- 11 Feb 2021
- 4 minutes
Over half of the world's population love pets, mostly cats and dogs. Dogs may be used for several purposes depending on the breed, but are most times used for home protection. Although, irrespective of the purpose of getting a pet, do you know there will be a time when they may be ill or sustain injuries due to home accidents? Are you aware that your financial stability may be threatened by veterinary care?
The medical expenses you may incur from veterinary care to restore your sick, or injured pets may be quite expensive for out of pocket money. However, you can be a beneficiary of financial protection for the covering of whatsoever expenses you incur from your sick or injured pet if you have pet insurance.
How does pet insurance work?
Pet insurance programs cover various pets, such as birds, reptiles, dogs and cats, among which the most prominent pets insurance plans are mainly for dogs and cats due to their expensive nature compared with other types of pets. "How does pet insurance work?" is one of the most important questions pet owners new to pet insurance frequently ask before purchasing a plan for their pets.
Pet insurance or veterinary health insurance works in a similar way as humans health insurance. Their insurance policies usually contain a detailed description of what the insurance company will cover and their coverage limits. In pets insurance, the insured will be required to pay a specific premium charge monthly and annually on a daily basis in order to be a beneficiary of the coverage they offer. Petfirst pet insurance, Metlife pet insurance and Lemonade pet insurance offer the best coverage and are the best pets insurance providers due to the reasons you will soon find out.
What Is pet insurance?
Pet insurance is a type of insurance that offers coverage for the veterinary care your pets may need to keep them healthy. They are also called veterinary health insurance, which gives pet parents the benefits of treating their pets without being worried about the cost they may incur in the process. In exchange for the insured monthly premium.
Veterinary health insurance or pet insurance is different from human health insurance in the sense that they reimburse the expenses they may require for their pets' veterinary care directly to the pet parents. On the contrary, human health insurance usually pays the insured care provider, like we've discussed in our insurance guide.
Pet insurance terms you must understand before purchasing any coverage
There are primarily three terms or components of pet insurance you must be familiar with when considering the worth of a plan you may decide to purchase. These terms are deductible, reimbursement, premium and annual limit.
A deductible is the amount of money you will be required to pay for your pet's veterinary care before your pet insurance company kicks in and starts reimbursing you for the expenses you incur. Pet insurance companies usually offer two types of deductible; annual deductible and per-incident deductible.
Reimbursement is the lump sum of money insurance companies usually pay to the policyholders for the cost of veterinary care. Generally, reimbursement from several pet insurance companies usually ranges from sixty to hundred percent of the veterinary bill, which may range from eighty to ninety percent for the vet bill from the most comprehensive of all coverage.
A premium is the sum of money you will be required to pay regularly on a monthly basis to keep your insurance policy active.
The annual limit is the maximum coverage (reimbursement) your pet insurance company provides you. If you reach the maximum coverage for the year, your insurer will leave you with the responsibility of covering any expenses you incur until your coverage resets.
Does pet insurance cover all conditions?
Pet insurance does not cover all the conditions the pet may have, especially pre-existing health conditions. The coverage a pet may benefit from depends on the insurance plan they are insured to. Pet insurance offers coverage for pets' accidents and sudden illnesses, irrespective of how severe they may be.
Types of pet insurance coverage plans
There are four primary types of pet insurance coverage plans, and they include:
- Wellness plan
- Accident-only plan
- Accident-illness plan
- Accident-illness plan with wellness add-on
Wellness plan offers reimbursement for checkups, preventive care, and routine care. However, they do not provide coverage for accidents and injuries.
An accident-only plan offers reimbursement for emergency care in which accidents (especially if your pet gets hit by a moving car) is the primary cause.
An accident-illness plan is a comprehensive plan that offers reimbursement for almost all conditions because it offers coverage for both accidents and illnesses.
Accident-illness plan with wellness add-on
This plan provides a more comprehensive coverage than an accident-illness plan; hence they are the most expensive of all pet insurance coverage plans.
Pet insurance companies
There are various options of pet insurance companies in the market, among which there are only a few we can term best. Some of the best pet insurance companies include Petfirst, Metlife and Lemonade pet insurance.
Petfirst pet insurance is prominent for its low deductible and muti-pets discount. Lemonade pet insurance operates on artificial intelligence, which makes it more flexible in terms of policy and claim process faster than several others.