Pet Insurance

An insurance premium is the amount of money an individual or business must pay for an insurance policy that covers healthcare, auto, home, or life insurance. Premiums for pet health insurance are often paid monthly. A variety of factors, including your location, and the age of the pet and the type of breed, will play in part in the cost of the premium. For example, it's usually more expensive to insure purebred animals than mixed breeds. Some breeds that are prone to hereditary issues will likely have higher premiums. 

Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies or perils. For pets, insurance helps offset the sometimes high cost of primary pet care, which includes annual exams and vaccines, blood work, and specialized areas such as neurology and oncology. Also, pets may have medical emergencies, just like their human owners.

A preexisting condition is a health condition that existed prior to applying for health or life insurance. Some insurers may choose to exclude certain preexisting conditions from coverage, including illness, injuries, behavioral issues, and congenital health problems. A pet with a preexisting condition is not necessarily barred from getting coverage, but you may want to comparison shop and see how this impacts the available coverage options. Pet insurance companies may distinguish between curable and incurable preexisting health conditions.

Your health insurance deductible is the amount you pay before your insurance plan's benefits begin for the year. As with human health insurance, there is usually a deductible for pet insurance. Unlike human health insurance, though, some pet health insurance will offer a discount in the deductible amount each year that you don’t file a claim.

Reimbursement is money paid to an employee or customer, or another party, as repayment for a business expense, insurance, taxes, or other costs. Most pet insurance operates through an arrangement in which you pay up front and are reimbursed after treatment.

Out-of-pocket expenses refer to costs that individuals pay out of their own cash reserves. For pet insurance, this would include any deductibles as well as any procedures and services not covered by your plan.