When you bring a pet into your world, you commit to a host of expenses. So it's important to have money in savings at all times, because you never know when a pet care emergency might arise.
A good way to ease the burden of such events is to buy pet insurance. Pet insurance won't necessarily cover 100% of the cost of your pet's care when they fall ill or get injured and need emergency treatment. But a policy might pick up the bulk of that tab, thereby sparing your savings account from being depleted.
Meanwhile, now that late October has arrived, many companies have started to present their 2024 benefits packages. And if open enrollment has kicked off at your place of work, you may, in the coming weeks, need to make several key decisions, such as which health insurance plan to sign your family up for and whether to open a flexible spending account (FSA) or health savings account (HSA).
You may also be given the option to purchase a pet insurance policy through your employer. But is that a smart move?
Pet insurance is a pretty rare benefit
Most U.S. employers do not offer pet insurance as a workplace benefit. The Society for Human Resource Management reports that only 19% of companies do. That's actually an improvement from 14% in 2022, but it's a fairly small percentage nonetheless.
If your employer offers pet insurance, there may be one compelling reason to sign up -- savings on your premiums. Companies offering this benefit can often secure a lower premium rate for enrollees because of the larger number of people who are potentially buying coverage. So if your company's pet insurance plan is cost-effective, then it could pay to sign up.
What'll generally happen in that case is that your premium costs will be deducted from your paychecks automatically, the same way you might have money taken out for your 401(k). That gives you one less bill to actively have to pay.
But before you sign up for pet insurance through your employer, shop around with different pet insurance companies to see what rates they charge. It's not a guarantee that your employer will be able to offer the most competitive rate.
Also, your employer might only offer one or two pet insurance plans, but you might want (or need) a different level of coverage, depending on your pet's age and general health.
For example, some pet insurance policies offer wellness benefits that cover the cost of routine care. Granted, these plans tend to cost more, but if you're interested in coverage that's more comprehensive, you may or may not find it through your employer. So it's best to do your research.
A big decision to make
A pet insurance policy could spell the difference between being able to afford your pet's care with relative ease and struggling financially when issues arise. For example, say disaster strikes and your beloved companion needs emergency surgery. According to MetLife Pet Insurance, you could be looking at an average vet bill of anywhere from $1,800 to $5,000 for the surgery alone. Ouch!
On the other hand, if you had the appropriate pet insurance in place, you'd only have to pay the cost of your plan deductible. And based on data from MarketWatch, while pet insurance deductibles generally range from $0 to $1,000, the most common deductible chosen by owners is $250. That's quite the difference in out-of-pocket costs.
So while having pet insurance can no doubt be a boon to your personal financial health, before you rush to buy the pet insurance offered through your employer, compare your choices. It may turn out that your employer's plan is your best option, but do your research to make sure.
