Shortly after welcoming a Bernese mountain dog into our lives seven years ago, she somehow managed to break three bones in her front foot outside one evening. By the time this injury healed, it ended up costing about $2400 is vet bills and got me thinking perhaps we should take a look at pet insurance for the future.
Armed with pamphlets from the vet's office, I began some intensive on-line research. I telephoned three different companies so I could ask questions directly, made notes with columns of pros and cons and eventually settled for a company that I believed offered the best coverage in terms of deductable, percentage paid and monthly premiums. Curiously, there were several times on the phone when I was certain I had spoken to the exactly the same telephone agent at two different companies, however they always assured me I was mistaken.
A number of friends were sceptical. One woman, a local dog breeder, suggested that instead of paying a monthly premium to an insurance company, why not put that same amount into my own ‘pet insurance’ account? That way, it would be there if needed, with no deductable or claim percentage to erode its value. I admit I did give this some thought, however, not nearly enough as things turned out.
Over the next five and a half years, the insurance premiums continued to creep up, (always attributed to "rising veterinary costs"). Along the way, the company name and the underwriter changed and so did many of the terms of the original policy. Despite all my diligent initial research, what I ended up with was not at all what I had signed up for. Finally, when I received notification that the deductable had risen to $500 a year, I decided to cancel.
But of course, I was mollified by the agent on the phone. I had misunderstood. The $500 was only a "one-time" deductable, she explained, therefore much more advantageous. Okay then, I thought, that certainly made more sense. After all, who in their right mind would agree to a yearly deductable that high? And in the end, I was talked out of cancelling.
In September 2010, we lost our beautiful big dog to bone cancer. I submitted about $1300 in eligible receipts to the insurance company and received two cheques - one for $100 and one for $50! (Oh yes, I can't forget the sympathy card.) But even after the $500 deductable and the percentage, by my calculations, they still owed me at least another $500. What had happened?
What happened was: I was right to begin with. The $500 deductable was a yearly deductable, just as I thought. Again, I had "misunderstood". And in addition, the receipts I sent in (although all incurred between May and September of 2010) apparently represented two different policy years, so $500 was lost to the deductable for each year.
In the five and a half years I had the pet insurance, the very basic premiums cost approximately $1600. So in my case, if I'd listened to my friend and put that $1600 into my own insurance account, I would have been about $300 ahead after paying the $1300 in bills. I couldn't believe I had been so stupid!
The more I've thought about my friend's idea, the more I realize what a good idea it is. If you follow through with making the monthly installments to yourself just as you would with the insurance company, there's very good chance you'll do as well (or better) on your own, and, if you are fortunate enough not to have to use the fund, then the money will have acted as an extra savings bonus for you!
Armed with pamphlets from the vet's office, I began some intensive on-line research. I telephoned three different companies so I could ask questions directly, made notes with columns of pros and cons and eventually settled for a company that I believed offered the best coverage in terms of deductable, percentage paid and monthly premiums. Curiously, there were several times on the phone when I was certain I had spoken to the exactly the same telephone agent at two different companies, however they always assured me I was mistaken.
A number of friends were sceptical. One woman, a local dog breeder, suggested that instead of paying a monthly premium to an insurance company, why not put that same amount into my own ‘pet insurance’ account? That way, it would be there if needed, with no deductable or claim percentage to erode its value. I admit I did give this some thought, however, not nearly enough as things turned out.
Over the next five and a half years, the insurance premiums continued to creep up, (always attributed to "rising veterinary costs"). Along the way, the company name and the underwriter changed and so did many of the terms of the original policy. Despite all my diligent initial research, what I ended up with was not at all what I had signed up for. Finally, when I received notification that the deductable had risen to $500 a year, I decided to cancel.
But of course, I was mollified by the agent on the phone. I had misunderstood. The $500 was only a "one-time" deductable, she explained, therefore much more advantageous. Okay then, I thought, that certainly made more sense. After all, who in their right mind would agree to a yearly deductable that high? And in the end, I was talked out of cancelling.
In September 2010, we lost our beautiful big dog to bone cancer. I submitted about $1300 in eligible receipts to the insurance company and received two cheques - one for $100 and one for $50! (Oh yes, I can't forget the sympathy card.) But even after the $500 deductable and the percentage, by my calculations, they still owed me at least another $500. What had happened?
What happened was: I was right to begin with. The $500 deductable was a yearly deductable, just as I thought. Again, I had "misunderstood". And in addition, the receipts I sent in (although all incurred between May and September of 2010) apparently represented two different policy years, so $500 was lost to the deductable for each year.
In the five and a half years I had the pet insurance, the very basic premiums cost approximately $1600. So in my case, if I'd listened to my friend and put that $1600 into my own insurance account, I would have been about $300 ahead after paying the $1300 in bills. I couldn't believe I had been so stupid!
The more I've thought about my friend's idea, the more I realize what a good idea it is. If you follow through with making the monthly installments to yourself just as you would with the insurance company, there's very good chance you'll do as well (or better) on your own, and, if you are fortunate enough not to have to use the fund, then the money will have acted as an extra savings bonus for you!
