Is Pet Insurance A Scam?
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- เผยแพร่เมื่อ 1 มิ.ย. 2024
- I recently spent $9,000 on my dog Georgia (AKA Beans) because of health issues-would I have been better ahead if I had pet insurance? I run the math to see, and provide some tips for how you can get the most bang for your buck if you decide to get pet insurance for your furry friends.
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Mentioned in the Episode:
- Breed breakdown for pet insurance: www.marketwatch.com/guides/in...
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00:00 Intro
00:24 Analyzing the pet insurance quote
03:30 Pet insurance costs and stats
04:33 Getting the most bang for your buck
06:39 Ideal age to insure pet
08:14 How pet insurance works
08:43 Bottom line
09:20 Outro
Stay away from Lemonade. I got it for my cat, and when I needed to use it, they went back into her entire medical history to find anything that could be used as a pre-existing condition to deny the claim. At that point, I realized that they would never cover anything and cancelled the insurance.
They're also completely run by AI so good luck actually talking to a human instead of a bot. :O
I would like to add a couple of things. I've had Healthy Paws pet insurance for my Golden Retriever for about 7 years now. Overall, I've been very happy with the insurance. However, if you decide to get insurance for your pet, I suggest getting it when you pet is as young as possible. I started my policy when my pup was 8 weeks old so any conditions that he has currently would not be considered "pre existing". If you wait until your pet is older, ANY issues that they've gone in to see the vet for previously will NOT be covered (at least through Healthy Paws). Maybe other insurance policies are different so do your research.
Another factor to consider is the yearly premium increases. When I first got the policy, I believe I was paying less than $20/mo. My current premium 7 years later is almost $90/mo so the increase is considerable.
I will say that any claims that I have submitted (submitting through the app is really easy) have gone through the review process very quickly! Typically within 5 days so I'm really happy about that.
So, I'm happy with the policy overall but make sure you read the policy terms before you decide.
Only buy insurance for situations that have the potential to financially kill you. Buying insurances is a loss in average (that‘s how insurance companies earn money). So, from a statistical standpoint, buying only makes sense if the worst case scenario ruined you. From my perspective, pet insurance is a bad deal. If I need an emergency fund anyway because of the long processing times, then I am able to handle the costs and do not need the insurance.
I just didn’t want to have THE TALK with my family if a $10k+ emergency happened. The peace of mind and peace in the house are well worth the premium in my book.
And wouldn’t you know it, a $12k emergency surgery was required a few years ago. 90% covered, $2700~ out of pocket, and no delay in our decisions to save our pets QoL. Happy family; priceless.
The single incident covered 9.5 years of premiums. Also will help pay for eventual need for senior care, medicines, special dietary needs, etc.
Which insurance do you have?
what insurance was this??
Please respond with the company name
I think you have to know yourself - like if you aren't going to save $ every month for pet emergencies. I have pet insurance on my cat with a monthly $19.14 premium with $250 deductible and 80% reimbursement (much cheaper than a dog!) and just spent $3200 on 48 hours in the ER because she chewed up an Advil. I was so glad I had pet insurance. Even if I add up the 4 years of premiums I've paid plus the deductible I saved a thousand dollars.
Nice!
Which insurance
what insurance is this?
Nice breakdown, also not surprising! The nature of insurance is that you pay a premium for someone else (the insurance company) to maintain the majority of risk. It really doesn't matter if it's a house, care, or a pet. If you have sufficient funds, your best bet is keeping liquidity on hand and paying yourself an ear marked amount as 'self insurance' every month. A lot of real estate investors will completely drop their home owner's policy once their portfolio is large enough because they no longer need someone else to carry the risk for them, they can pay themselves and set the $ aside in a bond or high yield savings fund
I would not recommend Nationwide pet insurance. Worst experience with pet insurance provider I have ever had. I will be sure to never recommend them to any friends or family. Billed me for almost 6 months for my Dog George, and when I finally needed to use the insurance I had to jump through 50 hoops only to get denied on some BS. Do you research and find a more reputable provider.
I agree. They do EVERYTHING possible to deny a claim. We’ve been dealing with appeals for years because of this.
Thank you for information. I was thinking about getting this insurance for my Siamese kitten 2 month old baby.
