All Policies Are Not Created Equal
Determining Your Need For Veterinary Pet Insurance
Lisa Boyer, DVM
One of the most common questions I am asked by pet owners is if pet insurance is worth the expense? The answer is a qualified “maybe.” Pet insurance depends upon the policy and your financial situation. I personally have pet insurance for all of my animals. It may seem illogical that a veterinarian would need insurance, but in my case, it meant the difference between life and death of one of my dogs.
A year ago, my 18 month old Wirehaired Pointing Griffon became acutely ill 24 hours after hunting. She went from being a happy-go-lucky dog to one who, for no known reason, had severe vomiting and diarrhea and was rapidly declining. The first 24 hours in the hospital with x-rays, ultrasound, blood work, fecal testing and aggressive medical intervention was $1500 after my professional discount. The next 72 hours required multiple plasma transfusions and other high-cost medical therapies. Without this treatment, my dog would have died. I knew that the likelihood of her survival with proper treatment was reasonable, but I also knew that her treatment could exceed $10,000. Every time the critical care specialist called and asked to do another transfusion at $500 per treatment, I didn’t hesitate because I knew I would be reimbursed by my insurance policy. The total bill for 5 days in the hospital was $6,000. I was reimbursed $5150. The cost of the insurance? $35 a month.
Determining Your Need For Veterinary Pet Insurance
Lisa Boyer, DVM
One of the most common questions I am asked by pet owners is if pet insurance is worth the expense? The answer is a qualified “maybe.” Pet insurance depends upon the policy and your financial situation. I personally have pet insurance for all of my animals. It may seem illogical that a veterinarian would need insurance, but in my case, it meant the difference between life and death of one of my dogs.
A year ago, my 18 month old Wirehaired Pointing Griffon became acutely ill 24 hours after hunting. She went from being a happy-go-lucky dog to one who, for no known reason, had severe vomiting and diarrhea and was rapidly declining. The first 24 hours in the hospital with x-rays, ultrasound, blood work, fecal testing and aggressive medical intervention was $1500 after my professional discount. The next 72 hours required multiple plasma transfusions and other high-cost medical therapies. Without this treatment, my dog would have died. I knew that the likelihood of her survival with proper treatment was reasonable, but I also knew that her treatment could exceed $10,000. Every time the critical care specialist called and asked to do another transfusion at $500 per treatment, I didn’t hesitate because I knew I would be reimbursed by my insurance policy. The total bill for 5 days in the hospital was $6,000. I was reimbursed $5150. The cost of the insurance? $35 a month.
Pill Pockets for meds. |
Deadly plant ingestion |
It is important to understand however, that not all insurance policies are equal. Many of them would not have covered this incident. Others would have capped the limit for payout. In the ever changing world of pet insurance policies, how do you know what you're getting?
Pet insurance is designed to help defray the cost of medical care should your pet become ill or have an accident. There are also plans that offer coverage for routine care such as vaccinations, annual exams, and spay/neuter. You should not purchase a policy expecting to save money. There is always the chance that you may never need to make a claim and the amount of your premium will exceed the cost of the care required. But, if your pet has even a single incident, you may potentially save thousands of dollars.
Pet insurance is not very different than human health insurance. You pay a monthly or annual premium, there is likely a deductible to be met before the policy will begin to cover costs and you may have a co-pay which is a percentage of what you must pay after the deductible is met. Just as with other insurance policies, the higher your deductible, the lower your premium. Some policies will have a maximum payout per incident, per year, per condition or per lifetime, while others have no such limitations. In the case of pet insurance however, you must pay the veterinarian first, file a claim, and then wait for reimbursement by the insurance company.
