6 Things You Should Know Before Signing Up for a Policy
The pet health insurance industry is booming, with almost 4.5 million pets in North America covered with a plan. Is your fluffy friend part of this number? Should they be?
The decision to purchase the best pet health insurance plan for your pet is completely your own and depends on a variety of factors. Most people make the decision when they realize they cannot afford to pay for veterinary care in the event of a serious illness or emergency, and want to ensure their pets receive treatments to heal and recover.
If you’ve been thinking about taking out a policy for your pet, make sure you understand these six important facts about pet health insurance.
Pet Health Insurance Covers Many Kinds of Animals.
It’s a no-brainer that pet health insurance policies are available for cats and dogs. After all, 69 million U.S. households have a pet dog, while 45.3 million have a pet cat.
But if you need coverage for a more exotic or unusual pet, you may think you’re out of luck. Fortunately for you, that isn’t the case any longer. Today, you’re able to find pet health insurance coverage for reptiles, birds, rabbits, and even livestock. However, you may need to search for a specialized plan if you live with a rare pet.
Certain Plans Cover Preventative Care.
You read that correctly. You can find pet health insurance plans that cover a portion of or all the costs associated with preventative care – those vet visits meant to ensure your pet stays healthy.
Preventative care can include annual fecal and heartworm tests; vaccinations; check-ups; and even flea and tick prevention. But not every plan will cover this type of care, so you may need to shop around to find one that works for you and your precious pet.
Pet Insurance Covers Emergency Vet Visits.
It would be rare to find a pet health insurance plan without some form of coverage for emergency veterinary visits. Because emergency veterinary care is some of the most expensive, you’ll want a health insurance plan on your side to help defray the cost.
Even if your pet is healthy, there may come a day when they are injured or accidentally swallow something they shouldn’t. If you can’t afford to pay out of pocket for emergency care, health insurance is probably a smart purchase.
Some Insurance Policies Cover Genetic and Pre-Existing Conditions.
If your pet suffers from a genetic condition, or if they have been diagnosed with a chronic illness before you purchase your pet health insurance plan, don’t worry! You can find plans that cover genetic conditions that your pet inherited from their parents and plans that cover pre-existing conditions – those illnesses your pet was diagnosed with before you bought coverage.
Keep in mind, however, that monthly premiums for this type of coverage can be pricier than a more basic plan, and most plans require you to complete a waiting period after you purchase coverage before reimbursement begins.
You Need to Know These Numbers: Premium, Deductible, Annual Limit, and Reimbursement Rate.
Don’t let pet health insurance confuse you. Before you purchase a plan, you need to understand these four financial terms: premium, deductible, annual limit, and reimbursement percentage. Understanding how these plan features work will empower you to select the right one for your pet.
- A premium is the amount of money you pay each month to have pet health insurance coverage. Think of it as a subscription fee. Your premium will vary based on the type of coverage you choose, and your pet’s age, breed, and size.
- A deductible is the amount of money you’ll pay out of pocket before coverage begins. Sometimes your deductible is an annual amount, while other times, it must be met per veterinary visit. In general, the higher your deductible, the less costly your premium will be, and vice versa.
- An annual limit is the maximum amount you can be reimbursed for per year. Some annual limits are quite low, while others are unlimited.
- A reimbursement percentage is the rate you’ll receive reimbursement for the cost of veterinary care. For example, if your reimbursement percentage is 70 percent, that means you are responsible for paying 30 percent after you meet your deductible.
You May Still Need to Pay Out of Pocket Until Your Pet Health Insurance Carrier Reimburses You.
Some veterinary offices do not charge you the full amount of your pet’s care, and instead file the claim through your pet health insurance on your behalf. However, other veterinarians will charge you the full amount out of pocket on the day of services. Then, your insurance company will mail you a reimbursement check after you file the claim.
Talk to your pet’s veterinarian about their process before purchasing a pet health insurance plan. This way, you are prepared for your first veterinary visit after buying coverage.
The Choice is Yours.
Remember: only you can look at your finances and your pet’s overall health to determine if purchasing a pet health insurance plan is right for you.
If you need support or help in making your decision, turn to a trusted friend or family owner with pets, and talk to your veterinarian about their recommendations for care as your pet ages and what you may expect in the future.