Pet Insurance: Is it Worth it?

To insure a pet can cost you more than $7,000 over the lifespan of a 12-year-old cat or dog

By Deborah Jeanne Sergeant

You love your little furry pal. But is purchasing a pet insurance policy a good investment?

Emotional aspects aside, pet insurance can cost between $20 and $50 a month. That can add up to $600 annually and $7,200 over the lifespan of a 12-year-old cat or dog.

“If the retirement income is sufficient, then it’s important to know if the insurance is going to cover all medical procedures and medications, or if not, what are the additional costs,” said Diana Apostolova, investment consultant with Rochester Investments. “For some people, a pet maybe their only companion, but it will be nice to see if low-income retirees can get some kind of external support towards pet bills.”

Pet owners should also realize that pet insurance works differently than insurance for humans.

Jeff Feldman, Ph.D., and certified financial planner with Rochester Financial Services in Pittsford, pointed out that insurance for people is somewhat subsidized. Procedures that cost hundreds of thousands of dollars result in bills of a few thousand dollars for co-pays and deductibles.

“For a pet, it’s more like dental insurance,” Feldman said. “It’s all figured out by insurance companies and there’s no subsidizing. You’re paying for what you’re getting.”

Many plans cover a percentage of preventive care and catastrophic care; however, it may pay to self-insure. MetLife pet insurance estimates that the cost of emergency vet visits for dogs range from $150 to $5,000 and cats from $150 to $3,000. But the chances that your dog or cat would need a costly vet visit are fairly low.

“If you can’t self-insure and you don’t want to be faced with that decision when faced with a $1,500 cost, maybe pet insurance is for you,” Feldman said. “If there’s a free wellness check, it’s likely factored in.”

The type of pet you have also matters. Phil Provenzano, certified Social Security specialist with The Financial Guys in Rochester, said that some breeds are prone to health issues, like German shepherds tend to be prone to canine hip dysplasia. Among pugs, health issues such as brachycephalic obstructive airway syndrome and eye ulcers are more common. Owners of these beloved breeds may see a vet more often than other breeds.

“For pets with a history of health problems, insurance might provide peace of mind,” Provenzano said. “If you’re in a position where you can afford unexpected veterinary bills, you might decide insurance isn’t necessary. However, if a large vet bill would be a financial strain, insurance can help mitigate that risk.”

Look the plans over as to their terms of coverage, deductibles and reimbursement rates.

“It’s important to compare different plans and understand what’s covered, including any exclusions or limits,” Provenzano said.

Plans that include preventive care—if you plan to have your pet receive regular check-ups, dental care and vaccines—may help mitigate the expense of the premiums.

“For some, the peace of mind and financial protection offered by insurance are worth the cost, while for others, it might not provide enough benefit,” Provenzano said. “Ultimately, it’s a personal decision that depends on your pet’s needs, your financial situation, and how much value you place on the security that insurance provides.”