| Pet insurance is gaining
popularity nationwide, spurred by rising veterinary costs, more
advertising and pet owners' growing tendency to treat their pets
like family members, according to Packaged Facts, a consumer data-gathering
group.
Revenue for the U.S. pet insurance business hit $160 million
last year, up 25 percent from the year before. But only 2 percent
of North American pet owners had signed up for the insurance in
2005, the group says.
So should you join the small-but-growing pack?
Start with your needs
Pet health plans vary widely depending on benefits and the animal's
species, breed and age. The restrictions are complicated and often
similar to limits that apply to human health insurance, such as
pre-existing conditions or advanced cancer treatments.
A basic plan covering general maladies can start at $15 a month
for a dog and $10 for a cat. If you want your plan to help pay
for flea protection or offer a reward if your pet is lost, expect
to pay about $70 or more.
Be sure to read the fine print and sign up only with an established
company.
Purebred pets, for example, are at higher risk for genetic diseases
and problems. The hip dysplasia that plagues some German Shepherds,
or Persian cats and their polycystic kidney disease, can cost
thousands to treat.
But any pet may have an accident or develop a disease.
Evaluate the costs
An average owner with a healthy, medium-to-large dog should expect
to pay $25,000 in food, vaccinations and pet-related expenses
over the lifetime of the animal, says Jim Wilson, a Pennsylvania
vet and lawyer who crunched data from several animal-care associations
to determine the true cost of pet ownership.
The number jumps to $35,000 if the dog develops diabetes or another
chronic problem.
That's why Dr. Wilson recommends pet insurance. He operated his
vet practice for 16 years before becoming a consultant for veterinarians
needing business and legal advice.
"When owners with pet insurance would come in to my practice,
we didn't talk about money. We talked about what that pet needed,"
he says.
But the pet owner's fiscal philosophy is also a factor. If you
have enough in the bank to cover an unexpected vet bill, then
it might not be worth buying insurance your pet may never need.
Prepare for the worst
But if you're the type who'll do anything for your pet and you're
short on cash, it might be worth it.
According to the results of a veterinarian survey published in
2003 in the trade journal DVM Newsmagazine, most pet owners will
stop treatment if the medical bill exceeds $961.
Since the SPCA began offering the free insurance in 2002 through
Petfinder.com, 30,000 adopted pets have been insured and $88,000
in claims paid out.
"You prepare for the worst but always hope for the best."
WHICH PLAN IS RIGHT FOR YOU?
Research the insurance companies and their offerings before picking
a plan. Be sure to read the fine print. Plans often have exclusions,
and premiums can change based on the species of your pet, breed,
age and geographic location, among other factors.
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