Financial Planning for Pet Illnesses: How Pet Insurance Can Help

Sep 30, 2024 08:22AM ● By Ruth Roberts, DVM, CVA, CVH, CVFT, NAN

Yana Tikhonova from Getty Images/CanvaPro

Although approximately 82 million U.S. households own a pet, only a small fraction—around 5.4 million—were insured by the end of 2023. A 2018 survey by the Access to Veterinary Care Coalition found that 28 percent of American pet owners encountered barriers to pet care in the past two years, primarily due to financial constraints.

Pet insurance can provide crucial financial support during unexpected emergencies or costly treatments, but deciding whether to invest isn’t always simple. Some pet owners are hesitant due to concerns about cost, policy complexity or the belief that insurance might not be necessary. However, many that do opt for insurance report significant benefits.

Eases Financial Worries

One of the most significant benefits of pet insurance is the peace of mind it provides, allowing families to focus on their pet’s health without constantly worrying about the financial implications. Patrons of Trupanion Pet Insurance have noted how insurance has made managing their pet’s health care easier because they have to meet the deductible only once per new condition, after which 90 percent of the costs are covered. Trupanion also covers alternative treatments like acupuncture.

Simplifies Decision-Making

AKC Pet Insurance covers preexisting conditions after 365 days—a crucial factor when a pet has medical problems at the time of adoption. If a pet later develops a related ailment that requires costly testing, the insurance will cover these costs, allowing a pet owner to make the best decision for their pet without financial constraints.

Promotes Preventive Care

Many insurance plans, like those offered by Pets Best, include coverage for preventive care such as check-ups, vaccinations and wellness visits, which encourages pet owners to maintain regular veterinary visits. By catching potential health issues early, pet owners can avoid more costly treatments down the road, ensuring that their pets live healthier lives.

Reduces the Burden of High-Cost Treatments

Facing a high-cost treatment can be daunting, and in such cases, an insurance company that provides this level of coverage can be a lifesaver, enabling pet owners to provide the necessary care without the fear of financial ruin. A study published in Animals found that pet health insurance significantly increased the amount spent at the veterinarian, with insured dog owners spending an average of $211 more on veterinary care compared to those without insurance. While extra spending appears to be an argument against the value of pet insurance, the study’s authors present it as a positive, noting that as pet insurance alleviates owners’ financial stress, it encourages them to invest more in their pet’s health care.

Saves Lives

The financial strain of veterinary care can often lead to emotional distress for pet owners, particularly when they are forced to make difficult decisions in an emergency. A 2020 study published in Frontiers of Veterinary Science showed that insured dogs had a significantly lower pre-surgical euthanasia rate (10 percent) compared to non-insured dogs (37 percent). This suggests that pet insurance allows owners to choose lifesaving treatments rather than face the heartbreaking decision of euthanasia due to financial constraints.

Pet Insurance Shopping Guidelines

Preexisting Conditions: Most pet insurance policies do not cover pre-existing conditions. To ensure coverage, enroll a pet in an insurance plan before any significant health issues arise.

Waiting Periods: Many pet insurance plans include waiting periods before coverage begins, during which illness or injury may not be covered.

Coverage Limits: Pet insurance policies vary in their coverage limits, including annual, per-incident or lifetime caps. Review these provisions carefully to understand the maximum amount the insurance will pay in different scenarios.

Deductibles and Reimbursement Levels: Policies differ in how they handle deductibles and reimbursement levels. Some may have higher deductibles but offer higher reimbursement rates. Choose a plan that fits both the budget and healthcare needs.

Alternative and Holistic Care: Not all plans include coverage for holistic treatments like acupuncture and chiropractic care, so the selected policy should align with the owner’s preferences.

Understanding Exclusions: Some insurance plans may exclude services for routine wellness care, dental cleanings or certain hereditary conditions. Understanding these exclusions can prevent unpleasant surprises when filing a claim.

Plan Flexibility: Some insurance providers offer customizable plans, allowing pet owners to choose their deductible, coverage limits and options. While this flexibility can be beneficial, it requires careful consideration to ensure the best value for the money.

Deciding whether to invest in pet insurance is a personal choice that should align with the owner’s financial planning, the pet’s health and the priorities set for their pet’s care. Pet insurance can be a useful tool for managing veterinary expenses, offering peace of mind when unexpected medical issues arise.

Ruth Roberts is an integrative veterinarian and holistic health coach for pets, as well as the creator of The Original CrockPet Diet. Learn more at DrRuthRoberts.com.