So how do you determine if you need pet insurance? First, consider the cost for unanticipated medical care. Veterinary care costs can vary greatly depending upon the type of illness or injury (emergency, acute illness or chronic disease) and the level of medical care you access (general practitioner, specialty or referral hospital, emergency hospital). You can expect the low end of an emergency bill to range from $250 to a high of $7,500, depending upon the condition being treated. For example, an emergency surgery to remove a foreign object from the stomach is approximately $3500. For cancer treatment or other chronic illnesses, care can exceed $10,000. If you are financially prepared to pay for an emergency medical bill of about $3,000, you may not need insurance. If you cannot afford to treat your pet for an unexpected emergency, pet insurance will help you help your pet. I also counsel owners to consider what decision they would make if their pet broke a leg. If the leg were fractured and required surgery, the owner would have to make one of three decisions: 1 - fix the fracture surgically at a cost of about $3,500, 2 - amputate the leg at a cost of about $1,000 or 3 - consider euthanasia. I know that this sounds horrible, but I have faced this scenario with clients dozens of times and have been asked to euthanize dogs over a broken leg or other very fixable conditions. If those same people considered insurance, they might have been able to make a different decision.
Placing money every month in a savings account is a good idea for routine wellness care for your pet, but since you can’t predict when or if your pet will need care for an illness or accident, you might not have enough time to build up resources to cover this expense.
If you determine that you need pet insurance, how do you choose a policy? You need to look very closely at the available policies and how they pay before you make your purchase. The premium you pay does not necessarily guarantee you good coverage.
There are other considerations that are important when choosing a policy. It is important to make sure that whichever policy you purchase will provide coverage for cancer, chronic disease (upon initial diagnosis and continuing care after diagnosis), hereditary and congenital diseases and for conditions common within a breed. For example, hypothyroidism and hip dysplasia are common within many sporting breeds. You would want to make sure that coverage for these conditions was not excluded. In some cases, companies may have you pay an additional premium to cover specific diseases within a breed. If your pet is a breeding animal, you may be able to purchase extra coverage in case of breeding related conditions (dystocia, c-section, etc.).
When purchasing insurance, you will need to decide if you want a policy that covers routine wellness coverage. Oftentimes, the cost of this type of coverage exceeds the cost of paying for the services out of pocket. Make sure that you calculate the cost of recommended wellness care on an annual basis before purchasing this coverage. Your veterinarian can provide you with an estimate for vaccines, lab work, dental cleaning, heartworm prevention, etc., so you can see if this type of coverage makes sense. You will find that some companies will cover the cost of alternative therapies like acupuncture and chiropractic.
The monthly cost of a premium may differ depending upon the age of the pet at the onset of coverage. It is less expensive to insure a puppy than a 5-year old dog. In addition, pre-existing conditions are often not covered and there may be a waiting period before accessing benefits. Some companies will cancel your policy or raise premiums if you make a claim. Others have no such restrictions. Make sure to thoroughly read the policy details so you know what policy exclusions exist.
It is important to know that your pet insurance plan will cover you if you move or while you are on vacation. Some companies are not licensed in all states and if you move or need to see a veterinarian while out of state, you should know what your insurance company will cover.
There are some excellent resources to research pet insurance companies. A good place to start is with your veterinarian. There are also several websites that will help you compare pet insurance policies. One of the best I have found is www.petinsurancereview.com.
Another great resource is a Youtube video called Pet Health Insurance Comparison - MyVNN.com.
There are many outstanding companies that offer insurance. I suggest you look at Trupanion, PetPlan, AKC, Embrace, Pets Best as well as VPI. These are not the only reputable companies, but they are ones with which I have the most positive experiences.
With the increased medical sophistication of veterinary medicine, the ability to treat diseases and injuries has improved dramatically, but not without an increased cost. A simple emergency veterinary visit can exceed $1500. Pet insurance in some cases, may enable you to make a life-saving decision for your pet that might not otherwise be possible.
Pet insurance is designed to help defray the cost of medical care should your pet become ill or have an accident. There are also plans that offer coverage for routine care such as vaccinations, annual exams, and spay/neuter. You should not purchase a policy expecting to save money. There is always the chance that you may never need to make a claim and the amount of your premium will exceed the cost of the care required. But, if your pet has even a single incident, you may potentially save thousands of dollars.
Pet insurance is not very different than human health insurance. You pay a monthly or annual premium, there is likely a deductible to be met before the policy will begin to cover costs and you may have a co-pay which is a percentage of what you must pay after the deductible is met. Just as with other insurance policies, the higher your deductible, the lower your premium. Some policies will have a maximum payout per incident, per year, per condition or per lifetime, while others have no such limitations. In the case of pet insurance however, you must pay the veterinarian first, file a claim, and then wait for reimbursement by the insurance company.
