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| Photo Credit: Benold Financial Planning |
"An information and learning commons to jointly develop the financial acumen we fear we don't have."
I did it because the issue of not knowing where to start had emerged as a theme in both random discussions and on our annual employee survey. After a lifetime spent managing the financial affairs of small businesses and nonprofits, I figured I've learned enough to lead self-help discussions. I don't think of myself as a financial expert, just a knowledgeable amateur.
Thursday, June 2, 2022 - To Buy or Not to Buy? That is the Question.
Today's rumination: Pet Insurance.
Before you roll your eyes and scroll away, consider this: If you have a pet, you never want to be in the position of having to resort to euthanasia because you can't afford a treatment that could cure what ails her/him.
Cold and gruesome? Yes. But also true.
I've owned dogs all my adult life. They are always rescues, they are usually hearty--and, over time, they all get old. Sparks, our current furry family member, is 12 now. We got him when he was just 9 months old. He's the first animal on which I have ever had pet insurance.
I always considered pet insurance kind of silly--until my last dog, Jenny, a raggedy bull mastiff, had a difficult-to-remove malignant tumor. The operation was expensive and it came at a bad time in our financial life.
After anguishing for a couple of days, I bit the bullet and went ahead with the surgery because our wonderful vet said, "Removing this cancer is beyond my skill, but I can recommend someone. If you don't remove it, the cancer will spread and Jenny will die. She's young, healthy, and has a lot of years left. It's a hard decision, I know... we will support you whichever way you decide to go."
Jenny lived another 5 or 7 years after the surgery. She had very few health issues. Hard as it was to pay the bill for that operation, I never regretted the decision.
Several years after he joined the family, my employer (led by me) negotiated a 10% discount on voluntary, employee-paid pet insurance. I enrolled Sparks, another singularly healthy animal, for accident and illness insurance. I passed on routine health maintenance coverage. I picked a deductible and a benefit level I could afford. Privately, I wondered if I was losing my grip in deciding to buy such a frippery.
Time has proven the wisdom of that decision.
Sparks is slowing down now. Just like the rest of us, he's had some health challenges. His issues have been few--but one was a big ticket item, a cancerous mass that needed to be removed. What a different experience it was to make that decision!
Insurance paid 80% of the cost.
That one big health issue occurred a year after I bought the policy. It resulted in my being reimbursed an amount equal to half of all of the premiums I've paid over the life of the policy (5 years).
In the final analysis, insurance--any kind of insurance--is a risk management tool. The choices that you face as your family risk manager are the same as those faced by business managers. You can Accept the Risk, Reduce the Risk, Transfer the Risk, or Avoid the Risk. Buying insurance is one way to transfer the risk--or at least a portion of it. Looking at it from this perspective, pet insurance is no different from car insurance, life insurance, or property insurance. Each of them allows you to offload some amount of risk to a third party.
It's no fun paying premiums year after year. But when you need it, the relief that the coverage provides--both to your pocketbook and to your heartstrings--is immeasurable. I thought about that when the vet told us yesterday that Sparks has arthritis.
The good news? Regular medication could help him stay mobile and active. The other good news? Insurance will cover 80% of the cost.
Here are some pro/con lists for anyone who might want to consider pet insurance as one way to remove the financial element of a life-changing decision with regard to a fur friend:
For those ready to take the plunge, here are some rankings of providers:
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