Healthcare Benefits for Your Pet? Everything You Need to Know About Pet Insurance.
Increasingly, our clients are coming to us with questions about insurance coverage for their pets. The questions are as varied as the pets themselves: “Which plan do you recommend?” “Is this treatment covered?” “Do you accept this type of insurance?” “Do I really need insurance for my pet?” Indeed, the options given to pet owners are almost as daunting as those they face when choosing insurance for themselves. Luckily, with a little bit of research, we were able to find some answers to these questions and others.
While the recent popularity and media hype about pet insurance may make it seem like a relatively new concept, it has actually been around for over 25 years. In 1982, Veterinary Pet Insurance (VPI) issued the very first pet insurance policy in the United States- to Lassie, the famous canine television star. [source: Embrace Pet Insurance]. VPI paved the way for other companies, and now, as a quick Google search will show, there are upwards of 10-20 companies vying for the top spot in this very competitive market.
So how do you decide if you need pet insurance at all? Consider that the average yearly cost of owning a dog is $730, and some dogs can live well into their teens. That means that a dog that lives to be 15 years old will likely cost you $10,950, and that doesn't include any unforeseen medical expenses. [source: Family-Pet] That raises the question- how much could you afford to spend if your pet had a medical emergency? Just like in human medicine, veterinary medicine is making constant advances that allows for innovative procedures and new equipment that could save the life of a pet that, just a few short years ago, might have faced euthanasia under the same circumstances. However, cutting edge technology leads to higher healthcare costs. Consider this: the average annual cost to insure a dog is roughly $336. In 2006, according to the American Veterinary Medical Association, the cost of veterinary care in American households averaged $366. [source: AVMA]
It is important to note that pet insurance is not some magical cure all that will eliminate your vet bills. You will still have to pay your deductible (the amount for which the insured is liable on each loss, injury, etc., before an insurance company will make payment) and co-pays (a small fixed amount required by a health insurer to be paid by the insured for each outpatient visit or drug prescription.) and there will be a limit to how much your policy will pay out each year, but the overall cost may not be much more than what you are currently paying for veterinary care. In the event of an emergency, pet insurance could save you hundreds, or even thousands of dollars.
Pet insurance differs from human insurance slightly in that the pet owner pays for all costs associated with veterinary treatment up front, and is then reimbursed by the insurance company. Generally this is as easy as giving the veterinary staff a claim form to fill out for you, and then faxing it to the pet insurance company. Some companies will require pre-approval for certain procedures, and all have very helpful customer service departments who can answer specific claim and coverage questions for you.
So how do you choose the right insurance for you and your pet with so many companies vying for your business? The choices are simpler than you might think. First, determine what your needs are. If your pet is older or has certain genetic or pre-existing conditions, some companies will not offer coverage. Then determine what level of reimbursement you want. Each carrier offers different plans, and each level of coverage differs. You can also look at factors such as the length of time the business has been around, the familiarity of the brand name, and associations the company may have with charities or other business, etc, and, of course, their ranking with the Better Business Bureau. Finally, make sure that the insurance you want will cover visits to the veterinarian of your choosing.
For additional information, please visit HowStuffWorks.com.
Bullen, Vivien. "How Pet Insurance Works" 30 January 2009. HowStuffWorks.com 05 August 2009
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