So how do you determine if you need pet insurance? First, consider the cost for unanticipated medical care. Veterinary care costs can vary greatly depending upon the type of illness or injury (emergency, acute illness or chronic disease) and the level of medical care you access (general practitioner, specialty or referral hospital, emergency hospital). You can expect the low end of an emergency bill to range from $250 to a high of $7,500, depending upon the condition being treated. For example, an emergency surgery to remove a foreign object from the stomach is approximately $3500. For cancer treatment or other chronic illnesses, care can exceed $10,000. If you are financially prepared to pay for an emergency medical bill of about $3,000, you may not need insurance. If you cannot afford to treat your pet for an unexpected emergency, pet insurance will help you help your pet. I also counsel owners to consider what decision they would make if their pet broke a leg. If the leg were fractured and required surgery, the owner would have to make one of three decisions: 1 - fix the fracture surgically at a cost of about $3,500, 2 - amputate the leg at a cost of about $1,000 or 3 - consider euthanasia. I know that this sounds horrible, but I have faced this scenario with clients dozens of times and have been asked to euthanize dogs over a broken leg or other very fixable conditions. If those same people considered insurance, they might have been able to make a different decision.
Placing money every month in a savings account is a good idea for routine wellness care for your pet, but since you can’t predict when or if your pet will need care for an illness or accident, you might not have enough time to build up resources to cover this expense.
If you determine that you need pet insurance, how do you choose a policy? You need to look very closely at the available policies and how they pay before you make your purchase. The premium you pay does not necessarily guarantee you good coverage.
There are other considerations that are important when choosing a policy. It is important to make sure that whichever policy you purchase will provide coverage for cancer, chronic disease (upon initial diagnosis and continuing care after diagnosis), hereditary and congenital diseases and for conditions common within a breed. For example, hypothyroidism and hip dysplasia are common within many sporting breeds. You would want to make sure that coverage for these conditions was not excluded. In some cases, companies may have you pay an additional premium to cover specific diseases within a breed. If your pet is a breeding animal, you may be able to purchase extra coverage in case of breeding related conditions (dystocia, c-section, etc.).
When purchasing insurance, you will need to decide if you want a policy that covers routine wellness coverage. Oftentimes, the cost of this type of coverage exceeds the cost of paying for the services out of pocket. Make sure that you calculate the cost of recommended wellness care on an annual basis before purchasing this coverage. Your veterinarian can provide you with an estimate for vaccines, lab work, dental cleaning, heartworm prevention, etc., so you can see if this type of coverage makes sense. You will find that some companies will cover the cost of alternative therapies like acupuncture and chiropractic.
The monthly cost of a premium may differ depending upon the age of the pet at the onset of coverage. It is less expensive to insure a puppy than a 5-year old dog. In addition, pre-existing conditions are often not covered and there may be a waiting period before accessing benefits. Some companies will cancel your policy or raise premiums if you make a claim. Others have no such restrictions. Make sure to thoroughly read the policy details so you know what policy exclusions exist.
It is important to know that your pet insurance plan will cover you if you move or while you are on vacation. Some companies are not licensed in all states and if you move or need to see a veterinarian while out of state, you should know what your insurance company will cover.
There are some excellent resources to research pet insurance companies. A good place to start is with your veterinarian. There are also several websites that will help you compare pet insurance policies. One of the best I have found is www.petinsurancereview.com.
Another great resource is a Youtube video called Pet Health Insurance Comparison - MyVNN.com.
There are many outstanding companies that offer insurance. I suggest you look at Trupanion, PetPlan, AKC, Embrace, Pets Best as well as VPI. These are not the only reputable companies, but they are ones with which I have the most positive experiences.
With the increased medical sophistication of veterinary medicine, the ability to treat diseases and injuries has improved dramatically, but not without an increased cost. A simple emergency veterinary visit can exceed $1500. Pet insurance in some cases, may enable you to make a life-saving decision for your pet that might not otherwise be possible.
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Look at the Maximum Payout Limitations:
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There are a few companies that do not have a maximum payout as described above. These are the most flexible types of plans that allow you to make medical decisions for your pet based upon your pet’s best interest, not financial issues. |