Things to Consider about Pet Health Insurance

I'd like to follow up on the last post on pet health insurance and look into some of the questions you should ask before you buy a policy for your pet. As with most kinds of insurance it seems a little confusing at first. It almost makes you feel suspicious when you encounter all the fine print, confusing riders and insuranceze associated with most pet health insurance options out there, today.

Why can't it be more simple? I don't really know. It took me several days to figure out health insurance for myself and looking at the current options for pet health insurance isn't much easier. And I'm a Veterinarian for gosh sakes.

I'm not going to recommend any specific plans because I don't have any first hand knowlege with specific companies, but here are some questions you should ask yourself before you buy.

1. What do you want insurance for?

For my money it's not to save money or get discounts. That's not insurance. That's more like an HMO or even a PPO. In these types of programs you have to go to certain participating providers and they might not know you like your own veterinarian.

If you want to be sure you have access to the latest developments in veterinary medical care for your pet without worrying about the financial ramifications, then you should consider insurance.

Oh, and don't buy insurance after the fact. All insurance companies exclude pre-existing conditions. So if your cat breaks a leg don't expect pet insurance to be helpful. Insurance is for protection against what might happen in the future and insurance companies would quickly go broke if they covered pre-existing conditions.

2. Is the policy you are considering easy to understand?

If you can't easily figure out what is covered and how much you should receive in re-reimbursement, be wary. If the policy has lots of complicated fee schedules attached to it and it takes various riders to get the coverage you want, be wary. Good insurance should be comprehensive and transparent.

3. What is the deductible and co-insurance or co-pay amount?

Just like your own health insurance or even car insurance, in most cases you have to pay a deductible before the insurance kicks in. The higher the deductible the lower the monthly premium payments. If you can't find a high deductible policy option, be cautious. One of the best ways to ensure access to the best health care available, without financial constraints, is to purchase this type of policy.

The co-pay is the amount of the fee you have to pay after the deductible has been satisfied. Most plans offer anywhere between 10% and 30% co-pays. This means that you have to pay 10% to 30% of the veterinary fee after the deductible and the policy pays 70% to 90% after that.

Make sure you only have to pay one deductible a year. Some companies actually charge a deductible for each occurrence during the year. These policies may have less expensive monthly premiums, but they invariably pay out less to you.

4. What about routine wellcare like vaccinations and annual physical exams?

I'm a big advocate of annual visits to the Veterinarian. This is the best way to keep your pet healthy  over the long run. Good ole Darcie is 16 years old and still in good health. But you don't have to live with a vet to keep things running smoothly if you pay attention to annual wellcare.

Be cautious with wellcare policies that amount to nothing more than trading money back and forth. For instance, if you buy a wellcare policy for $200 per year that gives you back $200 worth of wellcare, all you've done is lend your money to the insurance company. They love that.

5. What if my pet develops a hereditary condition? Am I covered?

Most likely not. Many companies exclude hereditary conditions. You may be able to find a policy that covers hereditary conditions that have not shown up yet. In many cases dogs and cats that have the genetic potential to develop a hereditary condition, never actually come down with one. In that case you are lucky. But if you can find a policy that covers hereditary conditions if your pet has never shown any signs of the condition, you might want to consider it. It could be good protection from something like hip dysplasia that often won't show up until later in life.

6. Should I buy insurance for my puppy or kitten?

Some people think that puppies and kittens are inherently healthy and not prone to developing disease. They think they should wait until their dog or cat is old before buying insurance.

There are two problems with this line of thought. First, puppies and kittens get into all kinds of trouble. They are just like adolescent children. They don't know what can hurt them or not just yet. I've seen more accidents with puppies and kittens than older dogs that have been around the block.

Secondly, puppies and kittens should have far fewer pre-existing conditions and are less likely to have developed hereditary conditions than older dogs. Plus the premiums for younger animals are generally lower than for older animals. The best way to ensure a long and healthy life is to start early and that applies to health insurance too.

7. What do I know about this company? Have they been around a while? And even more importantly, do they understand the importance of the relationship I have with my pet?

Even if the company you are looking at is backed by some well known insurance company, it's no guarantee that they have a pet and pet owner focus. I think it's more important to buy from a company with a pet centric approach. Many insurance companies are strictly business and actuarial tables. It would be nice if they had some veterinarians or veterinary technicians with actual animal health experience on staff. 

Do your homework in this regard. They may look all warm and fuzzy up front, but look deeper. How do they communicate with you? Is it in insuranceze or a more pet friendly dialog. Do they offer more than just insurance? Can you get information on how to keep your pet healthy from them? Do they own pets themselves? Can they bring their pets to the office with them? Do they try to scare you into buying insurance or do they take a more positive approach and focus on keeping your special pet healthy and happy?

If they can answer yes to all these questions you might be on to something.

Comments

[Pet Insurance 101]

Hello Dr. Larry,

Very helpful post on pet insurance, it will help people who wanna know about pet insurance.. thank you for sharing? :)

Its always works if you check it out with different providers to get a good price or deal...

Pet insurance is intended to cover your pet in case of accident, illness, and loss, compensation for having to cancel your holiday, money for advertising or to pay a reward if your pet is lost or stolen or if they wound someone.

http://www.financeguide101.com/pet-insurance/

[Thomas]

Great article, I posted it on our site too to help spread the word on pet health insurance.

[Laura]

Excellent post Dr Larry.

If your readers are interested in hearing what current policyholders have to say about their pet insurance company, they can check out www.petinsurancereview.com.

Laura