Savings Accounts vs. Medical Pet Insurance
With Trupanion, Glendale is able to provide pre-approvals in minutes and direct billing so they pay us allowing you to avoid large unexpected payments and waiting for reimbursements.
You never want to think about your pet being sick. However, not thinking about it is not a reliable way to protect your pet in the future.To prepare for medical emergencies, we recommend examining your financial options before anything unexpected happens to your pet. It may help to prepare in one of two ways:
Open a designated savings account to pay for your pet’s medical bills
OR
Enroll your pet in a medical insurance policy
The pros and cons of savings accounts. Paying for your pet’s medical bills out of a designated savings account seems like a great idea. Some pet owners will put set amounts of money in a savings account every month, hoping they will be prepared for any situation.
However, savings accounts are not always a reliable way to pay for your pet’s medical bills. There are a number of disadvantages pet owners should be aware of before entrusting their pet’s care to a savings account.
THE PROS AND CONS OF SAVINGS ACCOUNTS
PUT MONEY AWAY ON YOUR OWN SCHEDULE
Insurance companies require monthly contributions.
If you rely on a savings account, you could put away money as often as you like.
LUCKY PETS
If you have a lucky pet who doesn’t require medical treatments over their lifetime, it’s possible to have extra money set aside at the end of their life.
NO "MIDDLE MAN"
You could pay for treatment directly without having to process anything through a pet insurance company.
REQUIRES DISCIPLINE
We like to think we could put away money in savings accounts, but we don’t always have the willpower. Occasionally, we may decide to skip months of saving because we want to spend money on something else.
UNLUCKY PETS
If your pet is unluckier than you planned for, your savings account will not have enough money for their treatments or follow-ups.
If your pet is unluckier than you planned for, your savings account will not have enough money for their treatments or follow-ups.
EMERGENCY WITHDRAWS
Can you promise to dedicate a savings account to your pet’s medical bills and nothing else? If a home or auto emergency happens, will you be tempted to dip into your pet’s savings account?
Can you promise to dedicate a savings account to your pet’s medical bills and nothing else? If a home or auto emergency happens, will you be tempted to dip into your pet’s savings account?
PRE-EXISTING CONDITIONS
Unfortunately, having one medical condition won’t prevent your pet from developing other issues. It can become a race to keep up with current medical costs while continuing to save for other issues that may happen in the future. Just like humans, pets tend to experience more health issues as they head into their golden years
Unfortunately, having one medical condition won’t prevent your pet from developing other issues. It can become a race to keep up with current medical costs while continuing to save for other issues that may happen in the future. Just like humans, pets tend to experience more health issues as they head into their golden years
MONEY NOT IMMEDIATELY AVAILABLE
This is the biggest disadvantage a savings account presents. It may take years to save up the thousands of dollars that common surgeries cost. What if you’ve just started saving up and a big emergency happens? You don’t yet have all of the money in your savings account that you would need to treat your pet. Savings accounts may not work like you expect.
This is the biggest disadvantage a savings account presents. It may take years to save up the thousands of dollars that common surgeries cost. What if you’ve just started saving up and a big emergency happens? You don’t yet have all of the money in your savings account that you would need to treat your pet. Savings accounts may not work like you expect.
SAVINGS ACCOUNTS MAY NOT WORK LIKE YOU EXPECT
- Opening a savings account may feel like a smart decision, but saving accounts often fail to pay for your pet’s medical care.
We all hope our pet’s savings account will look like this:
- Let's say a pet owner starts a savings account for their 2 month old puppy.
- They deposit $100 initially and add $50 a month.
- At a rather generous interest rate of 2%, this will produce $3,262.88 after 5 years.
However, can you guarantee that your pet will be healthy for those 5 years while you’re saving away money?
What if something happens to your pet before you have enough money saved up?
This is the biggest disadvantage a savings account presents. It may take years to save up the thousands of dollars common surgeries cost. Medical insurance for pets is there to help whenever your pet has a new injury or illness.
WHAT ACTUALLY HAPPENS WITH A SAVINGS ACCOUNT
If you’ve built up two years of savings for your pet’s medical care and they eat something they shouldn’t (like a sock or a piece of string), you’ll wipe out your entire savings account to get that item removed. And what if they continue having digestive issues and need follow up treatments? And what if a few months later they get sick and have another trip to the veterinarian?
In reality, here is what your savings account will probably look like:
In reality, here is what your savings account will probably look like:
DEDUCTIBLES
A deductible is the portion of the veterinary bill you're responsible for before the 90% coverage starts. Depending on your pet’s medical condition and your chosen deductible amount, deductibles can be paid all at once or chipped away at over time.
Deductibles can be difficult to understand, even in human health insurance. Our deductible was invented to help your pet and protect your wallet. We think it’s important for you to know exactly how you benefit from a Trupanion policy that features a lifetime per condition deductible that you can change when necessary.
Deductibles can be difficult to understand, even in human health insurance. Our deductible was invented to help your pet and protect your wallet. We think it’s important for you to know exactly how you benefit from a Trupanion policy that features a lifetime per condition deductible that you can change when necessary.
Trupanion policy is unique because we offer a lifetime per condition deductible. You pay a deductible only when your pet develops a new condition.
Once your deductible is paid, your policy begins paying out at 90%for anything related to that condition for the rest of your pet's life.
Most pet insurance companies offer an annual deductible. However, we are against making owners pay multiple times for a condition that is diagnosed once.
Once your deductible is paid, your policy begins paying out at 90%for anything related to that condition for the rest of your pet's life.
Most pet insurance companies offer an annual deductible. However, we are against making owners pay multiple times for a condition that is diagnosed once.
CLEAR UP ANY CONFUSION ABOUT LIFETIME PER CONDITION DEDUCTIBLES
MYTH #1
You'll pay more with lifetime per condition deductibles. Trupanion invented the lifetime per condition deductible to help pet owners save money. You're not guaranteed to save more by having an annual deductible. MYTH #3
You have to meet your deductible every year. Why pay every year for something your pet was diagnosed with once? Once you meet your deductible for one condition, you never have to pay it again. |
MYTH #2
You pay a deductible every time you go to the vet. Sometimes it takes more than one vet visit to meet a deductible. However, you don't have to pay a deductible every time you visit your veterinarian. MYTH #4
Your coverage is limited because of the deductible you choose. A Trupanion policy gives you one simple plan with top coverage, no matter if you have a high or low deductible amount. |