As well as ensuring your pet is taken care of when in need, pet insurance can also protect you financially. Take the following example:
Bruce is the owner of Daisy, a four-year-old female Labrador. To ensure Daisy’s well-being and protect his finances, Bruce opted for a comprehensive pet insurance policy with a $10,000 annual benefit limit, a benefit percentage of 80% and a $200 excess. He pays a monthly premium of $65, knowing that a significant portion of Daisy's healthcare expenses will be covered. This fixed expense simplifies tracking and managing outgoing costs related to Daisy's health.
In addition to the pet insurance premium, Bruce sets aside $50 monthly in a dedicated pet expense fund. Over the course of two-and-a-half years, Bruce accumulates $1,500 in this fund, ensuring he has a safety net for any unforeseen expenses related to Daisy's health.
In the second half of the third year, Daisy falls ill, requiring urgent medical attention. Bruce takes her to the vet, where she requires surgery, follow-up visits and medication, resulting in a total bill of $4,000.
Bruce files a claim with his pet insurance provider. As he had opted for an 80% benefit percentage and Daisy’s illness and treatment were covered by his policy, his insurer reimburses him for 80% of the total expenses after the excess has been deducted. Bruce receives a reimbursement of $3,000, providing significant financial relief. The savings in Bruce’s pet expense fund can cover the outstanding amount. This is broken down as follows:
- Vet expenses: $4,000
- Total amount claimable after 80% benefit percentage applied: $3,200
- Excess payable: $200
- Total amount paid to Bruce: $3,000
- Out-of-pocket expenses: $1,000
Bruce's experience showcases the true value of pet insurance in securing Daisy's health and providing peace of mind for his financial management. The fixed and regular costs of the policy simplify budgeting, while his prudent savings strategy ensures readiness for unforeseen expenses. By opting for pet insurance, Bruce was well-prepared to face the unexpected, demonstrating how the right coverage can empower pet owners in preserving both their pets' well-being and their own financial stability.