Pet Health Insurance: Is It Worth It?

pet's health insuranceA recent survey conducted by the American Pet Products Association uncovered some interesting statistics:

  • 62 percent of U.S. families own a pet
  • $13 billion is spent each year on veterinary care
  • Under two percent of pet owners carry health insurance coverage for their animals

A few facts about pet insurance …

  • It's more like car insurance than human health insurance – it's a fee-for-service model designed to help with unexpected healthcare bills, not routine costs like annual check-ups. Some companies do offer preventive care for an additional monthly cost.
  • No pet health insurer covers pre-existing conditions, but many cover up to 90 percent of eligible costs after client co-pay.
  • All plans require a deductible, pay a percentage of the total cost, and have annual reimbursement limits.
  • An average plan for a young pet (under six years) runs $30 to $40 per month for dogs, 25 percent less for cats. Preventive add-on policies, when available, cost another $15 to $20 a month.
  • Coverage is by reimbursement to the pet owner only, so clients must incur the expense themselves and then submit claims to the insurer for repayment. 

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