For sure! There are a few good brands out there. Just not Nationwide.
Fun video! Thanks Katie. As a veterinarian I have started recommending pet insurance to pet parents with how prices have gone up so much. My two cents: Make sure you get at least 10k covered or unlimited by the insurance company.
Sometimes I wonder if u guys r working together!? 🧐
@@tinyfairy2162insurance is the reason human medical is so expensive.
@@tinyfairy2162 I know right.
Pet Insurance: Will reimburse you for the money you physically don't have available??? Hmmm...🤔
@MrNotetyme2012 Some of the vet office in my area have Trupanion that have "pay direct", they bill the vet directly and I would just be responsible for the deductible and 10% of the bill.
It's a gamble having pet insurance, cause I you also have to make sure I keep up-to-date with wellness/preventive care so they don't deny you later on in you dog's life; dental check up one's every 12 months are the big one.
I would rather pay monthly insurance than having guilt eats at you everyday. The what "ifs" and "maybe" my soul dog would still be alive.
I use Lemonade for dog insurance and a nice benefit is that you are reimbursed almost immediately in some cases and others within a week, so a very quick turnaround. That said I think it also depends on where you live. If you live in NYC, the costs for vaccines, vet visits, etc are higher in general so insurance tends to cover less of the total. I tracked every vet visit expense last year with our Lemonade puppy coverage and ended up saving ~$190 with insurance (no major accidents, these were all pretty regular check ups/tests/vaccines), so I learned that it would have almost evened out having vs not having. Overall I like having the insurance for peace of mind in case a large unexpected event happens.
I use Lemonade as well for my German Shepherd/husky mix. And we didn't wait long for the reimbursements. The app is very user-friendly. I usually use it for vaccines/regular checks. And did a dental cleaning that they reimbursed as well!
I have Lemonade too. It was $300 the first year, which I almost made up for in a vet check-up and vaccines. This last year because I needed fewer vaccinations, I didn't come up to the amount. Now it's $450 and I'm debating. My dog had an ear infection this year. Come to find out a lot of the exam stuff isn't covered so that didn't go on my deductible. I'm still $250 short of my deductible so it's all been out of pocket.
Been looking into pet insurance but curious about the denied claims...thanks for starting the convo and running these numbers!
I'm glad you found it useful!
Great informative video with real data! I loved that you didn’t recommend a specific insurance company. More credibility! Good job!
Totally a scam. My cane corso ended up having pancreas failure, and has to eat Pancreas enzymes from now on(thankfully easy fix.). Insurance denied the whole thing through n through other then her initial visit.
-They said it wasn't a medication at first. But a dietary supplement...
-They said Pre-existing conditions aren't covered...
-They said alternative treatments were available(a synthetic pancreas enzyme that cost way more.)
-They literally pulled everything US Healthcare did in the 90s and early 00s.
PUT THE MONEY INTO A MUTUAL FUND and have it make you money until/if you need it instead.
Awesome video, this was very helpful. Thanks Katie!
Problem is, my pet insurance plan (as I’m sure they all do) denied claims every time I’ve ever had a valid one. And mine wasn’t an annual deductible but suddenly per claim for my cat. I definitely had to jump through hoops. To get one approved. It was a test to see if the insurance does what they advertise. When I asked about cancellation they threatened that it would be hard if not impossible to get pet insurance anywhere. And after getting paid out a small amount they raised the premium by $20/year. I have another healthy cat with insurance as well. So be prepared to fight for every claim even with good vet notes and letters! Another thing you didn’t cover in your video is a pet with a preexisting condition will not have claims paid out related to it. And anything the insurance thinks is related! You should at least be aware of that. Save your money!
Trupanion can be used to pay at the vet. Mine covers 90%, less the exam fee.
If you put in claims your premiums will increase. Also if your pet gets diagnosed with a disease your premiums increase.
As a dog owner for quite a while...pet insurance is a gamble. I've had dogs for years and I have l looked into pet insurance and in my experience some dogs only need to go to the vet for their yearly check ups...like my two poms who never got ill until the very end of their lives and then there was my Ziggy who was a mixed breed and cost me so much due to one thing or another (early arthritis, diabetic, eye surgery to remove cataracts and on and on) that I know I put a couple of vet techs through college. What was best for me was getting a credit card(with low interest rate) that I only used for the dogs and their expenses. I did save money in the long run because my poms never truly got sick until the very end...so paying insurance for 3 dogs would not have been cheaper for me at all.
