Lynchburg Living

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By Susan Davidson, CPA

For anyone who has ever had to put a beloved pet to sleep, even after spending inordinate amounts of money for medications, surgery or numerous hospital stays, it is easy to see why many consider pet insurance for their future pets. As any pet owner can attest, pets are more than just “man’s best friend,” they are members of the family. And just as anyone would want the best possible medical care for their family members, pet owners also want the same for their cherished pets. Unfortunately, many pet owners are forced to forego expensive medical treatments for their pets due to financial constraints.

So, is pet insurance the answer? The simple answer to this question is “it depends.” According to Consumer Reports, “The most important thing you need to know about pet insurance is that it is a form of enforced savings that almost never covers the entire bill.” Consumer Reports goes on to argue that it would be just as effective to deposit the monthly premiums in a savings account and pull out the funds when they are needed. On the other hand, Liz Pulliam Weston of MSN Money suggests that “if you’re the type of person who would do anything to save your pet, including spending thousands of dollars on medical care, insurance might be a preferable alternative to going into debt.”

If you believe insurance is the answer, proceed with caution. Not all pet insurance is the same. Shop carefully for the policy that best suits your needs, and as with any financial decision, be sure to read the fine print and take note of the common exclusions. Pet insurance is not a viable option for everyone; in fact, there are several alternatives that may be even more cost-effective.

Common Exclusions

The most common exclusions of most pet insurance policies are pre-existing and hereditary conditions.  For instance, medical procedures related to hip dysplasia, a common hereditary condition of retrievers, would be excluded under most policies. Other less serious conditions, such as respiratory and urinary tract infections, could also be excluded under the “pre-existing conditions” clause if the condition existed before the policy was taken out and recurs during the first 12 months of coverage. If your pet has ever had cancer, even if the cancer was cured, most policies will exclude all future types of cancer and any conditions that occur as a result of cancer. Many of these exclusions can be avoided by purchasing insurance while your pet is still young because premiums increase greatly with the age of your pet. In fact, most carriers will not cover pets over the age of nine.

Alternatives to Insurance

Former Lynchburg resident, Laura Slusher, has been a pet owner for most of her life and has been training dogs for agility competitions for several years. While she concurs that insurance may be beneficial for some pet owners, she has determined that, in her situation, it has been more practical to save on her own for her pets’ medical needs.

“I budget to put away a certain amount each month into a money market savings account. And just like I have a credit card for emergencies for me, I use that same credit card for emergencies for my pets. I spend a lot more than the average pet owner on care since my dogs are competitive athletes. … Over the years, I’ve spent thousands on everything from surgeries to chemotherapy to MRIs and myelograms,” Slusher said.

In her experience, pet insurance provided nothing more than a reimbursement of costs—the policy paid no more than what she had already put into the plan. Slusher recommends contacting your veterinarian before making any decisions involving pet insurance. Your vet will be able to provide you with the names of participating providers as well as the specific medical conditions, if any, that may be excluded under a particular plan.

Since some pet owners are not able to save a set amount each month for pet care, many veterinarians offer low or no-interest payment plans as an alternative to high-interest credit cards. Chase Health Advance, Care Credit and Citi Health Card are just a few examples. Not all veterinarians offer financing through these providers; however, some offer in-house low-interest financing.

The last thing any veterinarian wants to see is an animal go without necessary medical treatment because of the owner’s inability to pay. There are dozens of programs available to assist pet owners who are in need of financial assistance. These programs are largely funded by private donations and grants and each have unique requirements for qualification.