Pet Health Insurance Explained
Pet health insurance is a simple, affordable solution for those owners who love their pets but is concerned about the financial hardship of high-quality pet care. It brings peace of mind, protecting you and your beloved pet from the inevitable and the unexpected. It is still relatively new, and many pet owners are still unaware of their choices. By going through the components of a typical pet health insurance policy, you will know what to look for when selecting the right pet insurance policy for you.
The principal component and the number one reason for people insurance their pets is to cover vet fees. The majority of pet insurance companies will quote the vet fees as an amount per incident, illness, or condition. The vet fees listing will be one of three types.
Type 1: Time & Fee Limit
This type of cover has a time limit over which the condition can be claimed (usually 12 months) and a maximum payout amount per condition. Once the time limit or dollar amount has been reached the condition is no longer covered. This is commonly referred to as a “12-month policy”.
Type 2: Fee Limit but No Time Limit
This type of cover has a maximum limit on the amount paid per condition but no time limit. Therefore, you can claim on this condition for as long as it takes to reach the conditions limit.
Type 3: Fee Limit per Year
This type of cover has a maximum limit on the amount paid per condition per year. The amount is reset each year when the policy is renewed. This is commonly referred to as a “cover-for-life policy”.
A pet health insurance policy can cover (sometimes as an option):
- Treatment of your pet for illness, accidents, or disease
- Payment for accidental death
- Payment for death by illness
- Advertising and Reward if your pet gets lost or is stolen
- Third-party liability cover (usually dogs only)
- Pet boarding cost if you are in hospital for a length of time
- Holiday cancellation cover if your pet is lost, injured, or ill while you are away
- Pet Travel cover
- Alternative Treatments
- Basic routine care
- Dental
- Telephone Helplines
A pet health insurance policy will not only vary in the level of coverage offered but different companies have their additions, conditions, and exclusions. One needs to look at the pros and cons of a particular product offering carefully and compare it with other pet health insurance products before deciding.
It is important when choosing pet health insurance to select a policy that matches your desired coverage with your budget. The higher your level of coverage, the more expensive the policy will become. The breed of your pet, the pet’s age, and your location will affect the cost of your pet’s health insurance policy. Generally, cat insurance is cheaper than dogs. Policies are contracted and quoted every year as a one-off annual charge or spread over twelve months.
All pet insurance policies will include an excess. An excess is an amount you pay before the insurance company starts paying. The excess is used to keep the policy cost down and to stop people from making small claims that take up time and money to process. Companies will charge an excess per claim as either a fixed amount or a percentage amount. You may elect to pay a higher excess to help reduce the cost of pet insurance.
Although pet health insurance may appear expensive first, consider the cost of veterinarian treatment if your pet has a serious accident or illness. If you are the type of owner who considers their pet an essential part of the family, pet health insurance makes financial sense.
