Understanding Pet Insurance

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Pets are some of the delights that you can have. They are witty, funny, active, cute and very playful at all times. They give us good moments and unforgettable memories. They’re there in our side in the most direly stressful times of  feeling down, when all they just do is to sit beside us and feel the sympathy that come with the whisper, “I feel you”. When we feel like we’re carrying too much baggage and we feel like we’re alone, pets will always be there for us. So without a shadow of a doubt, they are indeed a part of our families.

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As a part of our family, we are held responsible for our pets. We feed them, clean their places, bathe them and train them. And in return, we get to do the fun stuff together with our pets. But just like us, our pets aren’t immune to accidents and the like. And whenever they encounter one, we can’t help ourselves to worry. That’s why we take them to a veterinary clinic for medical treatment needs.

Medical treatments, for humans or pets alike, are in no doubt expensive as it range in price to as much as thousands of dollars depending on the condition. In that case, it’s no possible that we might be caught off-guard of the payments. But since they’re part of our obligations, we have to swallow such cost for the hope that they do get better.

With that being said, enrolling for a pet insurance policy has been an extension of showing our love and affection to our pets. Pet insurance can help you pay the cost of medical expenses if they become ill or they encounter an accident. Not only is this insurance limited to cases like this. It also covers other expenses such as reimbursement for vaccinations, healthy annual exams, spaying/neutering and the like.

Your pet can be considered as part of your liability so the concept of other insurance policies being compared to it (such as auto and other properties) is very much the same, as in the concept of payout. Insurance policies don’t let you save for whatever cost it will incur. Instead, it will guarantee you that there will be an amount that will be given to you to topple up your expenses of the risk encountered.

As with all insurance, pet insurance may or may not benefit you. There is a chance that you will get back less from the insurance you paid because your pet stayed healthy and it did not incur any accident. But this is an uncertainty that works on all kinds of insurance premiums, so the toll isn’t mutually exclusive.  On the other hand, there is also a chance that you will get back more than what you paid for because your pet is doomed with bad luck. Either ways, pet insurance should not be used with the expectation to save money. It should be used to help mitigate or soften the economic shock of unexpected, high veterinary bills.

Pet insurance, just like human health insurance, also has premiums, deductibles, co-pay and maximum payouts where you could get to choose from depending on the policy you would like your pet covered. To give you a review on what these coverage are, here are the definitions.

  • Premium – where you pay a monthly or annual amount for the policy that will cover the risk
  • Deductible – where you pay first the bill before the company starts covering it
  • Co-pay – where you and the company split the covered expenses at an agreed percentage that you must pay after the deductible is met
  • Maximum Payouts – where there is an agreement of a maximum amount of money that the insurance company will pay on the condition agreed (either per incident, per year, etc)

There are also some differences between this insurance and the ones we have. Our health insurance suggests that the doctor is the one responsible to bill the insurance company for you and there are only certain networks of doctors approved by the company that you applied for. Comparing it with pet insurance, the bill must be paid directly by you to the veterinarian and the insurance company will be paying you after you file the claim to them. Also, pet insurance does not require a specific network of veterinarians. Any licensed one is applicable.

Just like any insurance policy, pet insurance must be properly understood from the get-go before you begin to apply for one. Read the policy before signing the papers and look for some loopholes that your agent might have forgetten. Now, if you’ve decided to get one, remember those things that we’ve pointed out to ensure that you optimize the opportunity for this insurance policy.