The Undeniable Pet Insurance
Published July 9th, 2008
I see many articles both in print, and on blogs written about the cost of pet ownership, and how people cope with these costs. It always gets me thinking, but I learned a long time ago not to judge people, since you never really know exactly what’s going on in their life. I never comment on how, why, and what people decide when it comes to spending money on their pets, I just listen. I’ve listened for a long time, and now I’m writing one of the very few posts that I will ever write relating to pets and personal finance.
To begin with, this post is no way going to suggest what anyone else should or shouldn’t do, it’s simply a story about something from my life that’s worked well for our family–and I will share it with you.
18 years ago, my parents finally gave in to the constant pleas of a 12 year-old girl, and agreed to let us have a dog. This dog’s name was Jasper, and he went on to be my best friend, supporter, and protector for many years. He was part of the inspiration for my wanting to become a veterinarian, and has given me many gifts over the years that no one could ever put a price on. His entry into our family was followed shortly by a Terrier cross named Shadow. What I didn’t know at the time, and didn’t find out for many years, is that the day we brought each of them home, my mom started depositing $25 dollars a month for each dog into a high-interest savings account.
Over the years, the automatic deposits continued. The money was dipped into only a couple of times for small emergencies like a broken toe, and by the time I got Naula (my yellow Lab) while in university about 10 years ago, there were a few thousand dollars in the account, and my mom was happy to give me some it to rescue Naula and pay for the hip surgeries that she needed, with plenty left over. Nauls is doing great now, and sadly Jasper and Shadow have since passed on. This spring, we were sad to discover that at the age of almost 18, that Shadow had a very aggressive terminal cancer, and we were able to provide him with the best treatment, comfort, and care possible, which even included acupuncture from a veterinarian who practices integrative medicine to help with his back pain and circulation (you can read my goodbye to him here–if you’re interested). We used a significant portion of the money in the account, but still have a fair amount left.
Even though I work with animals for a living, I don’t deal closely with any of the pet insurance companies. In my part of Canada anyway, the client usually pays for the bill and the time, I sign a form for that visit, and the form gets faxed in with the client getting reimbursed at a later date. I think that pet insurance has come a long way over the last 10 years, and I believe that more and more people are thinking about it to help offset and prepare themselves for some of the unexpected costs that often go along with having a furry dependent.
At the time we got our first dogs, pet insurance wasn’t an option as far as I know, but my mother was wise, and if I were in her shoes today, I would make the same decision she did. I look at my mom’s automatic savings program as a form of basically undeniable pet insurance, with no restrictions. This isn’t to say that pet insurance isn’t a good option for many people, but it’s just not right for me.
From the companies that I’m familiar with, on average the monthly premiums per animals range from $25 a month for a basic plan, to $75 a month depending on the type of package and coverage you choose. Often the highest priced packages will include routine things like your annual vaccines. If you are going to get pet insurance, it’s probably best to get it when your animal is very young and healthy (like many other types of insurance). Many companies will insure pets with pre-existing conditions, but usually will not cover that condition, and the premium may or may not be priced differently. Sometimes there will be certain restrictions if the pet is of a certain high-risk breed. Like many types of insurance policies, there are often limits to how much a company will cover for a certain condition, and limits for certain types of care or therapy. Pet insurance probably works best for people with multiple animals, if you get it while they’re young. Having said all of this, each company has their own sets of rules, so you’d need to find out the specific details from each company and for each policy.
Personally, even though I get my veterinary care at a reduced rate by doing some of the work myself, and getting some done from my colleagues, I still have pretty significant bills, and have had to use my own pet emergency savings plan. The dogs I share my life with now were once in line to be euthanized because they have medical conditions requiring lifelong care. Because of my unique position, I know I will always adopt or rescue pets requiring extra medical care so they can have a second chance at the great life they deserve. I like the idea of automatically saving for any future emergencies and major medical conditions on my own for a few reasons:
- I have access to all of the money I’ve put in
- No one can deny any claims, and I’m free to spend the money on whatever type of veterinary care I see fit
- The money can be transferred and used for any animal I have
- At least when one of the dogs passes on, the money is still there to help one of the others
Of course the one big negative to my system is if a pet needs medical care in excess of what’s saved up in the account (say if your puppy comes down parvovirus the week after you bring them home, or they swallow something they shouldn’t and need surgery). This is a risk that I am willing to take, since I am lucky enough to have an emergency fund, and willing to dip into it save one of my pets.
Well, that’s my story. Like I mentioned earlier, I don’t judge others who may not be able to, or want to do this, and I certainly didn’t write this post to debate the cost of veterinary care, this is just what has worked out well for us: Saving the money in a high interest account, and allowing the power of automation and compound interest do it’s thing, is something that I will continue to do happily for many years to come. I’m sure that some people may not look at high interest saving accounts as a good long term investment tool because of inflation etc., but for this purpose, I think they’re perfect–just like my furry family members 
Coupon Arist on July 17, 2008
Great article & advice. I adore my pets, and I’m going to start ING accounts for them today!
Livingalmostlarge on July 18, 2008
I use Banfield Pet Hospital Wellness plan as a basic health treatment. What I’ve found and observed and am about to write is that I need the free office visit. I have two adopted Bichon Frises and we travel. We can go to any Banfield in times of need and get help.
Once when we were travelling we had to go to an emergency visit and we paid for the costs but not the $50 office visit. Plus we felt more comfortable knowing the banfield way.