The costs associated with pet health can accumulate at an alarming rate. Hundreds of dollars can turn into thousands in a matter of hours. And for many people, spending this kind of money simply isn’t an option.
This has led many pet owners to invest in an increasingly popular option -- pet health insurance. But is this option worth it?
Experts say that the answer depends on how much you’re willing to pay for your pets. Plus, you’ve got to find the right pet health insurance policy for your needs.
“If you get the right policy, it can be an asset to the health care of that pet and have a significant impact on the bill that results from a visit in an emergency situation,” veterinarian Jean Maixner, co-owner of Animal Critical Care & Emergency Services in Seattle, tells NBC News.
One of the most important aspects of health insurance for pets is purchasing the policy at the appropriate time. After all, insurance has to be in place BEFORE emergency strikes.
“Some people can’t afford the treatment, so they ask us to euthanize their pet. It’s absolutely horrible,” Maixner tells NBC News. “If people had acquired pet insurance before the emergency occurred, they might have been able to move forward with some reasonable treatment to help their pet.”
Weighing the Costs
However, not all organizations feel that pet health insurance is worth it. For example, Consumer Reports analyzed the costs associated with a reasonably healthy 10-year-old beagle named Roxy and found that the cost of pet insurance didn't make it worth the money. They say that it doesn’t economically translate unless a pet requires costly care.
In the research process, Consumer Reports looked at the benefits of several different pet health insurance companies, including ASPCA Pet Health Insurance, 24 Pet Watch Quick Care and VPI. They note that the parent companies of these options comprise about 90 percent of pet insurance policies. They also analyzed a newer company called Trupanion.
They compiled all of Roxy’s vet bills throughout her life and translated the amount to what it would cost in the present market. These included three different emergency room visits, two dental cleanings in which she received anesthesia, and any infections or issues for which the dog required treatment. The insurance companies then were asked two questions: How many of these costs would be covered, and what it would cost to insure her throughout her life?
What they found is astonishing. Of the nine policies analyzed, not a single one would have added up to the premiums paid. That said, the scenario changed when a number hypothetical health issues were added. At this point, the return on investment increased.
This is when knowing what you’re buying comes into play. If you do purchase pet health insurance, experts say that you need to read between the lines so that you know what will and won’t be covered if you make a claim. And reading these details can make for a tedious task.
“Look very carefully at the fine print so that you’re not surprised when you file a claim and find that it’s denied,” says Consumer Reports editor Tobie Stanger, as reported by NBC News.
Find out whether or not your vet is included in the network of providers of the plan you purchase. Many pet owners purchase pet health insurance, only to find that their vet of choice isn’t in the network they’ve chosen. So talk to your vet about which policies they accept.
Five Factors to Consider
ASPCA pet health insurance says that there are five things to consider when buying a pet insurance policy. The first of these is how much the plan actually costs. “Unlimited plans” cost more than other plans. However, you may not need this type of plan. For example, ASPCA says that just 0.5 percent of their customers hit limits. Therefore, they say that you need to decide whether a higher-priced plan is worth the dollars spent.
Second, know what will be covered in the way of reimbursements. They advise those researching pet insurance to steer clear of plans that “limit injury and illness payouts by using a benefit schedule, incident deductibles or exam fee exclusions.” Under these conditions, costs can rack up.
Third, know if wellness coverage is included in the plan you’re considering. Plans may not pay for your pet’s annual vet visits. So you need to know to avoid frustrating surprises when it comes time to pay your bill at checkout each year. Does the plan you’re considering cover shots and exams? Or does it kick in only in emergency situations? If wellness exams are covered, what portion will you be expected to pay, if any?
Fourth, ask how long the provider has been in business. What is the business’s Better Business Bureau rating? Are they new or have they been around a long time? Research reviews of the company -- preferably reviews that are not published on the company’s website. Read both positive and negative feedback. This will give you an indication as to why customers who were unhappy have shared this information.
Fifth, know what is needed to enroll your pet in the program. Does your pet need an exam? And what is the age limit? Are vaccines required to cover “certain conditions"?
“Consumer Man” Herb Weisbaum writes that pet insurance can be worth it if you’re going to be strapped for cash when an expensive emergency occurs. He says that to get the best bang for your buck, you should purchase insurance while your furry friend is still young. He advises readers to be aware that this type of insurance is meant to cover costs in a catastrophe, meaning deductibles need to be taken into account. Consequently, he says to choose a higher deductible if it fits your budget so that monthly costs will be lower. And he reminds readers that pets now live longer lives, which means that you just may make a claim.