Pet Insurance University
A Vet's Guide To Pet Insurance
Pet Insurance Guide
The best way to describe how pet insurance works is to compare it to something familiar: Human Health Insurance.
Similarities to Human Health Insurance
Similar to human health insurance, pet insurance has premiums, deductibles, co-pay, and maximum payouts.
The Premium is the amount you pay monthly or annually for your pet insurance policy.
The Deductible is the amount of the veterinary bill you must pay before the insurance company starts paying.
Types of deductibles:
Choosing a higher deductible will lower your premium, but the amount of money you will pay out of your pocket for medical treatment will be higher.
Choosing a lower deductible will lower the amount of money you will pay out of your pocket for medical treatment, but your premium will be higher.
The Co-pay is the percentage of covered expenses that you must pay after the deductible is met. The insurance company pays the remaining percentage of covered expenses. So...if your co-pay is 20%, the insurance company pays 80%.
Remember this is 80% of covered expenses. There may be expenses you incur that are not covered by the insurance plan.
Make sure you know what the pet insurance plan covers before you buy it. This is one area where many who buy pet insurance plans fall short. They are then disappointed when their policy will not pay for procedures or treatments they thought were covered.
Choosing a higher co-pay will lower your premium, but the amount of money you will pay out of your pocket for medical treatment will be higher.
Choosing a lower co-pay will lower the amount of money you will pay out of your pocket for medical treatment, but your premium will be higher.
Maximum Payout is the maximum amount of money the insurance company will give you.
There are five different types of Maximum Payouts:
Some companies will use a combination of two types of maximum payouts. For example, some companies institute a maximum payout per incident and a maximum payout per year.
The higher the amount of your maximum payout, the more you will pay in premiums.
Picking the right type of Maximum Payout is important to pet insurance success. In lesson 6, I will show you how to make the right choice when it comes to Maximum Payouts.
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