Posted: March 13th, 2012 | Author: Joe | Filed under: Insurance, spending | Tags: Health insurance, Insurance, pet insurance, spending, Tips | 3 Comments »
I brought my cat in to see the vet a week ago, and since it was a new vet I had to fill out a form with relevant information regarding my pet. One thing that caught my eye was a space for pet insurance policy information. I had never considered it before, but this got me wondering:
Is pet insurance a good idea?
Treatments and diagnostic routines that were previously only available to humans are now available for pets. Conditions that were once fatal are now possible to treat, albeit at costs that run into the 1,000s.
The cost of Pet Insurance can be as high as $6,000 over the life of your pet, but chances are that you would never claim that much in reimbursement costs.
A few years back, my wife and I experienced our 1st financial tipping point which was triggered by a trip to the veterinary hospital for our cat. While that experience prompted us to take a long, hard look at our finances and eventually started us down the road of financial overhaul and debt-free living, we never once thought that health insurance for our pet was a solution.
After careful consideration of pet insurance this time around, we’re taking a pass on it but there may be cases where it makes financial sense. Here’s why it might make sense, and why it’s probably not worth the money.
When Pet Health Insurance Might be Worth it.
If your pet is at high risk to suffer from expensive diseases and the thought of having insurance gives you peace of mind, then you may sleep better at night knowing that you would be covered in such an event.
If that’s you, then you want to be absolutely sure you understand the terms and conditions of the policy and be positive you are getting the coverage you need.
Why Pet Health Insurance is Typically Not Worth the Cost.
Pet insurance is typically not the money saving proposition it seems once you factor in deductibles, co-pays and reimbursement caps. Pre-existing conditions and hereditary conditions are typically excluded from coverage. Some insurers do cover such things, but expect to pay a higher premium due to the increased likelihood of payout. Coverage for older pets carry higher premiums or are sometimes not available. Some insurers simply refuse to cover pets older than 9 years.
Read this cautionary tale from Wise Bread to see one case when pet health insurance is not really worth it.
If your pet is not a purebred, and not subject to an increased risk of serious and costly disease, then you are probably better off skipping the insurance, and saving the amount you would be putting toward a premium. Take that money and automatically save it every month in a savings account (such as the ING Direct savings account ). It will be like paying the premium but you get to keep any interest from the bank and in the very likely case that you wouldn’t file a claim, you get to keep the money too… perhaps for your next pet. Think long term. 
Bottom Line: Is Pet Insurance Right For You?
The choice of whether to purchase pet health insurance is a personal one. You have to determine just how far you are willing to go for your pet. If you’re the type of person who would “do anything” to save Fluffy – no matter what the cost – then you may seriously consider health insurance for your pet. This is especially true if the alternative is going into debt.
However, if you’re a more pragmatic sort of person who is willing to provide good, basic care for your pet but find yourself thinking, “it’s only a cat/dog, and he’s had a good life” when faced with the prospect of a 4 figure vet bill, then you’re best off by taking a pass on the pet insurance.
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Posted: January 18th, 2011 | Author: Joe | Filed under: spending, Tips | Tags: Guest Post, Health insurance, Saving Money | 1 Comment »
This is a Guest post from Bailey Harris. Bailey writes about
health insurance quotes and related topics for www.healthinsurancequotes.org.
With the increasing cost of health care many people are looking for ways to cut back on insurance without damaging their ability to deal with a crisis. A relatively stagnant economy may mean doing without some luxuries, but insurance coverage is one area where taking a shortcut or relying on luck alone could be disastrous. Sure, paying premiums every month can seem to be like throwing good money after bad…until something happens. You have a slip and fall. The baby develops pneumonia and requires hospitalization. Tests for yourself or another family member come back positive and suddenly you’re dealing with cancer or another serious illness. All of these scenarios are unthinkable, but possible nonetheless. Can you really take the chance of being unprepared?
Photo by http://www.flickr.com/photos/27384147@N02/
If finances are slim and something needs to be cut from the budget, do the smart thing before canceling your health insurance. Seek out affordable health insurance options.
