Is pet insurance worth it?

(NC) Pets are great. Not only do they provide companionship, but they can also improve our health and well-being. It’s well documented that they keep us active and can help improve mood, reduce stress and even lower our blood pressure.

No wonder people treat them like family. Should we invest in the same sort of insurance coverage for them as well? Is pet insurance worth it?

As risk assessment professionals who often advise on insurance, many actuaries have strong knowledge on the subject. Here’s what their analysis suggests.

Most Canadians have some form of insurance through public, group or individual health plans to help cover their own medical costs.

Pet insurance generally offers the same basic coverage for the cost of accidents or sudden illness. For some, this sort of coverage can be really valuable. If you have had a pet for any length of time, there’s a good chance you have received a large and unexpected vet bill at some point.

As a relatively new product, what pet insurance can cover is changing. In the same way you can get coverage for dental and vision care, pet insurance can now also cover things like vaccinations, flea treatments and dental cleanings.

So, how much does it cost?

Like for our own insurance, a number of factors come into play:

• The type of animal – only dogs and cats can be covered so far
• Your pet’s breed, age and gender
• Where you are located – because vet costs vary from place to place
• The amount of coverage you want
• The deductible required
• The percentage of the total cost paid out for claims

A Forbes Advisor Canada analysis found the average cost is about $76 per month, based on $5,000 annual coverage, a $100 deductible and 80 per cent reimbursement of costs.

Is pet insurance worth it? It can provide peace of mind but, like coverage for your family members, it will depend on your individual situation.

You can learn more about Canada’s actuaries and their assessments at cia-ica.ca.