Pet Insurance 101
Confused by all of the pet insurance lingo? Here's a quick glossary to get you up to speed on all things pet insurance.
Annual Deductible: The dollar amount of medical expenses that you have to pay before the insurance company pays for your claim.
For example, if you cat has surgery and you have a $2,000 deductible, you must pay that amount first before the insurance company pays the remainder.
Keep in mind that you only generally only have to meet your deductible once per calendar year.
Benefit: Amount payable by the insurance company to a pet owner when he or she suffers a loss.
Claim: What you as an individual request of the insurance company.
Generally this is a request for payment for animal medical services.
Co-pay: The small fee that you have to pay when you arrive at your veterinarian's office.
Exclusions: Some pet insurance policies only cover emergency care or particular veterinarians.
Make sure you read the fine print on your policy so that you fully understand the exclusions of your particular brand of pet insurance.
Per Incident Deductible: Some insurance plans require that you pay a per-incident deductible.
For example, if your dog is diagnosed with heart disease, you pay that deductible the first time the dog goes into treatment.
You do not, however, pay another deductible if further treatment is required for the same incident.
Surcharges: Some pet insurance policies include a surcharge.
These surcharges are usually attached to policies that include multiple pets, elderly pets, or previously-ill pets.
Pet insurance isn't as complicated as you may think it is.
Although there are many different companies with different plans, the basic idea is the same across the board.
Veterinary pet insurance is known as indemnity insurance.
You pay a monthly fee, between $10 and $50 per month.
Then you cover the cost of care upfront, file a claim with the insurance company, and receive reimbursement for a portion of the costs within 30 days.
Usually you need to pay a deductible first-$50 or more-and then a copayment, usually 10-50 percent.
Some companies implement an annual limit for the policy, while others stipulate you can spend a certain amount across the policy's lifetime.
When you sign up for pet insurance you will have a waiting period before coverage starts.
The time frame may be different for accidents and illnesses, usually no more than a month.
Pet insurance companies do this to ensure people don't get coverage just to make a specific claim.
It's just that simple.
In reviewing different companies, look carefully at the list of exclusions.
Some companies won't cover pre-existing or hereditary conditions.
Also, make sure the provider is licensed in your state so you won't be left with unpaid bills if something happens to them.
Veterinary procedures can be prohibitively expensive, sometimes ranging into to thousands of dollars.
Pet health insurance helps shoulder some of the burden.
Once you narrow your search down to a few pet insurance providers you'll want to compare them side-by-side to see which offers the most at the best value.
Before making the decision, read the fine print for the following:
Annual Deductible: The dollar amount of medical expenses that you have to pay before the insurance company pays for your claim.
For example, if you cat has surgery and you have a $2,000 deductible, you must pay that amount first before the insurance company pays the remainder.
Keep in mind that you only generally only have to meet your deductible once per calendar year.
Benefit: Amount payable by the insurance company to a pet owner when he or she suffers a loss.
Claim: What you as an individual request of the insurance company.
Generally this is a request for payment for animal medical services.
Co-pay: The small fee that you have to pay when you arrive at your veterinarian's office.
Exclusions: Some pet insurance policies only cover emergency care or particular veterinarians.
Make sure you read the fine print on your policy so that you fully understand the exclusions of your particular brand of pet insurance.
Per Incident Deductible: Some insurance plans require that you pay a per-incident deductible.
For example, if your dog is diagnosed with heart disease, you pay that deductible the first time the dog goes into treatment.
You do not, however, pay another deductible if further treatment is required for the same incident.
Surcharges: Some pet insurance policies include a surcharge.
These surcharges are usually attached to policies that include multiple pets, elderly pets, or previously-ill pets.
Pet insurance isn't as complicated as you may think it is.
Although there are many different companies with different plans, the basic idea is the same across the board.
Veterinary pet insurance is known as indemnity insurance.
You pay a monthly fee, between $10 and $50 per month.
Then you cover the cost of care upfront, file a claim with the insurance company, and receive reimbursement for a portion of the costs within 30 days.
Usually you need to pay a deductible first-$50 or more-and then a copayment, usually 10-50 percent.
Some companies implement an annual limit for the policy, while others stipulate you can spend a certain amount across the policy's lifetime.
When you sign up for pet insurance you will have a waiting period before coverage starts.
The time frame may be different for accidents and illnesses, usually no more than a month.
Pet insurance companies do this to ensure people don't get coverage just to make a specific claim.
It's just that simple.
In reviewing different companies, look carefully at the list of exclusions.
Some companies won't cover pre-existing or hereditary conditions.
Also, make sure the provider is licensed in your state so you won't be left with unpaid bills if something happens to them.
Veterinary procedures can be prohibitively expensive, sometimes ranging into to thousands of dollars.
Pet health insurance helps shoulder some of the burden.
Once you narrow your search down to a few pet insurance providers you'll want to compare them side-by-side to see which offers the most at the best value.
Before making the decision, read the fine print for the following:
- How much is the deductible for illnesses and accidents (the portion you need to pay before the pet insurance company will reimburse you)?
- Does the plan allow you to see any veterinarian?
- How long will you need to wait to receive reimbursement after you file a claim?
- How long is the waiting period (the time you need to wait for coverage to kick in after you buy the plan)?
- How much coverage do you have for emergency care-unexpected accidents and illnesses?
- Does the pet insurance plan implement annual caps? This means you're only allowed a certain amount in reimbursements annually, either across the board or for a specific illness.
- Does the company implement a lifetime cap? This means you can only receive a predetermined amount in reimbursements for the plan's lifespan.
- Does the company cover hereditary or congenital diseases? Hereditary conditions are passed down from parents, while congenital conditions are pre-existing at birth but may not have manifested yet.
(For example, VPI Pet Insurance excludes these breed-specific hereditary conditions). - Does the company provide different coverage or charge more for older pets?
- Does the plan have national coverage (if you travel with pets often)?
- Does the plan offer a multi-pet discount (if you have more than one pet)?