Cheap Isn’t Always Cheap
Balancing your budget by decreasing health insurance or buying a “cheap” policy may seem like the logical first step. However, if the situation arises and you’re stuck with insufficient coverage, the money you saved quickly disappears. You could end up drowning in medical bills.
Plan Ahead
Do some research and find out what your options are. As deplorable as it may seem you should discuss worst case scenarios. How much money would you need to get by if the primary breadwinner in the family was disabled for two, six, eight months, or longer? What if one of the children developed a crippling disease and was in need of constant medical care? Does your present policy provide what you need? What areas could stand some trimming? Would buying a policy that covers less provide you with enough income to live and pay medical bills? Having an idea of how you would survive financially could make finding the right policy much easier.
Ask Your Agent
Find an agent you trust and ask questions. Since you have a general idea of what you may need you can work together to come up with a plan you can live with. Insurance options may seem beyond understanding, but that’s why the agent is there–to help you. If you’ve done your homework you’ll know if you’re being steered in the right direction. Don’t be afraid to offer your opinion or ask questions. Keep this old saying in mind, “there is no such thing as a stupid question, only stupid answers.” If you’re unsure of something, ask the agent to explain in detail.
The Internet is Your Friend
Doing online research is a good way to educate yourself in the seemingly endless variety of insurance programs available. Visit a number of different websites. Write down the information that you think will be helpful and discuss it with your spouse. When it comes to insurance options, it’s impossible to have too much information. Even though the choices seem overwhelming, thorough study will eventually pay off and lead you in the right direction.
Work Out a Viable Payment Plan
When you’re discussing health insurance options with your agent don’t forget to find out what the best, most frugal method of payment would be. It may be possible to save money by paying a lump sum instead of spreading out the payments over a period of time. Moving to a higher deductible could be an option, but consider the overall financial health of your family before taking that route. Remember, cheaper insurance payments may mean less coverage or greater out of pocket expense.
Shop Around
As with any business, insurance companies are in competition with each other. Talking to a number of agents may lead you to discover that someone offers more bang for the buck than anyone else. If you know what you need as far as coverage goes, and you’ve done research on what’s available and aren’t afraid to ask tough questions, you’ll surely come across a policy that will provide all the coverage you need.
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Posted: November 24th, 2009 | Author: Joe | Filed under: Insurance | Tags: Auto Insurance, Best, Health insurance, Insurance Quotes, Life Insurance | 3 Comments »
This list is compliments of Kiplinger’s personal finance magazine “Best Of” edition. Today, we’re focusing on the best insurance related web sites.
Best site for health insurance quotes.
eHealthInsurance.com.
eHealthInsurance.com offers quotes for most major health insurers as well as the ability to compare coverage, and find plans that include your current doctor. If you are without employer provided health insurance, it’s essential that you at least check out this site.
Best site for health coverage information.
CoverageForAll.org.
CoverageForAll.org provides strategies and resources to make it easier for low-income people and people with existing medical conditions find more affordable health coverage.
Best site for life insurance quotes.
AccuQuote.com.
AccuQuote.com allows you to search hundreds of top rated providers and provides half a dozen quotes for you to pick from. I used AccuQuote.com when I was looking for a life insurance provider for my wife and myself. The process was very easy. AccuQuote.com provides a manager to work with you one-on-one and see you through the entire process from selecting a provider to having any required blood tests performed. In our case, the blood tests were done in the comfort of our own home by a sort of visiting nurse paid for by the Insurer. The AccuQuote case manager them ensures that the blood results are filed correctly with the Insurer and gracefully bows out once the contract is signed and you become a customer of the Insurer.
Best site for Medicare Part D.
medicare.gov/mpdpf.
This is an excellent tool for comparing Medicare Part D prescription drug policies. You can check out premiums and co-pays for Part D plans.
Best site for Medicare Advantage.
MedicareNewsWatch.com.
This site’s CostShare report provides analysis of the best Medicare Advantage plans in your area.
Best site for Auto Insurance.
InsWeb.com.
InsWeb, like AccuQuote for life insurance, allows you to search hundreds of auto insurance providers based on your personal criteria and provides several quotes from top rated insurers.
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Treatments and diagnostic routines that were previously only available to humans are now available for pets. Conditions that were once fatal are now possible to treat, albeit at costs that run into the 1,000s.
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