AKC INSURANCE REVIEWS

What is Pet Insurance?

Pet insurance is defined as a veterinary insurance plan similar to a health insurance plan a human. It works in a similar way as a person’s health insurance plan, too: As a pet parent, you pay a monthly premium, and should your pet get sick or become injured, some veterinary care may be covered by your pet insurance provider. Like human health insurance, pet insurance won’t cover all of your pet’s veterinary health needs. Typically, these plans cover accidents and illnesses, while some plans will allow you to add coverage for preventative care at an additional cost. Otherwise, though, you’re on the hook for ordinary preventative care, such as vaccinations, annual well-checks, and the like. For covered conditions and treatments, pet owners are generally required to pay out-of-pocket upfront and then submit claims for reimbursement from the insurance provider.

Types of Pet Insurance Policies

An increasing number of companies offer pet insurance plans, but not all plans are the same. That means you’ll need to do some comparison shopping to find the right plan for your pet’s needs. In general, there are a few primary types of pet insurance plans available:

Accident-Only Plans: These plans provide coverage for treatment required in the event that your pet has an accident and suffers an injury. For instance, these plans may cover treatment for burns or broken bones. Accident-only plans do not, however, cover treatment related to illness.

Pet Wellness Plans: These plans offer coverage for routine treatments and prevention, including annual wellness exams, vaccinations, and flea and tick preventatives.

Time-Limited Policies: Time-limited pet insurance policies will cover treatment up to a maximum dollar amount, such as $1,500, per condition, and coverage for that condition ends after a specified time period, such as 12 months, after which the condition is excluded from coverage. For instance, if your pet develops diabetes, a time-limited policy would cover the first $1,500 of treatment or treatment for the first 12 months after diagnosis, whichever comes first. Because of these limitations, time-limited plans are often more affordable than more comprehensive policies.

Maximum-Benefit Policies: Similar to time-limited policies, maximum-benefit policies cap the dollar amount that the plan will cover for a condition. The primary difference between the two is that there is no time limitation on coverage for a condition with a maximum benefit plan – this policy would continue to cover treatment indefinitely, until the maximum dollar amount has been reached.

Lifetime Policies: Also known as covered-for-life policies, lifetime policies are among the most comprehensive pet insurance plans available. As such, they’re also the most expensive option. For pets requiring ongoing treatment for chronic illness or expensive surgical procedures, it’s a worthy investment. But again, no one has a crystal ball (at least not one that actually allows us to see into the future).

What to Consider When Choosing Coverage?

Your Pet’s Species

Dogs and cats are the most commonly covered pets worldwide. Of all pet health insurance policies currently in force in North America, 85% are for dogs, while the remaining 15% are for cats. In other parts of the world, small pets such as birds, reptiles, rabbits and ferrets may be covered, but NAPHIA member companies currently cover only dogs and cats.

Your Pet’s Breed

Some breeds are predisposed (more likely) to develop certain medical conditions. Its important to know the risks associated with your breed before you choose the level of coverage you require. For example, some types of dogs are more likely to develop diabetes or cruciate ligament injuries.

Cost of Treatment

Ask your veterinary professional about the costs associated with treating some of the most common conditions for your breed. This will help you determine the level of coverage “limits” you require. You may be surprised at the fees associated with certain conditions all the more reason to have pet health insurance in place.

What Is Not Covered?

Certain items are excluded from pet insurance policies. The most common ones are listed below. However, this is not an exhaustive list and you should check your policy.

Anything that relates in any way to your pet’s medical history before the policy started. This is known as a pre-existing medical condition. This also applies if you change your insurance provider, whether or not a claim was ever made.

Anything related to pregnancy and/or birth
Any routine, preventative or planned treatments, such as flea, worm and tick treatments, vaccinations, grooming, claw clipping, dental maintenance, spaying and castration

The purchase price of your pet if your pet dies after a certain age, typically nine years, is likely to be excluded
Waiting Period

Most policies have a medical exclusion period from the start of the policy, often called a “waiting period,” which ranges from 10 to 30 days. Claims can only be made for illnesses that begin to show symptoms after this date.

Challenges of Pet Insurance

Pet parents with pets who have pre-existing conditions may face challenges finding a pet insurance plan for their pet. Most of the time, a policy will exclude coverage for conditions that your pet has already been treated (or is currently undergoing treatment) for. While you should still be able to obtain insurance coverage, be aware that you’re unlikely to find a policy that will cover any costs related to pre-existing conditions.

Insuring older pets can also prove challenging. In the veterinary world, pets are typically considered “geriatric” when they reach seven or eight years of age. Because older pets are more likely to develop chronic illnesses requiring long-term treatment, insurance premiums will generally be higher than they would be for younger animals. You may also pay a higher deductible.

Pet insurance is rarely comprehensive, meaning pet owners are still responsible for some costs, including co-pays, deductibles, and any costs in excess of annual or lifetime maximums, or maximum coverage limits for specific conditions.