Pet Insurance- Is it worth it?

    So your dog just ate your sock, now what?

    In case you have not seen my facebook photos yet, we have a puppy named Arya who we absolutely love.  When we adopted her back in November I immediately applied for pet insurance.  I know how expensive dogs can be and never wanted money to be a factor in any medical decisions would we have to make for Arya.  So like any financial planner would, I ran some numbers and decided having pet insurance would definitely save us lots of money in the future IF Arya ever did need any major medical care.  Since we applied for the pet insurance when she was a puppy it was really cheap.

    Pet health care costs are on the rise just like our health care is. Everything from routine care to dog surgery costs pet owners more than $11 billion dollars each year.* A simple tooth extraction can cost up to $1,000.* You can purchase dog insurance to help cover the costs of dog or cat surgery and other pet related health care to try to help avoid the shock of receiving an unexpected $5,000 vet bill. That is exactly what we did.

    (*Source- www.vetinfo.com)  Restrictions and limitations may apply.  Please read policy carefully before purchasing.

    Here are the numbers I ran for our specific situation:

    Facts:

    • Average surgery for dogs is about $1,200-$5,0001
    • The median life expectancy of dogs is 12.8 year2
    • Arya was 4 months old when we got her insurance

    Sources:

    • www.vetinfo.com
    • Bruce Fogle, DVM, Caring for Your Dog: The Complete Canine Home Reference

    Arya’s Pet Insurance Details:

    • $274.40 per year
    • Deductible $100 per year
    • Coverage 80%
    • Max vet fees covered $8,000 per year

    Examples of when the insurance will save me money, cost me money and when I would actually breakeven by owning the insurance:

    I lose if the only vet bill I have ever is $3,000.

    • $3,000 vet bill
    • 80% covered
    • $2400
    • -$100 deductible
    • $2300 Total covered by insurance
    • $700 my out of pocket costs
    • + $3,512 Total premiums paid for average life expectancy of 12.8 years
    • =$4,212 My Total out of pocket paid over Arya’s life

    I win if the vet bill I have is $6,000

    • $6,000 vet bill
    • 80% covered
    • $4,800
    • -$100 deductible
    • $4,700 Total covered by insurance
    • $1,300 my out of pocket costs
    • + $3,512 Total premiums paid for average life expectancy of 12.8 years
    • =$4,812 My Total out of pocket paid over Arya’s life

     Breakeven $4,500

    • $4,500 vet bill
    • 80% covered
    • $3,600
    • -$100 deductible
    • $3,500 Total covered by insurance
    • $1,000 my out of pocket costs
    • + $3,512 Total premiums paid for average life expectancy of 12.8 years
    • =$4,512 My Total out of pocket paid over Arya’s life

     

    So at the end of the day, just like any other insurance, you can see how it will really help protect you with the bigger unexpected events.  For us, its knowing that at the end of the day we will have a little more peace of mind knowing that money will never play a factor in Arya’s medical decisions.  While we cannot prevent from all expenses being covered, at least I feel better knowing that some expenses will be covered because we got her pet insurance.

    Thanks for watching my Money Byte, remember to Subscribe to this youtube channel, follow me on twitter and like my facebook page.  See you next time! This is Britt Castro of FinanciallyWiseWomen.com

    If you found this video valuable make sure you share it with your women friends and sign up to the Financially Wise Women website to get more free resources and tools to help you on your journey toward becoming financially wise.

    http://www.financiallywisewomen.com/
    Britt Castro, CFP® and Founder of Financially Wise Women
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    The LPL Financial registered representative associated with this page may only discuss and/or transact securities business with residents of the following states: CA, FL, WI.  CA Insurance License #0F33895.  The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

     

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