Should you get pet insurance for a healthy dog?

Pet insurance isn't really about paying for the veterinary care your dog needs today.

It's about what might happen tomorrow.

Even a perfectly healthy dog can unexpectedly:

• Swallow a foreign object
• Tear an ACL/CCL
• Break a bone
• Develop an infection
• Need emergency surgery
• Develop allergies or another chronic condition
• Be diagnosed with cancer or another serious illness

Treatment for an unexpected accident or illness can potentially run into thousands of dollars.

Insurance can help reduce your financial exposure to eligible veterinary expenses if something happens in the future.

One of the biggest reasons to consider pet insurance while your dog is healthy is pre-existing conditions.

Pet insurance generally doesn't cover conditions that existed before coverage began.

And your dog doesn't necessarily need to have received a formal diagnosis for something to potentially be considered pre-existing. Previous signs or symptoms may also be relevant, depending on the policy.

That means waiting until a health problem appears before buying insurance can be too late to get that particular problem covered.

It's easy to underestimate the financial risk when your dog has never been seriously ill.

Imagine your healthy dog unexpectedly needs emergency surgery and has $7,000 in eligible veterinary expenses.

Using a simplified example with:

The calculation might look like:

That could leave you responsible for $1,150 of the eligible expenses rather than the full $7,000.

Actual reimbursements vary according to the policy, deductible structure, exclusions and coverage limits.

For some owners, it can be.

Instead of paying an insurance premium, you could put money into a dedicated veterinary emergency fund.

For example, saving $50 per month would give you:

The problem is timing.

If your dog needs $6,000 of emergency treatment six months after you start saving, your emergency fund may not yet be large enough.

Insurance transfers much of that financial risk to an insurer from the point your eligible coverage becomes effective, subject to waiting periods and other policy terms.

Your dog's current health isn't the only factor determining the price of insurance.

Premiums can also depend on factors such as:

• Age
• Breed
• Location
• Coverage level
• Deductible
• Reimbursement percentage
• Annual limit

Younger dogs will often be less expensive to insure than older dogs.

However, premiums can increase as your dog gets older, and buying insurance early doesn't lock in today's price forever.

The additional advantage of enrolling while your dog is healthy is that there may be fewer existing health issues that could be excluded from coverage.

Possibly.

Insurance is designed to protect against events that haven't happened yet.

You wouldn't necessarily decide whether home insurance was worthwhile based solely on whether your house had previously caught fire.

Pet insurance works on a similar principle: you're paying to reduce your exposure to an uncertain but potentially expensive future event.

Your dog might remain healthy for years. Or an accident or illness could result in a large veterinary bill next month.

The value of insurance is the financial protection it can provide if that unexpected event occurs.

Getting insurance early doesn't mean you should choose the first policy you find.

Compare:

Accident and illness coverage

Look at which veterinary treatments and conditions are eligible.

Annual coverage limit

Consider how much protection you'd have during a very expensive year.

Reimbursement percentage

Plans may offer options such as 70%, 80% or 90%.

Deductible

A higher deductible can reduce the premium but increases the amount you may need to pay yourself.

Hereditary and congenital conditions

This can be particularly important for breeds predisposed to certain health problems.

Waiting periods

Understand when different parts of the coverage become effective.

Direct or expedited payment options

Consider how you'd pay a large vet bill while waiting for reimbursement.

Exclusions

Check what the policy doesn't cover, not just what it does.

Your dog may be healthy today but still have a higher likelihood of developing certain conditions because of their breed.

Depending on the breed, that could include orthopedic, cardiac, skin, eye or other hereditary conditions.

For example, some larger breeds are more susceptible to joint problems, while other breeds may have increased risks of respiratory or heart conditions.

If your dog belongs to a breed with known health risks, check how different policies cover hereditary and congenital conditions before choosing insurance.

You can still potentially buy pet insurance later in your dog's life, subject to the insurer's enrollment rules.

But there are two things to consider.

The price may be higher

Older dogs generally cost more to insure.

Your dog may have developed medical conditions

Conditions that arise before the new policy takes effect may be considered pre-existing and excluded from coverage.

Waiting can therefore change both the price of insurance and the coverage available to your dog.

Pet insurance and wellness coverage serve different purposes.

Accident-and-illness insurance is primarily designed to protect against unexpected veterinary expenses.

Wellness or preventive-care coverage can help with predictable costs such as vaccinations, routine exams and other preventive treatments, depending on the plan.

A healthy dog may need plenty of routine veterinary care, but that doesn't necessarily mean you need wellness coverage.

Consider accident-and-illness insurance and routine-care benefits separately based on what you're trying to protect against.

The fact that your dog is healthy isn't necessarily a reason to wait.

It can actually be one of the strongest reasons to consider pet insurance now.

Buying coverage before medical problems develop can mean fewer potential pre-existing-condition exclusions, while providing protection against eligible accidents and illnesses that could happen in the future.

The question to ask isn't “Does my healthy dog need expensive treatment today?” but “If my dog unexpectedly needed $5,000 or $10,000 of treatment tomorrow, how would I pay for it?”

If you'd rather transfer some of that financial risk to an insurer, pet insurance may be worth considering while your dog is healthy.

Pet insurance policies can vary considerably in price, coverage, deductibles, reimbursement rates and exclusions.

And when your dog is currently healthy, you have an opportunity to compare your options before a medical problem potentially limits future coverage.

Tomorrow’s diagnosis could become a pre-existing condition if you wait.

Pet insurance can help protect him while he’s healthy today.