Why Not Be Your Own Pet Insurance Company?

                 

 Why not have your own pet insurance company?

  It's the middle of the night and you're at the emergency pet hospital with your dog. It was discovered that he had broken his back leg and needed orthopedic surgery. Surgery will cost $2,500, with hundreds of dollars after care and physical therapy. Sound familiar or scary? This is why the pet insurance business is one of the fastest growing pet-related industries.

How pet insurance works

Pet insurance companies are not charitable groups looking to help you in times of financial need. They are profitable businesses. The reason they are profitable is because they know that the risk of paying pet owners is less than the amount they receive in total monthly premiums. They also know that your pets are less likely to need extensive care when they're young, so you'll have paid more than enough in monthly premiums by the time they're post-pets. Payment will be required in years of Why are these facts not taken advantage of? Be your own insurance company and retain any unspent funds.

Pet savings accounts

Standard pet insurance policies range from $35-75 per month, depending on coverage and deductibles. Why not put the same amount into your pet savings account? The account will cost $420-900 a year. According to the American Veterinary Medical Association's pet ownership statistics, the average household spends just $378 on veterinary care for dogs and $191 for cats annually. Your account will easily cover these expenses.

Over the course of your dog's life, the account will grow to ensure the pet is cared for in later years. If you treat annual exams and vaccines as a "deductible" and pay for them out of pocket instead of out of pocket, especially during your pet's early, healthy years, the bill can be even bigger in later years. will go

Another way to protect your pet savings account in the early years is to consider adding a "catastrophic" pet insurance policy. These are less expensive than larger policies and protect against a serious injury or illness. Eventually the policy can be dropped as the savings account grows.

A Consumer Reports analysis of pet insurance policies agrees that self-insured pet plans are superior. The odds are in your favor that there will be money left in your pet savings account after your pet dies. You keep the money that would have cost the insurance companies as monthly premiums and profits. Feeding a quality diet and maximizing your pet's health will also reduce veterinary bills and increase the value of your pet savings account.