Many of us can't imagine life without our pets. According to the American Pet Products Association, nearly 70 million U.S. households include at least one dog and 45 million households include cats. And it's no surprise: their wagging tails upon our arrival home and purring snuggles after a long day at the office are the best kinds of welcomes. The relationships we forge with our furry friends can be some of the most supportive.
Still, pet ownership is no small responsibility. In addition to love, playtime, and regular exercise, they require the same annual wellness visits, vaccinations, food, and creature comforts that humans do, many of which can come with unexpected costs. Veterinary fees, in particular, are rising at the same rate as healthcare. So, when you're adding a new friend to the pack, pet insurance, like health insurance, is an important consideration.
Pet insurance helps reduce the immediate out-of-pocket costs for treatment related to certain illnesses and injuries: covered conditions typically include accidents, emergency care, medications, new illnesses (not pre-existing), dental problems, and cancer, among others. Increasingly popular among pet owners, almost 4 million U.S. dogs and cats were insured in 2021 – surging more than 25 percent over 2020 and double the insured rate in 2017 – according to the North American Pet Health Insurance Association (NAPHIA).
But is it worth it? That's a difficult question to answer as it's informed by a number of factors, including your pet's age, gender, species, breed, and location. Considering those factors, insurance plan premiums can vary widely, ranging from as little as $20 a month to nearly $100. According to the NAPHIA, accident and illness policy monthly premiums for cats and dogs average around $30 and $50, respectively. The most significant variations in rate are related to your pet's age and breed, with rates generally increasing, regardless, as your pet ages. Generally intended for unexpected health expenses, most pet insurance policies won't cover spay or neuter surgery, vaccinations, annual checkups, pre-existing conditions, or teeth cleaning either. Policies also typically require that the insured pet have a recent vet visit on record and include waiting periods with restricted coverage provisions for accidents, illnesses, and orthopedic conditions.
As with health insurance, policies can also be customized with regard to annual limits, deductibles, and reimbursement levels. Greater annual limits, lower deductibles, and higher reimbursement levels will come with the highest premiums. For instance, a $1,000 surgical procedure under a plan with a $500 deductible and 80 percent reimbursement, would cost $600: $500 for the deductible and 20% toward the covered surgery.
For questions, call or contact Wilson, Timmons & Wallerstein, Inc. today.