I'm gonna go against the grain here and say that's precisely what insurance is for. It's like saying, I never got into a car crash in 30 years of driving, so look at how much money I wasted on all these auto insurance premiums. It's there as "insurance". You're never supposed to save money on insurance in the long run (that is, claims >> premiums paid), because if you did, insurance would never exist. Think about it. The whole idea of insurance is for everyone to have it so that the people like you who rarely use it make up for people who have dogs that definitely need it. That's why people pool their monies together to form an insurance group. If everyone with pet insurance used it and got more monies out (claims) from what they put in (premiums), insurance companies would all go bankrupt.
Thank you for the information. I have a 8 month Akita Inu, over the five month that I had him, I paid over $1500 to Vet for various small health issues and vaccinations. I wondered if I was better off if I bought pet insurance in the beginning. The quote I got was $300 annual deductible, $5000 annual payout, and 80% reimbursement rate, and the monthly premium is $90.22, which is insanely high for an Akita Puppy. Akita definitely make the top list for most expensive dog to insure. Even the cheapest option with high deductible is $65 a month. I would never know he would have this many issues in the puppy hood. I think I will make my decision after he reaches 1 year out, and pay any potential vet fees myself.
Trupanion has a unique setup - you pay toward the deductible ONCE in the lifetime of the pet - but each issue has it’s own deductible (dental / hips / etc.)
+1 -- I think Trupanion's set up changes the deal a lot. It helps hedge against being unlucky and having a dog who needs a bunch of help (including, e.g. ongoing meds)
I took the chance of not having my two cats insured the last couple of years and I ended up having to pay approximately $7,000 for both of them in two years they could have been covered by insurance. I don't recommend Embrace Insurance because it's probably one of the most expensive out there. I currently have Pe'ts Best which is quite affordable for unlimited coverage at 90% with a $100 deductible. But I'm planning on switching to Pumpkin. The reason I chose pets best initially was because they had only a 3-day waiting. For accidents and my previous insurance went out of business and I waited too long to make my decisions so I had to have some kind of coverage quickly.. from what I remember, pumpkin is an even better value for the premium amount. But definitely not embrace! I also had ASPCA insurance for many years and they were great and paid like they were supposed to but now they have hardly any options to pick from as far as deductibles and coverage amounts. By the way my seven-year-old cat that's just a type of cat is insured by pets best for $57 per month so the cheapest rates definitely go to very young animals and the older they get the more you're going to pay! Plus you need to get them insured before they had pre-existing conditions because no company will cover them considered a curable pre-existing condition and then they may have a 180-day waiting time between the illness and the ability to have their pet covered. Last thing I will say is that my most recent company, Bivvy reimburse me within two to three days typically for the claims that I submitted. I only have them for a year and it was a very cheap payment for 50% reimbursement. Unfortunately they're not accepting any new applicants. I think the best reason to have it is to prevent what is called economic euthanasia.. if you take your pet to an emergency room and they tell you that you need to give them $3,000 and that is only a down payment for potentially a $6,000 to a $10,000 bill and you don't have it, and you don't have a credit card with that much available or a credit line, then what are you going to do? Most people are not going to have a separate savings account for their pets because they think they will always be healthy and even young dogs can become extremely. I have one many years ago that developed severe seizures at the age of six years old about time I spent about $6,000 saving her life. It was after that that most of my pets have been insured because I had to use a credit card and thank God I had it, but I had to pay interest on it for a couple of years.
Exactly. Well said.
So Pet’s Best is what you recommend?
This is how insurance works. Car insurance, Health insurance, home insurance, any insurance. You pay the premium every month, and most of the time you will never use it. But when you do need to use it, it's there.
You. Are dope. Thanks for being so real. I'm about to get a little 8-week border collie girl, and I was trying to decide between Fetch and Lemonade.
🫡 (And congrats on the pup!!)
I'd rather raise by deductible first before getting a limited coverage. After all, it's disaster you want to insure against, not an inconvenient bill.
