Health: Pet insurance

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A decade ago, had you told someone you were considering pet insurance for your dog, they'd have looked at you like you had two heads. Why not go ahead and buy him braces, too?

Today, pet insurance is an industry in the hundreds of millions of dollars, with not only vets but the ASPCA and the American Kennel Club promoting it. The question is, is it right for you?

Is it worth it?

But the fact is that today, pet medical care rivals what's available to humans in complexity and cost. For example, an MRI is a diagnostic tool once reserved for humans but now available for pets as well--at an average cost of $1,200. Sophisticated procedures such as radiation therapy, can start at $900 and quickly reach $5,000.

And it's not as if it can't happen to you. Statistics show that one out of three pets will need emergency treatment every year, and two out of three experience at least one major health crisis in their lifetimes.

Given these catastrophic and skyrocketing costs, and with monthly premiums as low as $10 for some pets and plans--they average around $30--pet insurance may be a worthwhile option for you and your animals.

How does pet insurance work?

In many ways, pet insurance plans aren't much different from what's available for humans. Most cover accident and/or illness, and some have preventive medicine options available as well. They all have a deductible, and all have exclusions for certain preexisting or breed-common conditions.

Be sure to read the fine print. For instance, most act just like human insurance companies and cover only what they deem eligible less deductable and co-pay. In other words, your reimbursement may be far smaller than you think it should be. Here's a look at some of the major suppliers.

• VPI has a standard plan that doesn't cover preexisting conditions, but it does cover cancer and sterilization. Coverage increases with the monthly premium. A sales person can give you a quote. (Note: better to work with a live person and ask lots of questions, than go through the site.)
• Pets Best has a limit of just under $100,000 with a $75 deductible. It doesn't cover preexisting conditions, but it does cover cancer, and it offers a basic wellness plan as an add-on. Monthly cost is around $35.
• Shelter Care has no benefit limit and no deductible, and it offers discounts for more than one pet and for microchip add-ons. It doesn't cover preexisting conditions or sterilization, but it does cover cancer. Monthly cost is around $30.
• PetCare has no limit and a $50 deductible. It doesn't cover preexisting conditions or sterilization, but it does cover cancer. The monthly cost is around $30.
• Embrace Pet Insurance has very low benefit limits compared to most other plans--$2,000, $5,000 or $10,000 a year--as well as a high $100 per visit/$500 annual deductible. It doesn't cover preexisting conditions or sterilization, but it does cover cancer, and it also has plans that cover genetic conditions. The monthly cost is around $25.
• ASPCA pet health insurance offers a number of plans, from those that cover accidents and injuries only up to lifelong plans for older or chronically ill dogs. The midrange plan has a limit of $8,000 per year and $1,500 per incident, and it doesn't cover sterilization. The monthly cost for this, the standard plan, is about $30.

Ask the right questions before you buy

• Do I pay first, then get reimbursed? Unlike almost all human insurance, you will probably have to pay your dog's medical bill at the vet's office, and then get reimbursed by your pet insurance company. Make sure that's the case, and learn just how simple (or not!) the claims process is, and the average time it takes to get your reimbursement check.
• Can I use any vet, or a network of providers? You've had to ask the same question for your own health insurance: can I go to any doctor or just a preferred provider? If it's a PPO, make sure your favorite vets are on the list.
• How hefty is the deductible? Usually they're low--around $50--but you'll want to double-check. And see if there's a limit on the number of claims or visits you can make in a year (or over the life of the policy).
• Does the insurance plan end when my dog reaches a certain age? Many policies are designed only for young, relatively healthy dogs. You may need a different policy entirely for an older dog or one with a chronic condition (and those are available, too).
• When does coverage begin? Does it kick in immediately, or does it require a visit to the vet first?
• Is there a cap on coverage? It can be as low as a few thousand dollars annually or as high as tens of thousands--but know before you sign.
• How long is the policy in effect? Unlike human health insurance, pet policies tend to be short-lived; most are only a year long and are renewable only with the company's approval. Most reputable companies won't count illnesses that were treated during the previous coverage period as preexisting conditions, but you'll want to be sure about that--and again, your dog may not requalify simply because of age. Check that out.

What to do next

Work with your favorite internet search engine; you'll easily find a number of independent sites that will help you find and compare various insurance plans and carriers. And it's probably worth a call to your veterinarian's office to find out what the staff's experience has been with various insurance companies. Give some thought to your dog's specific needs, too, like chronic conditions and age. And don't overlook the value of preventive care coverage, especially for younger pups.

Once you've done your homework, it's as easy as a phone call or an online sign-up to get things rolling.