Pet Health Insurance: Is it worth it?

Now that you have decided to take care of a pet, you understand that your fur baby’s  welfare goes beyond providing food and shelter. You need to take care of them as if they are members of the family.  That includes showering them with love, providing leadership and training and making sure they stay safe.

Healthcare was probably not in your list.  But it should be.  Healthcare is as expensive as, if not more expensive than food. Consider the pesky pet lice.  To keep your pet free from infestation, you must regularly spray his surroundings and also have him treated. That is just one.  There are other conditions you need to look after too.  Like ear  infections, major medical emergencies like getting struck by a vehicle, cancer treatment, torn ligaments and if the pet swallowed foreign objects. They are not human and therefore, will rely on us for all their needs.

Enter Pet Health Insurance. Is it worth paying for an annual coverage to gain access to at least P50,000 worth of medical benefits? Let us answer that question by looking at the benefits of Pet Health Insurance.

Benefits of Pet Health Insurance:

As one of the leading providers of Pet Health Insurance in the country today, we asked Standard Insurance how their product works.  They clarified that the company’s pet health insurance coverage focuses on sudden or unexpected events like Accident or Illness that most of the time, involves significant costs.  The company claims that they cover almost all medical conditions known to pets except for what it specifically and transparently outlined in the policy terms. There are no deductibles in their plan and as of June 2024, more than 90% of claims were paid based on their claims record.

That’s what they offer. But let us take a look at what most customers want and match it versus what they offer.

It appears to be a pretty good plan, with most of what we want as customers, being provided for.

I clarified why there is a need for waiting periods and I was told it is the company’s way of managing poor risks.  It’s protection for other customers to make sure the premiums of the product remain affordable for many.

How to find a good pet health coverage:

If you are considering pet health coverage for your beloved fur babies, we recommend that you study your options by looking at the following considerations.

1.  Select a suitable package or plan type

What type of plans are available in the Philippines?  Based on what we see, there are many providers.  Most of them offer what I will consider a comprehensive plan because it includes both accident and hospitalization coverages.

The first thing we suggest you look at is the plan type. We recommend a comprehensive pet insurance plan that covers accidents and illnesses because that is what our pet needs. They need medical care for the times when they carelessly hurt themselves for the trouble they innocently create. They also need health care for the ailments and infections they are exposed to.

Worldwide, Pet insurance can be broken down into these plan types.

Accident and illness plan that cover vet bills for accidents (like getting hit by a car) and illnesses such as ear infections, gut problems or even cancer.

Accident-only plans that cover vet bills for accident-only medical cases like broken bones and bite wounds.

Pet wellness plans for routine care like flea and heartworm prevention,         vaccinations. Usually, this is an add-on feature you attach to a basic plan.

2. Compare Coverages per company

After selecting what type of plan you need, choose a coverage that meets your needs and your budget. This is sometimes difficult to do given the insurance jargon but let us look at some of the basic plan descriptions that may impact your choice.

Annual maximum coverage. This is the maximum amount that will be paid out for pet insurance claims in a policy period.

Deductible. This is the amount you’ll pay before your coverage kicks in.

Reimbursement percentage. This is the reimbursement you’ll get back if you make a pet insurance claim.

The Standard Insurance policy does not seem to have deductibles or reimbursement percentages. What they do have is one basic coverage with premiums that vary depending on the pet breed.  So the plan works like this: for a maximum coverage of P50,000 per year, you can make a claim against an accident-related medical incident or a health condition charged against this maximum amount.  So if in a year your pet met an accident resulting in bone fracture that cost you P10,000 in vet bills, x-ray and diagnostics, this amount, if deemed qualified for the claim will be deducted from the P50,000 maximum.  If in the same year (God forbid), your pet was diagnosed with an illness requiring P40,000 in medical care, you can claim against the remaining amount in your policy.  Quite straightforward right?  It’s like having an allowance you can draw against.

Now, after understanding all this, let us answer the question most people ask “Is it ok to invest in pet insurance”?  I think that pet insurance can be a good way to help you pay for unexpected vet bills which can wipe your savings.  Without it, you pay for it all.