It is midnight and you are in a pet emergency hospital with your dog. It was discovered that he had fractured his hind leg and required orthopedic surgery. Surgery after care and physical therapy will cost $ 2,500, with hundreds of dollars. Sound familiar or scary? This is why the pet insurance business is one of the fastest growing pet related industries.
How Pet Insurance Works
Pet insurance companies are not charity groups that want to help you in times of financial need. They are profitable businesses. The reason they are profitable is that they know that the risk paid to pet owners is less than the money they receive in the total monthly premium. They also know that when they are young your pets require extensive care so little that you may have paid more than enough in monthly premiums to pay for the pet’s later years. Why were the same facts not taken advantage of? Be your own insurance company and keep any unexpected money intact.
Pet savings account
Quality pet insurance policies range from $ 35-75 per month, depending on coverage and deductibles. Why not put the same amount in a savings account for your pet? The account will be worth $ 420-900 in a year. According to American Veterinary Medical Association pet ownership data, the average household expense is $ 378 annually for dogs only and $ 191 annually for cats in veterinary care. Your account will easily cover these expenses.
During the life of your dog, the account will grow to ensure care in the later years of the pet. If you considered annual exams and vaccines to be “a deductible” and paid them out of pocket instead of an account, especially during the early, healthy years of your pet, then the account would be even larger in later years.
Another way to protect your pet savings account in the early years is to consider the addition of a “catastrophic” pet insurance policy. These are less expensive than major policies and protect against serious injury or illness. Eventually the policy can be abandoned as the savings account grows.
An analysis of pet insurance policies in Consumer Reports agrees that self-insured pet plans are the best. Chances are in your favor that there will be money left in your pet savings account after your pet is deceased. You retain the money that would have been spent as monthly premiums and profits for insurance companies. Feeding a quality diet and maximizing the health of your pet will also reduce veterinary bills and increase the value of your pet savings account.