As the years go by, vet costs rise by the second, and having a pet insurance policy has now become a necessity for many pet owners. A pet health care insurance policy is just a contract between the pet owner and the insurance company. This is the way veterinarians and the veterinary organisations wanted the program to run in stark contrast to the managed care insurance model used by human health care professions which has, in many cases, to frustrated patients and health care professionals alike.With the limitations and boundaries in the managed care model, and it being a two-way contract between the insurance company and customer and then the insurance company to health professionals, many people refer to it as a limited care model. Unlike human health insurance, however, pet insurance is by far a fee-for-service insurance. Vets and pet owners are quite contended and satisfied with the service this insurance provides.However, there are a few technicalities about pet insurance and a lot to consider when looking for a suitable insurance policy for your pet. It is crucial that you choose the right policy for you and your pet. There are different levels of coverage provided for veterinary fees and the way that claims are paid. It can be very confusing for a lay man to understand. If you are purchasing a pet insurance policy for the first time, you should know that there are typically four different policy options that affect the way you can claim the veterinary fees that you pay.There are almost 250 pet insurance policies available (mostly for cats and dogs), providing you with many options to choose from. Many companies provide different insurance policies for pets based on the way of claims of veterinary fees are paid. The following are the main types of policies which are available for your pets.
Per condition with a 12-month time limit
Coverage is provided up until the veterinary fee limit or up to 12 months; whichever is reached first. After the limit is reached or time runs out, no further coverage is provided for the cost of the treatment. Such policies are the most competitive in terms of premiums.
Per condition limit
Coverage is provided until the veterinary fees limit are reached for every condition regardless of how long that takes. Once the fees limit is reached, no further coverage is provided for the treating the condition.
Per condition per year
Coverage is provided until the veterinary fees limit is reached for each and every condition. The policy has to be renewed each year, meaning that the veterinary fees limit is also renewed, and the costs of treatment for your pet will continue to be covered. These policies are usually for high end customers, as they have higher premiums.
Per year basis
Veterinary fees are covered up to the fee limit. The policy needs to be renewed each year. Each time the policy is renewed, the veterinary fees limit is also renewed. The premiums on this kind of policy are higher than the other policies because it's a more comprehensive plan.
What should you know about Pet Insurance?
When you choose one of the above-mentioned insurance policies, you should then look at a few essential characteristics in an insurance company that would satisfy your pet's health security and also be easier on your wallet. There are a few things you should know about the pet insurance plan that you choose.
- DeductibleThere is a wide variety of deductible options available, so you can personalise your plan that fits your budget. A higher deductible will lower your monthly plan, but your out-of-pocket costs will be higher when your pet needs veterinary care. Choosing a lower deductible will lower your monthly payout, but also lowers your out-of-pocket costs.
- Coverage levelRising costs of veterinarian fees and medications makes low coverage limits seem unrealistic. Choose an insurance policy that covers the true cost of unexpected illness and accidents. The best plans offer high coverage limits so you will be very well prepared and protected should the unexpected happen to your pet.
- Coverage IncludesLook for plans that cover illnesses, accidents, hereditary and congenital conditions as well as routine care. Look for plans that cover surgeries as well as injuries like broken legs and cuts. All types of illnesses including cancer and diabetes should also be covered. Routine care is usually available for an extra fee and covers preventive measures such as vaccinations, blood work and dental cleaning.
- ReimbursementGenerally, reimbursement is a fair and straightforward percentage of the veterinarian's bill which most insurance companies include in their policy, or a percentage of the benefit schedule which limits the amount the insurance company is willing to pay.