Pet Insurance Pet Savings Pet Plan

Buster’s Vision Education Tool

Pet Insurance vs. Pet Savings

By Bobbi Evenson, Founder for Buster’s Vision & Proud to be an Animal Advocate

May 2, 2017

Pet Insurance

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What is the difference between a pet saving account and pet insurance account?

Wikipedia Definition for Pet Insurance: Pays partly or in total, for veterinary treatment of the insured person’s ill or injured pet. Some policies will pay out when the pet dies, is lost or stolen. As veterinary medicine is increasingly employing expensive medical techniques and drugs, and owners have higher expectations for their pet’s health care and standard of living than previously, the market for pet insurance has increased.

The explanation for Pet Savings Account (I cannot find a definition readily available online.): A Pet Saving Account is a separate account. It is not related to and/or attached to Pet Insurance. It is a saving account you open at a bank or financial institution in which accrues interest.

Use Due Diligence When Shopping for Pet Insurance

I had an unfortunate experience with a pet insurance company. I was paying $150.00 per month for a premium pet plan for a period of three years. Understandably, I had to pay for the office visit co-payments and medications.

My dog developed fatty tumors under her chest. My vet aspirated the tumors for testing to rule out cancer. The aspiration fee and test were approximately $100.00. I sent my vet bill to my insurance company only to find out they do not insure tumors. (They told me to read the fine print on my contract.) I was furious as I had been paying $150 per month for three-years ($150 x 12 x 3 (36 months) $5400.00) and I never once used my pet insurance. My anger consumed me and I stupidly canceled my pet insurance plan. I tried to re-enroll my dog with the same insurance plan. Sadly, the pet insurance company would not enroll and/or re-enroll my dog due to pre-existing tumors or a medical defect. I was heartbroken. I would never encourage a pet owner to cancel a pet insurance plan.

Shop different pet insurance companies and always carefully read the contract; including the fine print. Ask if they have a ceiling or cap on their insurance plans. Meaning, they may cover only $2K or $4K if your fur-buddy develops cancer. Many insurance plans have basic and premium plans.

Research a Pet Stock or Bond Portfolio

I researched a bond portfolio at Fidelity. This is an ESTIMATED projection for a six-year investment.
If I invest $100.00 per month x 12 months x 6 years (72 Months) with a 5% returned, I would have an ESTIMATED investment of approximately $7,560.00 with beneficiaries on the account. If I don’t use the ESTIMATED $7,560.00, I can transfer the funds to my grandchildren’s college fund or keep it for my next fur-baby. (Please know, the financial market trends can fluctuate with returns going up or down.) The good news, you are investing in a pet health plan or safety net for your family pet.

Catastrophic Disease

My fur-baby in now eight years old with stage one cancer. If I had invested in a bond or stock portfolio when she was a puppy I would have approximately $7,560 for my fur-baby’s health plan. Good news! It’s been two years and she appears to be incredibly healthy.

Alternatives to Pet Insurance

If you absolutely cannot afford insurance for your fur-baby, look for alternative solutions. If considering a stock or bond portfolio, you must invest EARLY in your pet’s life to yield the financial benefits into the future. There is always a risk if your fur-buddy gets sick at a young age if you don’t have pet insurance.

Pet HMO or PPO

I am no way suggesting you replace a stock portfolio or bond investment for pet insurance. Together they are ideal for your new pet. Sadly most people cannot afford pet insurance which is privatized with very little regulation and some corruption.

It would be totally paw-some if pet insurance was covered under a regulated HMO or PPO. Pet insurance audits would also help control corruption. We can only hope in the future our family pets will have the same health benefits as our children. After all, our fur-babies are family. 

I hope this information was interesting and a benefit for you and your family pet.