PET HEALTH INSURANCE: A PRIMER FOR DOG LOVERS
By Kathleen Maher

Bring up the question of pet insurance and nearly everyone has a story to tell of a beloved pet lost and a fortune spent. But, ask if they currently have pet health insurance or would be interested in buying a policy and then people’s opinions vary.

I conducted an informal online survey of about 50 friends and acquaintances; 35 of them had strong opinions on the subject. Many had lost pets after an illness or injury and said they would defi nitely buy health insurance for future pets. Others had actually done research on the subject and weren’t quite so sure.

How It Works

In the case of accident or illness, pet insurers reimburse their clients after the fact. Unless your veterinarian offers a payment plan, you’re going to have to initially pay out-of-pocket. Some insurers reimburse according to a schedule of benefi ts – similar to the way many health insurance plans work. If the vet charges more for some services, the insurer will only pay the scheduled amount.

For most of the respondents in my informal survey, the biggest sticking point was restrictions on coverage for such things as congenital problems, health issues related to breeding, and pre-existing conditions. This was a concern for people with large, purebred dogs whose biggest health risks are congenital problems such as hip dysplasia, heart problems, arthritis, etc. Also, some respondents were worried that insurers can opt out after a year if their pets develop long-standing problems like cancer, simply by classifying the disease as a pre-existing condition.

Every company has a different set of exclusions and limitations, so be sure to read the fine print.

Pet health insurance is available for routine care as well as catastrophic illness or injury. Vaccinations, screenings, check-ups, dental cleanings, lab tests, etc. may be covered under such plans. Do your research, however. You may fi nd that if you were to take your dog in for routine care, you’d pay about the same amount or less as you would pay in monthly premiums.

One point to consider here is this: if you do opt for the insurance for routine care you will be more likely to actually take your pet in for regular check ups, vaccinations, teeth cleaning, and so on. As a result, you might well avoid serious problems down the road.

What It Costs

As you consider your options, here are some numbers that might be helpful. A quick check of insurance providers revealed that their premium rates are quite similar. An insurance plan covering illness, accident, cancer, etc. ranged from about $22 to $30 per month in premiums. Including the routine care package added another $23 to $30 to the monthly bill. Dog owners are therefore looking at a yearly outlay of around $300 to $360 for basic coverage and up to $600 to $700 or so for the full package. Keep in mind that every company has a different set of exclusions and limitations, so be sure to read the fine print on various policies and make a well-informed decision.

I did find one plan for as low as $15 a month, which covers accidents, allergic reactions, poison, and even stupid puppy tricks like “foreign body ingestion.” However, when it comes to illness, the policy pays $500 for fi rsttime illness and allows only two fi rst-time illnesses a year. This suggests that treatment for long-term illnesses might not be covered beyond the initial treatment. Again, read the fine print.

A Dog’s Value

Some good questions to ask are:

• What am I worried about in terms of my dog’s health?
• How much would I be willing and able to pay if he became seriously ill or was injured?

I found that some people are perfectly comfortable discussing this second question, while others are horrifi ed by it. One respondent said matter-of-factly that he expected to get about 10 years of healthy life from a dog or a cat. After that... well, his willingness to commit to long-term care or high-priced treatment decreased. Another said he has a particular fi gure in his head beyond which he will not go, but he also confessed to routinely paying over $150 per visit in vet bills for his Vizsla. He says his vet is constantly offering insurance and costly add-on services for his dog.

Some people I heard from prefer the approach of starting a savings account and paying a “premium” into it each month so the funds will be available when and if serious vet bills come along. If they don’t, these folks reason, the money hasn’t been wasted.

Weighing the Options

My survey respondents who have bought insurance say they find their peace of mind to be worth the price of the premiums. One has four dogs and two cats and has insured all of them. He says, “If you have ever owned a pet that got terminally ill and eventually passed, you know how much it costs. Quality insurance is a must for the serious pet owner.”

Another respondent said she wouldn’t buy insurance even though she spent years nursing her dog and her cat. “Typically, your pet is only going to need costly medical care in the last few years of life. Odds are, you’ll end up paying more for insurance over the 10 to 15 years of the pet’s life than you would just going out-of-pocket with the vet.”

Lindsey Gilbert is a veterinary student at UC Davis who has worked as a veterinary technician for five years. She believes in pet insurance and sees it as a growing trend. “People are willing to spend more on their pets these days,” she says. She knows many people who have had to struggle financially to provide basic care for their animals, not to mention the financial burden of post-op care and complex treatment regimens.

However, Gilbert is well aware that the choices are wrenching — especially when people might not even have the money to pay upfront, whether they are going to be reimbursed or not. “It can be thousands of dollars of surgery, against, sometimes, a 50% possibility of survival.” For that reason, some people use special health care credit plans rather than pet insurance. These plans offer favorable credit terms for medical expenses and are accepted by many veterinarians.

How much would you pay? What is your dog’s companionship worth? These are big questions that most of us don’t want to ask. So we buy health insurance or we pay what is necessary – and what we can – out-of-pocket. Either way, the intention is to keep our canine friends comfortable and with us as long as possible.

Kathleen Maher is a freelance writer based in Tiburon, California. Some of her best friends are dogs.