Whether you want to protect yourself from the financial loss that could result from the death of your prize-winning racehorse, or you simply want to make your golden retriever’s veterinary bills more affordable, you may want to look into purchasing some form of pet insurance. For the most part, pet insurance refers to two types of insurance: mortality insurance and health insurance. These two types of pet insurance may be sold as separate components or together.
Pet mortality insurance
Most of us own animals purely for companionship. However, if you own an animal that has financial value to you (a racehorse), is rare (an exotic animal), or is specially trained (a guide dog for the blind), you may want to consider purchasing pet mortality insurance.
Pet mortality insurance is similar to life insurance for humans. You (the owner) would take out a mortality insurance policy in an amount equal to the value of your pet’s life.
(For example, if you purchased an exotic bird for $ 5,000, you would insure the bird for that amount.) When your pet dies, you would collect on the policy.
The cost of pet mortality insurance is usually calculated as a percentage of the value of the animal. So, when you purchase a policy, you’ll need to show documentation (e.g., breeding records) that substantiates the value of your animal.
Pet health insurance
When an animal is seriously injured or has a life-threatening illness, pet owners are often forced to choose between paying high veterinary bills and euthanasia. Even routine veterinary care (e.g., vaccinations and physicals) can add up, especially if you have more than one pet.
As a result, an increasing number of pet owners are purchasing pet health insurance to help pay for the cost of veterinary care.
Just like human health insurance, pet health insurance has annual premiums, deductibles, co-payments, maximum payouts, and pre-existing condition limitations. Policy types vary and cover a wide range of veterinary care, from routine examinations to treatment for serious illnesses like cancer.
The cost of pet health insurance depends on different factors, such as species, age, and type of policy, but may be less expensive than paying for veterinary bills on your own. And you may even be able to get a reduced rate if you insure more than one pet with the same company.
Where can you get it?
Pet insurance is a relatively new insurance product. However, an increasing number of insurance companies are getting involved in the pet insurance market, and some employers are even offering it as an employee benefit. If you’re interested in obtaining pet insurance, ask your veterinarian or local breeder’s association, look in pet magazines, or search the Internet for more information.
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