4 Myths About Pet Insurance – Forbes Advisor – Technologist

Pet insurance in the U.S. has been around since the 1980s, with the first policy issued in 1982 to the famous TV dog, Lassie. Today, many pet insurance companies have arrived on the scene, promising to take the bite out of vet bills in one way or another.

However, as the industry has grown, so has the spread of misinformation. Here are some of the most common pet insurance myths to be aware of, so you can make the most informed decision for your pet, your wallet and your peace of mind.

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Myth 1: Pet Insurance Works the Same as Human Health Insurance

There are some similarities between pet and human health insurance, but there are also some crucial differences. Here are a few similarities and differences to note:

Coverage

Health insurance policies for people and pets can be customized based on your budget and needs.

For example, a Lemonade pet insurance base policy includes coverage for treatments, diagnostics and medications related to accidents or illnesses. You also have the option of adding preventative care packages to cover wellness-related expenses, as well as vet visit fees, physical therapy, dental illness, behavioral conditions and end-of-life and remembrance add-ons to round out your pet’s coverage.

On the other hand, a basic human health insurance policy may cover preventative care, urgent care, surgery, medication, mental health therapy and lab tests. Dental care, vision coverage and other benefits can often be added to a basic health insurance policy.

Choosing Care

With human health insurance, it’s typically about where you get care, and with pet health insurance, it’s about who provides the care.

Human health insurance may cover care at in-network clinics, hospitals and with specific doctors, while pet insurance may cover care based on the individual veterinarian.

For example, with Lemonade, you can take your pet to any licensed veterinarian in the U.S. and be covered. With human health insurance, you may need to visit specific in-network hospitals and doctors to ensure coverage.

Pre-Existing Conditions

A pre-existing condition is a medical issue that you or your pet showed symptoms of, were diagnosed with, or received treatment for before the health insurance policy’s waiting period ended.

Here’s the tricky part: Most pet health insurance plans don’t cover pre-existing conditions.

For human health insurance plans, you could previously be denied coverage for pre-existing conditions, but this is no longer the case since the Affordable Care Act was enacted in 2010.

Myth 2: I Don’t Need Insurance for My Young, Healthy Pet

You might think that pet insurance is only for older pets or those with existing health issues.

But waiting to get pet insurance until your dog or cat has a health issue could put you in a situation where it’s considered a pre-existing condition. If you were to wait, you’d still be eligible for pet insurance, but your policy might not cover any costs of treatments related to the pre-existing condition.

Pets are likely to face health issues over their lifetime, such as an upset stomach due to eating something they shouldn’t, a UTI or a broken bone. These treatments can be costly, and follow-up care might be needed later.

For example, if your rambunctious 3-year-old Labrador fractures a leg at the dog park and needs an X-ray, a cast and pain medication, having a base Lemonade accident and illness policy means they’re covered for these treatments today. And if your dog’s leg doesn’t heal properly and they need surgery in a few years, they’ll still be covered.

Unfortunately, if you waited to get pet insurance until after your dog broke his leg, any treatments related to the incident, such as surgery, would be considered a pre-existing condition and wouldn’t be covered.

Getting insurance early can help you save money and ensure your pet is covered in the future.

Myth 3: Pet Insurance Isn’t Worth It for Pets with Pre-Existing Conditions

With pet insurance, it’s better to get it late than never. Ideally, you’d sign up for pet insurance before your pet gets sick or injured, but pet insurance can still be worth considering if your pet has a pre-existing condition.

For example, Lemonade pet insurance covers several conditions considered “curable.” If your pet has issues like an ear infection, roundworms or diarrhea before you sign them up for coverage and they stay symptom-free for 12 months, your policy might cover those conditions again.

However, conditions like cancer, arthritis, allergies or diabetes aren’t considered curable under Lemonade’s pet insurance policy.

Despite pre-existing conditions, pet insurance can be helpful with future expenses. It can help ease unexpected expenses related to diagnostics, surgery and medications. For example, surgery alone could set you back $2,000 to $10,000.

You might still need to pay for things like your pet’s allergy meds, but insurance could save you from high costs like those of surgery. Overall, pet insurance can help cover unexpected medical emergencies throughout your pet’s life.

Myth 4: A Savings Account Is a Good Alternative to Pet Insurance

Similar to having an emergency fund for your pet, pet insurance can also help protect you from unexpected costs and keep more money in your wallet and savings.

Let’s say you pay $30 a month, or $360 a year, for pet insurance with a $250 annual deductible and 80% co-insurance. If your cat is diagnosed with cancer, you could face a $10,000 vet bill between the diagnostics, procedures and medications she’ll need.

If you only have a savings account for your pet, you’d need to cover the full bill, which would quickly eat away at your emergency fund.

But with pet insurance, your costs for those vet bills could look more like this:

Lemonade pays: ($10,000 x 80%) – $250 = $7,750

You pay: $2,250

Pet insurance can help you cover the large unexpected costs so you don’t drain your savings and can focus on other financial goals.

Pet insurance companies like Lemonade offer customizable coverage tailored to your and your pet’s needs. Consider getting a quote today to see how affordable and flexible pet insurance can be and give yourself peace of mind knowing you’re prepared for the unexpected.