Specialty veterinary services and expensive diagnostic tools such as MRIs contribute to the increased cost of pet health care. Veterinarians are now able to offer services such as removing cataracts, kidney transplants, and radiation therapy that help to prolong the life of pets.
Health screenings often detect problems that once would have gone unnoticed and untreated. These advanced procedures have turned once-fatal and debilitating conditions into treatable ones.
Owners whose pets are accident, injury or infection-prone can benefit from purchasing pet insurance.
What is Pet Insurance?
Pet insurance is used to help cover the cost of veterinary services to treat illnesses and injuries. It can help reduce the risk of caring for a pet and lessen the frequency of “financial euthanasia,” the decision to put a pet to sleep because of a lack of money to pay for the pet’s necessary medical care.
Pet Insurance Companies
Veterinary Pet Insurance (VPI) is the oldest, largest and most well-known pet insurance company in the United States. VPI was founded in 1982 by a group of over 700 veterinarians headed up by veterinarian Dr. Jack Stephens. The first policy was written to cover TV's heroic dog Lassie. Some of the other pet insurance providers include the AKC Pet Healthcare Plan, ASPCA Pet Health Insurance, Embrace Pet Insurance, Pethealth Inc. and Pets Best Insurance.
Obtaining Coverage
Pet health insurance is usually introduced to clients by veterinary staff. Some clinics assist pet owners with submitting their claims for reimbursement. Not all pet insurance plans are purchased as individual coverage. Employers such as Office Depot and Del Monte Foods Co. provide pet health insurance as an optional employee benefit.
United States Pet Ownership Statistics
According to the 2009/2010 National Pet Owners Survey, 62% of households own a pet, which equates to 71 million homes. In 1988, the first year the survey was conducted, 56% of U.S. households owned a pet as compared to 62% in 2008.
Reduced Premium for Healthy Pets
Healthy, active and athletic pets can wind up with cuts and scrapes, ear infections and stomach upsets requiring treatment. These pets can benefit from a plan that provides coverage for accidents and illnesses with a reduced premium due to their good health.
Depending on the plan and type of coverage, the cost can range from 99 dollars for a discount plan up to 500 dollars or more per year for a comprehensive one. The cost is less expensive for younger pets. The plan may not cover older pets. If it does, the cost of the coverage will be more expensive than for younger pets.
Covered Services
Pet coverage ranges from selected accident and illness only plans to comprehensive ones.
For those who would like the security of a plan that covers every routine visit and every vaccination, a comprehensive pet insurance plan would be ideal. Those who prefer coverage for catastrophic illnesses only may feel more comfortable purchasing less coverage at a reduced premium.
Comprehensive insurance plans may cover:
- Annual physical exam
- Annual dental cleaning
- Diagnostic testing when the medical condition is covered by the policy
- Spaying and neutering
- Surgery
- Treatment and medication for injury
- Treatment and medication for illness
- Vaccinations
Is Acceptance Guaranteed?
Acceptance isn’t guaranteed for all pets. Some plans require medical history records for enrollment in their plan. The medical history record can be used to confirm the pet’s age. This is important because some insurers have a maximum age limit.
Determining Eligibility for Coverage
Factors that can affect eligibility for coverage as well as the cost include:
- Any pre-existing conditions
- The pet’s age
- The amount of coverage
Carefully Review the Insurance Policy
It’s important that owners carefully review their pet insurance policy. This can help them determine plan limitations and exclusions, so they know what's not covered. Some plans have preset limits and deductibles.
A plan may exclude a specific condition for which treatment is needed. For example, owners should check to see if accidental ingestion is covered. Since pets sometimes ingest objects that can be harmful, pet owners should speak with an insurance company representative to see if the plan covers surgeries for removal of accidentally ingested objects.
Pet insurance reimburses policyholders, not veterinary clinics.
Policy Features to Consider
- Deductible: Is there an annual deductible?
- Maximum age: Is there a maximum age for eligibility?
- Multiple pet discount: Is there a discount for covering multiple pets on the same plan?Policy limits: What is the maximum amount that the company will pay each year or even over the life of the plan?
- Pre-certification: Does the policy require pre-certification for covered services?
- Pre-existing conditions: Is there an exclusion for pre-existing problems and hereditary conditions?
- Reimbursement: Is the reimbursement based on actual veterinary bills or a fixed benefits schedule?
- Surcharge: Is there a surcharge for older pets?
Pet owners are becoming more attached to their pets. Some owners feel their pets are an important part of the family because their pets provide companionship and security. As this relationship continues to grow, more owners want the best treatment for their pets to help relieve the pain caused by illnesses and injuries.
Pet insurance is one way to reduce the total cost of a pet's medical treatment. It allows owners to budget and control the cost of keeping their pet healthy.
Noileen Richardson - Noileen Richardson is an insurance specialist who began her insurance career almost two decades ago as a property and casualty licensed ...