Cruel but true growing up the only pet insurance my dad had was a shovel and a bare spot in the backyard...
Hi, thanks for your information on pets insurance.
I have two dogs and two kittens, can you do a review on Healthypaw insurance and how it works and if it good to get?
I’m new on shopping on pets insurance and I don’t know much about it.
Please 🙏 respond on this matter…. I will thank you 🙏 so much.
I unfortunately don't have Healthypaw, I'm sorry!
This is super helpful. Thanks so much!!
Just one more aspect of our economy being taken over by Wall Street/Private equity firms.
The answer for us is simple. We have two pets and when they come to pass, we will never own another pet!
I have had pets best insurance since I have my 3 year old Boston terrier. I don’t know how my insurance making any money. My Boston has really bad allergies and he’s has to take meds and a shot every month. My insurance is 80 dollars a month and it my meds has a 5 dollar copay and my dogs shot that she has to take every month has a 10 dollar co pay. Both of the shots and the pills costs close to 200 a month. Last month my dog sprain her ankle and the er bill was 700 dollars and all I had to pay was 50 dollars. It saves me lot of money!!! My plan doesn’t have a cap and it has a 250 annual deductible. My insurance is really good at paying me with in 2 weeks of my claims. I talked to my claim rep. She told me if it’s a new claim for a new illness it takes a month to get the new records but if they treat it more then once then I get paid within a week or to straight to my checking. Account. No complaints.
What is your insurance?
I think it says Pets Best in the comment... it's just not capitalized, so you may have missed it😊
Thank you. I'll wait till my puppy is 5!
I hope it helps!
We insured our pup when she was around 3 years old. She’s now 5.5 years old and ended up getting IVDD this past week. That unexpected bill would have been $10k but the most we’re paying is $1500. So I personally suggest getting pet insurance
I understand the pay out evens out *IF* you save that money each month(probably more advantageous to not get insurance if you adjust further by inflation), but most people don’t actually put that money aside
Great callout though, you should totally have the money upfront, have something to leverage or get a personal loan. We had to pay the $10k right then and there then wait to get reimbursed. Alternatively you could get a quick personal loan through something that doesn’t charge a prepayment fee like lightstream and then pay it off outright once you get reimbursed. I personally only think it’s worthwhile if your pet is young enough to lock in without pre-existing conditions
If your dog is older or has a pre-existing condition and you don’t have the means to pay a $10k bill, getting a personal loan through something like lightstream is your best bet. As of today, a $10k loan over a 72 month term is $197/month
hello, my dog was just diagnosed with IVDD too which insurance do you have please? I'm trying to find a pet insurance for my dog but not having any luck.
@@samanthajones6365 we used Pumpkin but unfortunately you would have needed to be insured prior to the illness. If not, they unfortunately consider it a “pre-existing” condition
@@samanthajones6365 either way, I’m so sorry you and your pup have to go through this
I get it but people just dont seem to understand insurance is for coverage in case something happens. You never know in life, your never going to find an insurance where you come on top. Its just there to help you. Thats whats its all about. You bet your life and health that it wont happen but if it does your covered. Its a risky bet and gamble your willing to take. Because depends on the illness or accident at the end of the day. If the dog got cancer and needed treatment and the expenses were more then 15k or 20k there is no way you could of save that much on expenses in 1 year or 2. You would be in the whole. Instead of a broken leg or injury which would be less money. So in the end is a gamble and some people decided coverage of loosing money then risking it and saving more money in the long run.
And pet insurance is even more of a gamble than most. These companies seem like much more scam-like than most other insurances (like home owners, car, human healthcare). They will do whatever they possibly can to not pay. I had paid around $5k over the course of 4 years to cover my 2 dogs. Most of my claims were nothing much, a vet visit for broken claw, a large sliver, ear infection, no big deal they covered these things maybe $500 they paid out over those 4 years.
But, recently my dog has had some limping trouble and I had to go get an X-ray for her, she wasn't being chill about it so they had to sedate her, it ended up being about $600. She's 6 years old now, but when she was about a year old she somehow hurt her paw and they had to do X-rays then as well. The vet back then figured maybe a ligament strain as he saw no broken bones, rest it, ice it and some anti-inflammatories, was completely better in a few weeks. The insurance company demanded more medical records when I submitted for this most recent X-ray, and when they found she had an X-ray before on a front limb, they immediately called her issue a pre-existing condition and denied the claim. Even though for the last 5 years she literally had no other issues relating to the hurt paw.
