is when you must euthanize your pet because you cannot afford Veterinarian care.

Cons to buying a PHI (pet health insurance policy) include:

  1. Pre-Existing Conditions: Your pet’s existing illnesses/issues will typically not be covered. 
  2. Coverages: Not all policies cover preventative care, such as routine visits and vaccinations, or they assess and charge extra.
  3. Costs: Older pets cost more as do purebred dogs and cats to insure.
  4. Dealing with Insurance Companies: Many policies are reimbursement so policyholders pay Veterinary costs upfront, then file a reimbursement claim with the insurer.

Like any type of insurance, it is important to do your due diligence.  A great mentor of mine used to say, “the situation is the boss.”  One size does NOT fit all with pet health insurance, so doing the proper research is critical!

Money magazine’s top picks for Best Pet Insurance by Category for 2021 include:

  • Healthy Paws– Best Overall Value
  • ASPCA– Best Budget Coverage
  • Figo– Best 100% coverage
  • Trupanion– Best for Hereditary Conditions
  • Embrace– Best for Dental Illnesses
  • Nationwide- Best for Exotic Animals
  • PetFirst- Best Preventative Care

Things to look for when comparing policies are deductibles, annual benefit caps, coverages, waiting periods, and premiums per month.  PHI premiums can range from $25-$150 per month based on your pet’s age, size, breed, and pre-existing conditions.  Cats can cost up to 60% less to insure than dogs.

For those people that do not want to buy a policy but would be interested in paying less for services, there are pet care monthly membership discount programs.  One interesting program (that we have access to) is the Pinnacle Pet Care Prime Membership Plan.  This “discount plan” offers unique discounted services with no forms, deductibles, or dealing with insurance companies.  Coverages include a discounted drug card, 24/7 telehealth, cashback shopping (with Target, Walmart, and Petco), dog sitters, special pet pharmacies, and lost pet recovery services.  The discount membership programs usually range from $25-$50/month.

Pet health insurance (PHI) and discount membership plans are not for everybody; however, they can really come in handy when you and your pet need it most.  My suggestion is to contact your Vet and ask if they take pet insurance and/or participate in pet discount programs.  For those interested in the discount program, feel free to reach out to me at [email protected].