Pets are rewarding, supportive, and truly become family members. So naturally, the question may arise – should you invest in a pet insurance plan? After all, life insurance is encouraged for humans, so why wouldn’t we protect our furry friends? There are a few pros and cons to consider in the decision to purchase pet insurance.

Three pros of pet insurance:

It can supplement your emergency fund.

As a pet owner, part of your emergency fund should cover unexpected vet visits, illnesses, or injuries. Adding pet insurance can help to bridge the gap between what your cash can cover and any unexpected large medical bills.

It provides peace of mind.

An unexpected trip to the vet would be hard enough without the added worry of how it will be paid for. For example, what if your pet was in an accident and needed surgery costing $10,000? Do you know how you’d pay for it? Pet insurance can avoid making life-changing decisions, solely off of cost, by providing that safety net.

It is flexible.

There are different levels of coverage to suit your needs and it is typically easy to navigate the options. A low level of coverage means lower monthly payments. You might choose a wellness-only plan, or an accident-only plan, depending on your preferences. You can also choose to visit any vet instead of finding one that accepts a certain plan.

Here are three cons of pet insurance.

It is not cheap.

Having a pet is not cheap as it is. Adding another layer on top of the routine monthly expenses can push you over your monthly budget. The monthly cost for insurance depends on the age, breed, and health of your pet. It often begins at $40-$45 a month. Monthly payments for older pets can cost many times this average. Once you calculate your monthly expenses for having your pet and add in pet insurance, it can be costly.

Coverage can have limitations.

There are different levels of coverage that can be selected to fit your needs. Typically, claimed expenses are not all covered at 100 percent. Some pre-existing conditions may not be covered at all. There is likely a deductible to be met per year before coverage kicks in, requiring you to pay a sum of cash out-of-pocket and all expenses are reimbursed rather than directly paid for by the insurance.

Monthly premiums can exceed typical vet costs.

Insurance protects in case of the unexpected. It’s possible to have healthy pet years, therefore spending much more on insurance payments than you would spend at the vet in a year. Consider it fortunate if you don’t have to use the insurance. If the unused expense makes you cringe, maybe building a larger emergency fund is a better choice for you.

Bayntree is here to help you navigate life’s financial decisions. Please schedule an appointment on Bayntree’s online calendar by selecting the date and time that is most convenient for you! You can also always reach us by emailing info@bayntree.com.

Bayntree Wealth Advisors provides comprehensive financial planning and wealth management. The Bayntree team specializes in all aspects of financial health, including retirement planning, risk management, investment advice, tax strategies, estate planning and insurance.

Bayntree does not provide specific legal or tax advice. Please consult with your tax advisor or legal professional for guidance with your individual situation