What to Consider Before Buying Pet Insurance - Money Tip Tuesday

For many of us, our pets are a part of our family. They bring us excitement and comfort that we enjoy for many years. But pets also come with costs.  

With all the costs you need to dish out for pets, like grooming, food, supplies and more, another expense to consider is pet insurance. With the costs already associated with owning a pet, is it worth paying for pet insurance too?  

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Transcript:

Welcome to Money Tip Tuesday from the Making Money Personal podcast. 

When it comes to affording the things we want in life, our pets likely sit close to the top of our list.  

But as pet owners often learn, having a pet comes with responsibilities that can take up a lot of resources. One of these responsibilities is keeping your pet’s health which may wind up costing you money in vet bills and care.  

The reality is that pet bills can be expensive.  

It can be devastating when your pet faces a crisis that may leave you struggling to decide between your pet’s life or your financial health. 

Let me tell you a story. A friend of mine got a new puppy and within weeks of getting this little bundle, the puppy had a serious emergency and my friend had to rush him to the emergency vet. The vet was able to save the puppy’s life, but my friend was left with a bill for over 60K for all the costs associated with the care and treatment.  

Regardless of whether you think that’s enough or too much money to spend on an animal, before you pass any judgement, ask yourself how much you’d be willing to pay for your animal and whether it would be worth paying for coverage in case a situation like this arises. 

There’s no right or wrong answer on whether to buy pet insurance, but if you’re serious about dishing out money for expensive care and treatment, it may make sense to purchase pet insurance. 

If you choose the right option, it can give yourself a healthy financial buffer to avoid getting buried in pet medical bills.  

There are three types of pet insurance coverage you should be aware of.  

The first is accident-only. This covers only accidents and includes any testing, procedures and medications related to the accident. It can cost roughly $130/yr for cats and $239/yr for dogs. 

The second is accident and illness. This one includes everything covered in an accident-only policy. It also covers common and serious illnesses your pet may endure as well as certain hereditary conditions. It covers any testing, procedures and medications related to anything from accidents to illnesses and can cost roughly $342/yr for cats and $583/ for dogs. 

The third is routine wellness. This covers routine and preventative care as well as wellness care like routine checkups, vaccines, flea and heartworm prevention. It does NOT cover illnesses and accidents and is considered more of an optional add-on to existing plan coverages 

 If you’re considering pet insurance, here are a few ways to determine if pet insurance is worth it for not only your finances but also your four-legged friend.  

Pet insurance does depend on a few things.  

• It depends on the type of pet you have and it’s specific needs. Larger animals like dogs will generally cost more in premiums than smaller animals like cats. In many cases, companies do not cover animals other than cats or dogs so you may have to do some hunting to find a company that might cover your specific pet.  

• It depends on how much are you comfortable spending on pet expenses. Sometimes a $1,000 bill is doable, but is a $10,000 bill worth it? If you don’t want to pay for pet insurance, you may want to put some money aside for your pet in case something does happen. Determine your financial limit then set up a sinking fund specifically for pet costs so you can cover any unexpected issue that may occur. 

• It’s depends on how old your pet is. The age of your pet will determine how much you’ll pay in premiums. The younger your pet is when you buy insurance, the cheaper your premium will be. 
   
• It depends on what type of breed your pet is. Some pet breeds are more prone to illnesses and health problems than others. If your breed is more likely to develop certain medical issues with age, you may need to prepare for some of the health care costs associated with those genetic pre-dispositions that can show up down the line.  

• It depends on whether your pet has pre-existing conditions. Not all insurance may cover these, so make sure you know before signing up for something that won’t cover your costs. 

  

Taking care of your beloved pets and your financial health should both be at the top of your priority list. That’s why it’s important to weigh the options to make sure you take the best care of not only your pet’s health but your financial health as well.  

If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org.  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  

Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  

Have a great day!