Pet Insurance - Yes or No?

Okay on to a more serious subject.

The question of whether to purchase health insurance for your pet is a very personal one. The fact that companies will pay out thousands of dollars for your pet's illness illustrates the fact that the likelihood of your needing to use anywhere near the amount of coverage you have is very slim. Just like people insurance, if the companies weren't taking in more in premiums than they are paying out in coverage they wouldn't be in the business. So the chances are that you will never need to submit a claim. With all of the pets that I have had over the years, not one of them required special medical treatment. However, most of that is because they lived their entire lives illness free; one is because I chose not to take extraordinary measures when my cat got cancer. Also, all of my pets were "mutts". These days more and more people are opting for purebred animals, who are more susceptible to illness and injury.

The root of the issue is this. If you are the type of pet owner that will do anything to prolong the life of their pet, veterinary medicine now has an extensive list of tests and treatments they can offer up to you, each with a significant price tag. Would you want to take advantage of this, and could you afford to?

Two friends come to mind...one, faced with the imminent death of her beloved cat was determined to do everything she could to forestall the inevitable, and spent thousands of dollars to do so, all of which bought the cat another year of life. Worth it? To her at the time, yes..in hindsight she admitted she was not necessarily thinking of his needs first, and would not make the same decision now...again a very personal decision.

The second friend has spent multiple thousands of dollars over the past two years having the crucius ligaments repaired on her canine companion. This is a decision that I would have made as well. Other than the ligament problem, the dog was healthy and happy and after surgery can frolic pain free again.

Basically I believe it comes down to making an honest assessment of yourself and your finances. If your pet did require surgery or treatment tomorrow, could you afford to pay for it? If you were faced with a life threatening diagnosis, could you make the decision to euthanize, or would you spend whatever it takes to prolong a life?

If you are unsure of your ability to pay for the medical treatment your pet may require, and/or you know that you will take any and all measures necessary, then pet insurance may be a very good idea. If neither of these situations apply to you, then it's probably not necessary.

Money advisors often say that it makes more sense to put the money you would have spent on insurance premiums into a high interest savings account or mutual fund instead. This could work as well, but you must be honest with yourself. Do you have the discipline to make that contribution to the account every month and to leave it there, or will you be tempted to draw on it the next time the furnace breaks down or the car needs repairs? Also, you will have to set aside far more on a monthly basis than the average cost of an insurance premium in order to ensure you have sufficient money set aside for a medical emergency.

If you choose to contribute to an insurance policy, the money is out of your hands and cannot be drawn on, guaranteeing that the money is available when you need it.

Like I said at the beginning, a very personal choice and one that should be made when your pet is young, as insuring a senior pet can be very expensive, and preexisting conditions will not be covered.

Here is an overview of some of the top pet insurance companies.

http://petcare.suite101.com/article.cfm/pet_health_insurance_companies