We all love our pets and consider them great companions to our family and us. It is also true that we try our best to keep them safe and healthy. However, the susceptibility of developing an illness, injury, or disease in pets is similar to humans.
You have to take care of your pet(s) properly to prevent many illnesses. But what if a pet suffers from an illness or disease which can produce a financially panic situation for you? What if you are not able to pay the medical expenses for the treatment of your furry friend? From where can you get the financial help to deal with emergency medical conditions in your pets?
Veterinary treatment bills can run into the hundreds and sometimes thousands of dollars, depending on the type of treatment your pet needs. What is the best way to deal with these situations? The single answer to all these questions is a Pet Insurance Policy.
Just like Health Insurance Policy for Human, you can also have a pet insurance policy for your pets’ safety, security, and health.
In this article, we will explain the essentials of a pet insurance policy. But before we proceed, it is essential to know what exactly are Pet Insurance Policies.
What is a Pet Insurance Policy?
A Pet Insurance policy, also known as Pet Insurance, is coverage purchased by a pet owner to get financial help from the insurer to deal with expensive veterinary bills. It works just like a human Health Insurance Policy.
The policy-holder (pet owner) can claim specific financial coverage to pay the veterinary bills for the treatment of their pets. The limit of the claim depends on the worth of the pet insurance policy and the premiums you pay monthly.
With a pet insurance policy, you don’t need to worry about the treatment expenses in case your pet gets sick, injured, or suffering from any illnesses. Some pet insurance policies also cover the costs of expensive veterinary procedures.
Now you know what pet insurance is, let’s explore the different types of pet coverage you can get for your lovely companion(pet).
What are the different Categories of Pet Insurance policies?
Pet insurance policies can be divided into two broad categories depending on the validity period and coverage limit. The two categories are:
- Lifetime Pet Insurance Policy
- Non-lifetime Pet Insurance Policy
We will discuss both of these categories separately.
Category 1: Lifetime Pet Insurance Policy
As the name implies, Lifetime Pet Insurance Policy is for the whole life of your pet. This insurance policy is the most expensive pet coverage you can find. It offers the most comprehensive protection you want for your pet.
The basic feature of a Lifetime Pet Insurance Policy is that it provides you with financial coverage up to a maximum amount to pay hefty vet fees. Lifetime pet coverage is reinstated every year.
Related Article >>> Pet Insurance Coverage – What it covers and what it does not.
Suppose you want your pet to be covered for a wide range of medical conditions, injuries, and illnesses throughout their life. In that case, a lifetime pet insurance policy should be your preference.
Although this policy provides coverage for all types of illnesses and injuries, it is specially designed to cover the expenses for the treatment of chronic or recurring conditions during your pet’s lifetime. It is a highly attractive pet insurance option because it provides maximum coverage.
Different types of Lifetime Pet insurance policy
Lifetime Pet insurance policy has two major types: Annual Limit Per Condition and Condition Limit.
1. Annual Limit Per Condition:
The Annual Limit Per Condition Lifetime Pet Insurance Policy comes with an annual limit of coverage which you can claim for each potential medical condition once a year. The limit will be reset every year.
If you choose the Annual Limit Per Condition type, the maximum coverage you can claim from your insurance provider for the treatment of a specific medical condition would be the maximum amount per year mentioned in the insurance policy.
Let’s say your annual limit is $8000, and your dog developed arthritis. In that case, the maximum coverage you can claim for the treatment of arthritis is $8000. If the veterinary bills for one year cost you $7500, your dog would be completely covered by the lifetime pet insurance policy because your annual limit is $8000.
However, if the treatment costs $9000, you would have to pay $1000 from your pocket.
At the start of the new year, the coverage will be renewed, and you can again claim up to $8000 for the treatment of arthritis.
Annual Limit Per Conditions lifetime pet insurance policy is highly beneficial for the people whose pets require regular treatment for chronic medical conditions. The treatment can continue across the policy years without interruption. You would get continuous coverage from your insurance provider to pay annual veterinary bills.
It is important to mention that the annual limit applies to each specific medical condition. So if your pet is unfortunate enough to have both diabetes and arthritis in the same year, you can only claim up to $8000 (in this example) for the treatment of both conditions.
2. Condition Limit Lifetime Pet Insurance Policy:
The second type of Pet Insurance Policy is Condition Limit coverage. In contrast to the Annual Limit Per Condition, the Condition Limit has a lifetime limit per condition.
For example, a lifetime dog insurance policy might have a $70,000 condition limit. That would cover you for $70,000 for arthritis, $70,000 for diabetes, $70,000 for cancer, etc. As long as you don’t go above that limit during the entire time you hold the policy, your claims will be paid.
Category 2: Non-Lifetime Pet Insurance Policy?
In contrast to a lifetime pet insurance policy, a non-lifetime pet insurance policy does not cover your pets throughout their life. It is a less comprehensive pet insurance policy as compared to the lifetime pet insurance policy.
There are three types of Non-Lifetime Pet Insurance Policy. Let’s explore each one.
1. Time-Limited Non-Lifetime Pet insurance policy:
As the name implies, a Time-Limited Non-Lifetime Pet Insurance Policy is valid for the specific period for which it is purchased. Most of the Time-Limited Non-Lifetime Insurance Policies last up to 12 months from when your pet’s illness first started.
2. Per Condition Non-Lifetime Pet Insurance policy:
Per condition coverage of a Non-lifetime pet insurance policy is the short version of Condition Limit Lifetime Pet Insurance Policy. In this type of coverage, you would be paid a limited amount for each condition. Once the limit is reached, you would no longer be entitled to coverage.
3. Accident Only Non-Lifetime Pet Insurance Policy:
Accident Only Policy only covers the expenses of treatment of injuries to your pets caused by accidents. It is the most basic level of Pet Insurance Policy.
Bottom-Line
A Non-Lifetime Pet Insurance Policy does not include the pre-existing conditions when you renew it. That’s the reason a lifetime pet insurance policy is highly recommended.
The condition limits or annual limits in the case of Lifetime Pet Insurance policies depend on the worth of the pet insurance policy you are buying. If the cost of the policy is high, you will get high coverage limit for each specific condition. Still, you also have to pay a high monthly premium.
Therefore, it is best to consider your needs while choosing a pet insurance policy. If your pet needs only basic coverage, Non-Lifetime Pet Insurance Policy would be a good option because it is cheap.
However, if you are looking for maximum coverage for the treatment of chronic medical conditions, a lifetime pet insurance policy should be your preference.