I've never had that kind of trouble with any other type of insurance. It is usually pretty black and white what they cover and what they won't.
Needless to say this made me realize I had essentially wasted $4,500 over the last 4 years and immediately cancelled the pet insurance. I have no issues saving money, so I would have had that in a bank account had I realized they can essentially call whatever they want a pre-existing condition.
It’s a gamble with insurance as the claim has to be approved. And that’s not a given!
So what pet insurance you recommend?
Cost $82 a month for my 3 year old Doberman for 20k/$500/80%
I have three dogs, which is 150 a month with pets best. First time having a dog lol so im trying to figure out if it's good to have pet ins,
What are your co-pays and do you have to pay up front or does the insurance cover it in the beginning.. I have Hannah the pet society and they cover literally everything I have no paperwork at all I go in get what I need and then get out
Got it, don’t waste money on pet insurance. Make monthly investments payments for Fido and if there’s an emergency pull the money out.
So pet insurance is like all insurance and shop aroumd
Insurance for your pet can be either an illness, an accident or hereditary condition that pure bred pets are prone to develop. Be prepared and don't wait for the unexpected unless you like to gamble
Salmon Beans
This day and age is insane! "Just $10,000.00." ?!?! How much money do you make lady!? Ten grand is a lot of money! I love my dog and all but just 20 years ago people paid that sort of money sure to fix your kids up or mom and dad up, or brother and sister but not the dog. I guess nowadays people don't really have families so much as they have pets. If you had a time machine and told people in 1984 that people in the future pay tens of thousands of dollars to keep their pets alive they would think either you were full of shit, or that people of the future have lost their minds. Back then if Spot had cancer, it was tough shit for Spot.(Spot used to be a popular dogs name.) Note: No one seems to know anything anymore so I feel like I have to explain things like that.
70% of the claim but 100% of the premiums yeah that sounds like pet insurance alright.
Pet Insurance: Will reimburse you for the money you physically don't have available??? Hmmm...🤔
I hate insurance. Bascially if they need thiusands to survive they r prob ded
The bottom line is don't get a pet unless you can afford it. An average dog can cost 50k over their lifetime. Too many abandoned pets in shelters because people are stupid.
At least some people try to give them homes. Sometimes people situations change with their health or their marriages or other issues that they can't keep their pets. But for me yes I consider pets to be a lifetime commitment and I would not want to have one unless I'm pretty certain I could afford to take care of them for the rest of their life.
@@Savannah-ed4rvthank u for this comment and for being real and not saying ppl are stupid instantly just because sometimes life happens ..
Exactly
You aren't by chance being paid by "Lemonade" and "Fetch" to advertise them are you? Everything is a commercial.
Nope; this was unsponsored.
No
clean your mic!
$88 x 12 = 1,056
$1,000 deductible
10% you still owe
That means your dog needs to run a $2500 yearly bill every year just to break even.
And that's only if the bill is "accepted"
BOOOOOOO
Whoa, Honey, you missed a BIG one. I used to have the most beautiful, amazing dog every, unfortunately passed from gastric dilation volvulus - aka BLOAT. My Great Dane had the misfortune of getting this as many giant breeds do. December 10th several years ago at an ungodly hour of the morning, she started and tried to fight for her life for many hours speeding to get her to two different veterinarians. this first unwilling to help, the second one willing all it did was buy her a few hours and it cost several thousands of dollars. In the end I lost my giant baby girl. I had no insurance but I told them to do anything she needs done in order to survive because I will get the money in some way. I had a friend who was a musician, a great musician from Texas (I am in western Canada) and without me having to even asked, he offered to perform a concert for Magna to benefit from. In the end, I had enough to pay for her surgeries and cremation but sadly all in vain as I said, my giant baby girl died and I was surprised to not see Great Danes listed as they are costly in such conditions.
Great Info, you are worth your weight, as a researcher.
wish I came up with the scam before them.
Who the fck would get insurance for a animal? There's plenty at the shelter which kill them if they are not adopted in a certain time.