Pet Insurance – Is It Worth It?

5/17/16

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The last thing you want to think about when your pet is sick or injured is how much the veterinary care will cost.  Pet insurance helps to cover the cost of unexpected veterinary costs so that you can focus on making sure your pet gets the best care.

Understanding the Cost of Pet Care

Understanding the cost of veterinary care is an important part of making a decision about purchasing pet health insurance.  According to Wallet Hub, dog owners spend an estimated $235 – $776 per year on veterinary care, and cat owners spend $160-$564.  While lifespans vary, that can equate to around $10,000 over the course of your pet’s life!

However, due to the other financial obligations people have, only 3% of dogs and 1% of cats are insured. Of course, those that don’t have pet insurance are asking the question – “Is it worth it?  Is the protection against an unexpected cost of veterinary care worth the monthly premiums?”  There are two basic scenarios to consider:

  • The insurance pays out less than what you paid in premiums because your pet stayed healthy and did not have any accidents.
  • The insurance pays out more than what you put in if your pet does get injured or become ill.

Because either scenario is possible, pet insurance should not be used with the expectation of saving money.  Let’s break down the potential benefits by looking at the numbers:

  • Average life span of a dog:  10-13 years, approximately 11.5 years
  • Average cost of pet insurance for a dog = $32/month (according to pet insurances quotes)
  • Average cost of premiums over a dog’s lifetime = 11.5 years x 12 months/year x $32/month = $4,416
  • Potential estimated savings:  $8,924 (high end of estimated cost of lifetime care for a dog) – $4,416 = $4,508

 

  • Average life span of a cat:  15 years
  • Average cost of pet insurance for a cat = $26/month
  • Average cost of premiums over a cat’s lifetime = 15 years x 12 months/year x $26/month = $4,680
  • Potential estimated savings:  $8,460 (high end of estimated cost of lifetime care for a cat) – $4,680 = $3,780

None of us have a magic 8 ball to know whether or not your pet will get injured or become ill and whether pet insurance will be “worth it.”  However, at Family Pet Animal Hospital, we recommend having health insurance simply to help you soften the financial burden if something unexpected happens, so that you may provide optimal medical care for your pet that you may not otherwise be able to afford.  Pet insurance will provide the peace of mind that you will not have to sacrifice saving the life of your pet due to financial considerations.

What Should I Consider?

When deciding on what insurance is best for you and your pet, consider the following:

  • Do not choose your pet insurance provider based on cost alone. Choose it based on the coverage provided.
  • Choose the right maximum payout structure that first your “worst case scenario costs” (the threshold beyond which you would not be able to pay for your pet’s injury or illness – this will vary for everyone).
  • If possible, choose a plan that has coverage for cancer, hereditary and congenital diseases, continual coverage for chronic disease, medical conditions common to your pet’s species and breed.
  • Pre-existing conditions are not covered by ANY pet health insurance company. Therefore the sooner you get coverage for your pet the better.
  • Insurance companies have differing deductibles, maximum payouts, and waiting periods and restrictions. Read through policies carefully.

Our Pet Insurance Recommendations

We want pet owners find the insurance that best fits their needs and the needs of their pet.  Here at Family Pet Animal Hospital, we recommend Figo, Embrace, and Trupanion.  (Pet Insurance Review offers a plethora of information to help you choose the right insurance for you and your pet.)

 

(insert graphics for coverage for each or table of comparison)

Figo & Embrace at a glance.  Please note that information was pulled from each company’s respective websites and Family Pet Animal Hospital cannot guarantee accuracy of the information.  Please call the insurance provider directly with questions regarding exactly what is covered along with what is excluded.

 

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Sources:

Editor, author, or compiler name (if available).”Article name.”  Name of Site. Version number. Name of institution/organization affiliated with the site (sponsor or publisher), date of resource creation (if available). Medium of publication. Date of access.

Kiernan, John S.  “Is Pet Insurance Worth It?  Pros & Cons Explained.”  WalletHub.  n.d.  Web.  31 May 2016.

“100 Facts About Pet Insurance.”  PetInsuranceQuotes.  n.d.  Web.  31 May 2016.