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Pet Health Insurance, Pay Day Loans and More
4. Pet Health Insurance
When Barry Trachtenberg got a German shepherd-mix puppy last year, his vet recommended that he sign up for a $20-a-month health plan offered by Veterinary Pet Insurance, America's largest pet insurance company. "They make a lot of promises about how great the coverage is," says the 38-year-old college professor, who lives in Albany, New York. He was disappointed, however, when the plan refused to cover a $241 claim for treating diarrhea. The illness, VPI said, had occurred during a 14-day waiting period before the coverage kicked in.
Weeks later, the puppy came down with another stomach bug, requiring an $800 overnight hospital stay. Again, VPI denied the claim. "They contended that it was a preexisting condition," says Trachtenberg, who appealed the decision. "All they refunded was $14."
Americans spend an estimated $195 million annually on pet plans, which typically cost $11 to $50 a month. Over a pet's 11-year life span, that can add up to as much as $6,600-hefty considering that vet bills for a typical pet average about $4,000 over a lifetime. The policies are loaded with exclusions, and some don't cover vaccinations. A VPI spokesman says, "Pet insurance shouldn't be evaluated on the possible return on investment."
Raymond Hinkle, DVM, director of Hilltop Animal Hospital in Barrington, Illinois, says, "Most pets are healthy, and that's what these companies bank on."
The best advice: To take the sting out of vet bills, factor the cost of routine care-about $453 a year for a dog and $363 for a cat-into your budget, along with a few hundred dollars extra for emergencies.
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