Is Pet Insurance a Good Idea?

Over the years, as technology has advanced, so has the cost of veterinary care. Vets today offer treatments such as MRIs, ultrasounds and CAT scans (no pun intended) that were unheard of just a few years ago. Heart surgery, kidney transplants, laser surgery and even chemotherapy are among the many viable options available to treat ill or injured pets. A veterinary bill can now run you thousands and thousands of dollars, making pet insurance more important than ever for US pet owners.

Pets also need more attention these days simply because they are living longer, a result of better preventative care, medicine, vitamins and food. In 1987, about 32 percent of the nation's dogs were over the age of 6. Now, 44 percent have passed that threshold. As is the case with humans, pets' bodies wear out the older they get, and they're not just experiencing the typical aches and pains of old age. They are also developing chronic diseases, such as cancer and diabetes that require costly medical treatments.

Pet Insurance is not for everyone

Not all pet owners would benefit from pet insurance. One type of pet owner that would not benefit is someone who would put their pet to sleep instead of spending large amounts of money to save it.

Sometimes pet owners with pet insurance will end up paying more out of pocket than they would have had they just put those premiums into a savings account, but this is assuming your pet stays healthy for a long period of time. Pet owners that have the financial resources and discipline can insure their own pets by making monthly deposits into a savings account for future veterinary costs. This allows the owner to save money if their pet does not incur expensive medical bills during its lifetime, but is not recommended for most people.

Choosing the right pet insurance company

For most pet owners, pet insurance is the best way to protect themselves from financial hardship caused by a pet's injury or sickness. The increased popularity in pet insurance has caused a surge in companies to enter the US market in recent years and each pet insurance company offers slightly different plans, making it difficult for pet owners to choose among the different plans.

In July 2008, Illinois Health Agents, an independent insurance agency, reviewed the most popular U.S. pet insurance plans from 12 different companies and ranked them on price, benefit schedule, network availability, and overall value. Surprisingly, the plan from Embrace Pet Insurance was best or tied for best in all five categories based on the following advantages:



1. Claims are based on the usual, customary and reasonable (UCR) method of reimbursement - not a benefit schedule. Most pet insurers pay claims based on a benefit schedule, which are determined by the insurance company and limit the amount of payout. UCR policies tend to deliver more generous payments since UCR takes into account variables such as increased pricing for emergency care and regional price differences. With Embrace the customer - not the insurer - chooses the annual maximum payout. This guarantees fewer surprises when seeking reimbursement.


2. They cover congenital and hereditary conditions. These can cost a lot to treat, and almost all companies exclude them.


3. They cover a chronic and recurring condition, which determines whether the plan will continue paying for treatment of a single illness over several years. Many companies will limit treatment of a single illness (like cancer) to a single year or per-incident claim limit, but Embrace will cover them for the duration of the illness and without a per-incident claim limit.


4. They have received excellent customer feedback. The popular, independent website petinsurancereview.com rated Embrace Pet Insurance the "Best U.S. Pet Insurance Company" for 2008.

Ryan Carroll is an insurance consultant for Illinois Health Agents, an independent insurance agency specializing in health, dental, and related benefits for individuals, families, and small businesses in Illinois.

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