Alright, hey everybody, so today I thought that I would cover a topic that, in all honesty, I've been asked to cover many many times before, and that's. Whether or not pet insurance is a worthwhile thing to get for your animal, so this is the topic that's, really difficult to cover, because pet insurance varies between different locations.
It also depends on the age of your animal, the breed of your animal, and all sorts of other circumstances. So this is going to be a general video. It's, going to talk about pet insurance, what it is, what are some of the limitations to getting it, and my personal opinion on whether or not it is a worthwhile thing to get so let's, dive right into it.
Ok, so what is pet insurance to begin with, so pet insurance is going to be a contract that you can enter into with an insurance company, and basically, what you do is you pay a monthly premium usually or you can sometimes get a plan that has an Annual price and you're gonna pay that amount monthly or annually to keep your animal on this insurance plan.
The plans are going to completely differ based off on first and foremost, what you want to be covered. So if you want the basic package, do you want it to cover a bit more? It's, also going to depend on the breed of your animal, because certain breeds are predisposed to certain conditions.
It's going to depend on the age of your animal. It's, probably going to cost more. If you start at an older age versus a younger age and it's, also going to really depend on the location that you're at now.
As with all other insurance companies, you're, going to have a deductible. So this thing is basically the amount of money that you're, going to have to pay out of whatever happens to your animal before the insurance company jumps in and starts covering costs.
So, for example, if you have a dentist that you have to do on your dog and it costs you $ 1,500, if the deductible is $ 500, you're gonna have to pay those five hundred dollars and then the insurance company will cover Whatever percentage is agreed upon in their contract of the remaining amount of money, so you're, always going to have a deductible.
You're, always going to have to pay that deductible before the insurance company will pay anything for your animal, and then the next thing that people don't really realize sometimes with animal insurance.
Is that you always pay upfront. So when you go and you have an emergency situation and you go to the vet and you have a bill that comes in you have to pay for that, so you're, going to have to be able to cover that cost.
Then you submit a claim to the insurance company and then they will decide whether or not their plan covers whatever you're claiming for so it's, not a kind of like an immediate fix. You're, going to have to have the funds to be able to pay for the things that happen, anyways, or access to some sort of a credit card, or something that you can use to cover the cost of whatever happens to your animal.
And then wait it out until the insurance company decides whether or not your claim is something that's acceptable okay, so it's really hard to figure out whether or not pet insurance is something that's worthwhile.
I can only give you an example of something from my area, so my location is near Toronto, Canada and I'm gonna be looking at what it's, going to cost to insure a one-year-old American Bulldog, and this is for one year of coverage, it's for a ceiling of five thousand dollars, which is like the basic coverage plan.
They'll only cover five thousand dollars of emergency costs, so this doesn't include wellness. It doesn't, include vaccines or anything else like that now, the deductible on average, for something like that is around five hundred dollars, so that's.
What you're, going to have to pay before the insurance company will cover anything, and the baseline package deal is around 80 % coverage, which means that the insurance company, after that five hundred dollars, will cover 80 % of the costs incurred.
And you cover 20 % of those costs, so on average, something like that is going to run you around seventy to a hundred and five dollars a month, so that's, going to be the monthly premium that you're gonna pay every single month so when we start tallying that up and I'- ve got my notes right here.
The cost per year is going to be between eight hundred and forty dollars and one thousand two hundred and sixty dollars. So that's on average each year you're, going to be paying that and that's, not including any increases in your premium.
That may result from claims that you make okay, so we & # 39. Ve got our American Bulldog and let's just compare what it would cost for a very normal completely normal year. You don't. Have any weird things happen to this dog on one side, you & # 39.
Ve got the people that are paying the pet insurance. So let's say in that year. You need to do a wellness exam, you need to do vaccines and you probably get some sort of a flea and tick prevention for your dog.
Let's say that runs you about $ 200. Now the people that are paying for that dog. If that's, all that happens to that dog in that year have that $ 200, but on top of it they're paying around let's, take an average of $ 1,000 a year for pet insurance, so those people are paying $ 1,200 for that dog.
On the other hand, you & # 39, ve got owners that have the same dog and they don't pay pet insurance. They're only paying about $ 200 for the wellness check and for vaccines and for the tick and flea prevention, so they're $ 1,000 richer than the family.
That's, covering the pet insurance for that animal. That's for a completely normal year. Now pet insurance is created for those extreme scenarios right. So let's. Take a look at a scenario where you have some sort of medical emergency happen to your animal, so we're, taking the same American Bulldog, one-year-old, and unfortunately, this year you have an accident.
The dog gets out of the fence and runs onto the street and gets hit by a car. So on one hand you & # 39. Ve got the people that are paying $ 1,000 for pet insurance, so you still have that wellness exam, the vaccines, the flea and tick prevention that you're, covering none of the insurance, is going to cover that so they're paying For those $ 200, but now you have three thousand five hundred dollars in medical bills, for x-rays for surgery.
Let's, say the dog ruptured, its cruciate ligaments, and you have to have orthopedic surgery on the dog like a lot of expensive stuff is happening, and so you get this bill for $ 3,500. Now your deductible on the insurance is $ 500.
You're, going to be paying the full $ 500 that leaves $ 3,000 of the bill that the insurance company will pay 80 % of. When you look on average. In that situation, people with pet insurance are going to be doing a lot better.
So after tallying up all of the costs on my little piece of paper here on average, in that specific situation, the people without insurance are gonna pay, the full three thousand. Seven hundred dollars for the wellness check for the vaccines for the flea and tick prevention and the three thousand five hundred dollar bill that they got for this emergency situation.
