Guide On Choosing Pet Insurance

Confused about pet insurance plans? Are you unsure if pet insurance is for you? Or are you not sure what you should look for in a pet health insurance policy?

Choosing and deciding on the right pet insurance Australia is overwhelming and very confusing. With information on pet insurance reviews scattered in many different places, as well as pet insurance comparison that are vague and confusing, interested pet owners cannot help but feel confused and overwhelmed.

However, as vets’ fees grow ever more expensive and fancy medical techniques and drugs become available, getting pet health insurance has become a necessity in these times of uncertain financial climate.

In order to help you navigate through the muddle and confusion, here are guide questions that you need to know in choosing the right pet insurance:

What is Pet Insurance?

Also called pet health insurance, pet insurance is a type of insurance that is designed to help pay the veterinary expenses if one's pet becomes ill or is injured in an accident. There are also some policies that pay out when the pet dies or if it's lost or stolen. Others also offer Routine and Wellness coverage ' reimbursement for vaccinations, healthy annual exams, spaying/neutering, etc. ' as well.

Pet insurance plans are best used to help mitigate or soften the risk of incurring significant expense to treat ill or injured pets.

How Does Pet Insurance Plans Work?
Pet insurance works by reimbursing the owner after the pet has received care and the owner submits a claim to the insurance company. It is similar to human health insurance as pet insurance has premiums, deductibles, co-pay, and maximum payouts.

Premium. This is the amount you pay monthly or annually for your pet insurance policy.
Deductibles. This is the fixed amount of the veterinary bill for covered veterinary services that you must pay before the insurance company starts paying benefits. Choosing a higher deductible usually translates to lower policy premiums. However, the amount of money you will pay out of your pocket for medical treatment will be higher.

Deductibles are either annual ' the amount you must pay each year regardless of the number of new incidents. Once a pet owner reaches the annual deductible limit, any future claims during that policy year won't be subject to anymore deductible ' per-incident ' the amount you must pay for each new illness or injury. This amount must be paid each time the pet is presented with a new problem.

Co-pay or Coinsurance. This is the percentage of your claim (the covered expenses) that you must pay after the deductible is met. The insurance company then pays the remaining percentage of covered expenses. So make sure that you know what the pet insurance plan covers before you buy it as there may be expenses you incur that are not covered by the insurance plan.

Generally, it is preferable to select lower copay since it is a percentage of the total bill; whereas the deductible is a fixed, known amount. Likewise, choosing lower co-pay will also mean the amount of money you will pay out of your pocket for medical treatment will also be lower, but your premium will be higher.

Maximum Payout or Policy Limits. This is the maximum amount of money the insurance company will give you. When a maximum payout or policy limit is reached, the policy will no longer pay applicable claims. There can be several types of policy limits applied to a pet insurance policy. Typical policy limits are lifetime, annual, and per-incident. There are also some companies that use a combination of two types of maximum payouts. For example, some companies institute a maximum payout per incident and a maximum payout per year.
The higher the amount of your maximum payout, the more you will pay in premiums.

All insurance companies have limitations and exclusions. Generally, companies often limit coverage for pre-existing conditions. Any existing conditions or illnesses that your pet has before you take out the insurance will not be covered by the new policy. This is done in order to eliminate fraudulent consumers; thus, giving owners an incentive to insure even very young animals who are not expected to incur high veterinary costs while they are still healthy. So if you've decided pet insurance is for you, it’s best to take out insurance while your pet is healthy.

How Old or Young The Pet Should Be?
You may take out insurance for your pet as early as 7 weeks of age. Like children, young pets (your dog or cat) have the highest risk of accidents due to the fact that their immune systems aren't mature, making them more susceptible to infectious diseases.
Pet insurance plans have also no upper age limits, so you can insure your pets at any age over 7 weeks as they will get the same great coverage as to the young pets.
However, as your pet ages, there will be more medical problems and chronic disorders that may develop. These chronic disorders and medical problems may not be covered by the policy or it may cause you to incur a much higher premium.