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Money Made Easy: Pet Insurance

hi I'm Dan Danford and we're doing

another episode of money made easy for

dads divorce calm this is a question

from the website it's not the kind of

question that we got 20 or 30 years ago

does owning pet insurance make any

financial sense I know many insurance

companies I've looked into only

accepting certain breeds a lot of

exclusions on pre-existing conditions

and/or they have extreme limitations on

what is covered at the vet any advice

amazing transformation I mean this is

just one of those topics that didn't

even exist 15 or 20 years ago

but the background information is that

more and more people have pets many of

those pets are living longer and longer

which means that they encounter some of

the diseases and maladies of age and

that treating those animals can be very

expensive

hence insurance companies never wanting

to miss an opportunity have created pet

insurance so I guess my first bit of

information or advice would be what I

would do with anybody with any kind of

an any kind of insurance at all and

that's only cover expenses that you

can't pay yourself okay the reason we

have car insurance or house insurance is

because we might have a problem that we

couldn't afford to fix the cost of a car

transmission falling out or our being

involved in an accident and the costs

that go along with that or having a fire

at our home and all of a sudden you know

we owe a big mortgage and we'd have to

rebuild the house it's just too much for

most of us to do so we have insurance to

cover those things well it's the same

thing with your pet okay if you've got a

pet and there's a potential that that

pet might have a health problem that

cost you more money than you have then

you ought to get into insurance and it's

a simple question of common sense I

guess one of the things is you know if

if you think it's likely that your pet

would encounter $1,000

surgery or something like that okay well

if you're paying nearly a thousand

dollars a year in pet insurance premiums

okay and you'd be paying those premiums

for a number of years then you might pay

those premiums for five or six or seven

years in other words you've paid six or

seven thousand dollars worth of premiums

in order to pay for a thousand dollar

surgery that just doesn't make sense

doesn't make sense at all so I guess

what I'd say is is to first of all

decide you know what's your threshold

okay and you know how much money would

you spend to take care of your animal if

it had a problem and would you be able

to afford that if it was an issue and

truthfully some of these questions when

it comes to animals or you know the same

questions we face with elderly people

today and that's that you can spend an

incredible amount of money keeping them

alive for a very long time and their

quality of life might not be that good

so at some point do you ease both your

suffering and I can't answer that

question and I have opinion on it only

you know that question with your pet but

you know there are you know treatments

and things today that that can you know

make they can extend an animal's life

for a very very long time

and it can be very expensive so that's

part of this issue as well so let's say

you decide you do need an insurance

policy for your pet well what I tell

everybody all the time is to compare you

know check around with different

companies and different pet insurance

policies you'll want to look at things

just like you would with anything else

you want to look at the deductibles you

want to look at what's covered you want

to look at how much the premium is you

want to look at exclusions for

pre-existing conditions obviously if

your pet already has a condition and

it's excluded then there's no point in

even having that insurance but you may

find another insurance company that

covers those things

so again just compare between the

different insurance companies another

thing is that especially with dogs but

also with cats is that breeds matter you

know some breeds of dogs and cats

are more subject to certain diseases

than others and you'll find this when

you start looking around for policies

because the policies will be more or

less or might not cover certain breeds

so you know be aware of your own breed

and your own you know common things that

happen there and then use that common

sense to make a decision about what fits

for your pet okay and then the last

thing I'd say it's very similar to

humans again and that is wellness you

know when we have company plans with our

companies one of the things they

encourage us to do is to encourage our

employees to live in a healthy lifestyle

not only does that make the employees

life better but it also cuts down their

expenses in the long run well the same

things true with your pet okay one way

to reduce expenses is to make sure that

the animal is well taken care of you

know make sure they get the exercise

they need the nutrition that they need

the checkups they need the shots they

need all those kinds of things will

reduce your costs of insurance and also

reduce your costs at the vet the bottom

line on this whole situation is you know

it's the relationship that you and your

family have to your animals okay that's

really really important here and then

it's the relationship between what the

cost of those animals might be in your

budget and all of that has to be

reconciled together so that you can make

a wise decision on buying insurance for

your pet I really do think it's an

important topic today because so many

people have animals that mean so much to

them and veterinary medicine just like

human medicine has become very very

expensive and very very specialized and

so it very very well may be that many of

us should consider having insurance

policies for our pets but again it's a

person by person or family by family

decision and I encourage you to think

long and hard and check things out

before you buy those policies that's

another episode of money made easy for

dads divorce comm I'm Dan Danford we'll

see you again

next week