When I was thirty, before we had kids, we adopted an 8 or 9 year old beagle named Tobey.
There was a local shelter hosting an event outside of a Petco and we wanted to rescue a dog, so we went. Tobey was a stinky old beagle who immediately leaned up against my shins and we were hooked. He'd join our family about a month later.
As an older but not yet elderly dog, Tobey was a great companion with enough energy to be fun but not so much to be overwhelming for a first-time dog owner. My wife grew up with terriers but I never had a pet, so caring for one was a new experience. Being able to skip the puppy phase but still teach Tobey new tricks, like play dead, was fun. (yes, you can teach an older dog new tricks)
We didn't really know how old Tobey was, just a range, because his paperwork gave conflicting information. It didn't matter to us though.
A recent study from a few years ago by the American Veterinarian Medical Association revealed that 78% of respondents would consider going into debt for their pet, especially if it were a medical emergency. 50% would use a credit card to pay for the crisis and 22% would be willing to spend more than $5,000 for an emergency.
Tobey is no longer with us and I can attest to the fact that we were in the majority. As he aged and there were mounting medical issues, we paid for them. We didn't even discuss it. Fortunately, we were in a strong financial position and had the means to do so without going into debt. It's one of the benefits of having dual income and no kids (at the time!).
But there was one decision we made that lessened the burden – we got pet insurance. We got it at a time when he was still able to get it and it excluded some “pre-existing conditions,” such as his frequent ear infections. But it covered a couple larger visits that required significant test and treatments. It made those decisions easier.
The co-payments are large and you still pay a high percentage in co-insurance (I believe ours was 20%), but it does lessen the impact of those hard decisions.
It's terrible to have to decide between $5,000 and the life of your pet. By getting pet insurance, you pay premiums but you lessen the impact of those big bills. You no longer have to pick between the two – with pet insurance, you are buying peace of mind.
The peace of mind that you won't have to make that choice of whether what you love more – your pet or a big pile of money. For many, like myself, the premiums were worth it.
There are many products and services like this. You buy them not because they're optimal but because they improve the quality of your life. If you understand your nature, you make choices that move you in a positive direction without fighting your nature.
Leasing a car is generally regarded as not the best financial move… but if you love having a new car every few years, leasing a car makes sense. It's better than buying a car, driving it for three years, and then selling it. There's the financial cost as well as the time spent selling it. Leasing is not financially optimal but it's better than buying and selling a car every three years.
Taking a gap year or a sabbatical in which you are not earning an income is, by definition, not financially optimal. But the benefits can be immeasurable. If you delay college by a year to spend it backpacking in Europe (a classic trope, I know), you delay income (and the investment gains any savings would've accrued) but can have a fantastic life experience that shapes the rest of your life. I have never met someone who took a gap year and regretted it.
In the end, Tobey was put to sleep after a long battle that ended in liver failure. We were never put to the decision as there was nothing we could do. I have no regrets about paying for pet insurance.
Not all the treasures in life are measured in dollars and cents.
Sometimes you're paying so you don't have to make an ugly decision.
What do you think? How has this played out in your life?
Always informative and valuable information, thank you. I have 3 pets, I have no pet insurance, 2 of them are older and fortunately in good health however I feel when serious health issues begin to arise perhaps it’s time… I cannot bear the thought of putting them through the stress of medical treatments just to prolong their time with me, maybe it’s time for them to rest. I know easier said than done since I have not been subjected to this situation.
I agree with your approach too, anything we did was going to improve quality of life as well as length… I don’t think we should prolong life if it doesn’t include improvement too.
It’s always harder in the moment of course…
Hello Jim, I whole heartedly agree in the decision to purchase pet insurance for the reasons stated. Having a limited income, I chose to make it a priority financial decision, in the commitment to caring for my two German Shepherd Dogs. Often minimizing my needs to being able to purchase the policies. I was with a major insurance company for approximately 15 years, having had positive experiences. The pet insurance enity was then transfer to another company. I researched and compared other options, picking the best option. The disheartening thing is, even with out a claim, the premium has increased… Read more »
Pet insurance companies are 100% capitalizing on the emotional component of pet ownership. But that’s to be expected, they are a business after all and you are allowed to shop around, so they will price their policies along with the market. If they charge too little and the customer base makes too many claims, they go out of business (bad for everyone). If they charge too much, you switch insurers and they lose out. As long as they don’t collude to keep prices high, it’s OK. In the end, I realize we’re paying money for peace of mind and it’s… Read more »
I totally agree especially people like me who are 1st generation immigrants and do not have much support system. I use money to buy my peace of mind and people look at me and think I am a wise person. I just look at whatever can improve my quality of life.
This is a good way to think about it. When you don’t have a big support system, you have to pay for one with insurance if you want to avoid calamities.
Nice article, thanks. I’ve been subscribed to your Wallethacks emails for a year or so. Love all the good info and way that you explain things simply.