The people with pet insurance, on the other hand, are paying the thousand dollars in pet insurance that year, but they only wind up paying a thousand three hundred dollars of veterinary costs that year, because of the insurance that they have.
So there. Paying two thousand three hundred dollars versus the people that don't have insurance that are paying three thousand seven hundred dollars. So it's, actually, not that big of savings that you get, but it is a saving.
So when we look at that specific scenario which is going to be completely different, based on what plan you get, what coverage you get, what animal you have it's very important to remember that in the vast majority of situations, pet insurance companies Are businesses right? They're, not charity.
They're, not looking to get rid of more money. They're, actually rolling the dice and betting that you are going to pay more money into the insurance company. Then you're gonna get back that's, how pet insurance companies work.
You have to remember that what pet insurance companies show. You are a glossy brochure right like it's, basically the best things that they have that are available to you. But there's a lot of fine print that they don't necessarily advertise.
But you might be very shocked about when all of a sudden, you have to deal with a situation and you're, claiming a cost, and you realize you're, not covered there's, a lot of things that you really need to look into first before signing on that dotted line and entering into a contract with an insurance company, and the first thing the biggest thing and the number one reason why claims get denied is pre-existing medical conditions now pre-existing medical conditions, you might think, is Just medical conditions that your dog doesn't have right now, but as they get older, they might develop and that's, not necessarily the case.
So you really have to dive into what it means when they talk about pre-existing medical conditions because some insurance companies actually consider pre-existing medical conditions as conditions that are predisposed in the breed that you have so, for example, if you have a German Shepherd, the insurance company Might not cover costs incurred due to hip dysplasia, because the breed is more predisposed to hip dysplasia with an Australian Shepherd.
They may not cover costs associated with Kali. I anomaly because it's, something that the breed is predisposed to begin with. The other thing is lifetime coverage limits. Certain insurance companies have a coverage limit where they will pay for the first year of your dog developing a condition, but after that year they will stop paying for anything any costs that are incurred for that.
So, if for example, if your dog develops cancer or lets, say your dog gets epilepsy. That's a condition that's, probably going to affect them for the rest of their life. Some insurance companies have limits where they & # 39.
Ll only covers a certain amount of time after that condition is found or a certain amount of dollars that they'll cover after a condition found. So you really have to understand where that limit is whether or not the insurance company will only cover the costs of medication.
For your dog that has epilepsy for the first year and then maybe they don't cover that specific condition anymore after that year is done. There also can be limits on the amount of money that they'll cover for each biological system, so in the fine print they may say that they're only going to cover $ 5,000 for cardiovascular system issues right, and so your Dog, if you have a chronic condition that you're, creating throughout that animals lifetime, you're, going to hit that ceiling number very quickly, and then you're, not going to be covered after that anymore.
So you really want to know what limitations they have for the amount of money that they'll cover for each biological system. If there is a cutoff point, then you need to understand those cutoff points before you sign a contract with an insurance company and then the final thing that's really important to know is that the insurance companies always retain the right to increase your premiums, so if you have a dog that has a chronic issue - and you start to put in a lot of claims with them, they retain the right to increase the premium for you.
So that means increasing the amount of money monthly that you're. Going to have to pay to keep on the insurance plan, so in the end, is it worth it? The truth is that you really don't know if it's worth it without having the ability to look into the future and figure out what you're, going to have to deal with with your dog.
If you never have any issues, or if you have one emergency in the dog's, lifetime one or two emergencies, the majority of pet litigation. Lawyers that I read up on were suggesting that the best thing to do is to take that 70 to 105 dollars a month, that you would be paying into pet insurance and put it into a savings account and create savings account for your animal.
That is going to be a better situation to get into. If you have the ability to do that now, a lot of people don't have the discipline to put that money into a savings account and that's perfectly fine, and sometimes people really do need an insurance company.
You have to pay this every single month and that's. The way that you know that your dog is going to be covered for emergency situations and that's. Fine too, a pet insurance company can be a really good option for people like that that don't necessarily really have the focus to shove, that hundred and five dollars or seventy dollars into savings account for their animal every single month.
But for those that are really interested in pet insurance, it's very, very, very important to look into the fine print understand what you're buying before you sign anything, because the last thing that you want is to again fall into A false sense of security believe that you're covered for something and then realize that the pet insurance company isn't gonna cover a single thing of it, and you've, been paying $ 1,000 a year for Something that isn't going to help you in the critical situation that you find yourself in these are going to be questions that will save you a lot of grief if you want to go the pet insurance route, so number one is: is their Coverage restrictions on the age of the animal, so is there a certain age at which the animal will age out of the plan? Is there a certain age where the plan will not cover specific things anymore? The second thing is: is there ever a maximum payout? Is there a ceiling to the amount of money that they will give you? So if you're signing a basic plan, you need to understand that, for example, in the sample that I gave you guys with the American Bulldog, that ceiling was $ 5,000.
The insurance company will not give you a penny more than that $ 5,000. You need to understand what's, the maximum payout of your insurance. So the third thing is: how much are you gonna pay per claim? So basically, how much will I? You really need to understand how solid that percentages that they're, going to cover whether or not that percentage can move based on the claims that you submit all of that kind of stuff.
The fourth thing, and it's, the most obvious thing: what isn't covered in your plan? You need to understand everything that is not covered in your plan, all right. Everyone so hopes that this was very helpful for you.
I hope that it shed some light on the pet insurance world and it's. It's a very personal decision for each person. Some people feel that it's worth it. Some people feel that it's, not worth it. Hopefully, this was able to give you a bit more background to make an informed decision for yourself, and I hope that it was helpful.
So I will see you guys in another article very soon and take care bye. You