Pet Insurance: Yes or No?

[Mark S.]

First let me start off by saying that this thread is for those animal lovers that have pets and consider those pets to be a part of their family. I don't really need to hear from the cold-hearted, non-animal loving people that will say horrible things like, "Who cares? It's just a dog." Those people can stop reading now and move on.

I've been thinking a lot lately about whether or not to continue with the pet insurance I currently have for my dog. The policy I have covers accidents and illnesses: $100 annual deductible, 90% reimbursement, no cap, chronic conditions covered, routine items that aren't accident/illness not covered. Currently, the premium is about $43.72/month or almost $525/year. Premiums have, and likely will continue to, go up to keep up with costs of veterinary care.

Initially, I got the policy so that I would never have to make a decision between my wallet and my dog. Let's say I was faced with a decision of, "Well, it'll cost $2,500 for the procedure but he'll only have about 6 more months." It's not about whether or not I can afford the out of pocket cost (for many people, this is a major factor for them in purchasing the insurance; luckily, for me, this isn't an issue) but more about having to make that difficult decision. I would do anything for my dog, like most pet owners, but this isn't a situation I want to find myself in. For this reason, I convinced myself that pet insurance was the way to go. The more I think about it, however, it seems that I may be better off by self-insuring and instead of paying the monthly premiums, just put those funds into a liquid savings account. If he stays healthy, I didn't "waste" money on premiums. If he doesn't, the funds are set aside. If he gets sick/has accident right after I cancel the policy (if I do) and funds aren't built up yet, I can still afford it. It just kills me to think of paying $5,000 in premiums (probably more as costs go up) over a 10 year period for something I may never use (or not use as much as I paid in). On the flip side, I've been reading a lot of articles about veterinary technology advances and how many things can be done these days, but they come with a corresponding price tag.

I feel like if I'm going to cancel the policy, I should do so now while he's young and healthy instead of waiting until he's older and premiums are much higher (when I'll likely end up having a better chance of using the policy at that time). Ultimately, it's a personal choice. I'm just wondering how intelligent minds would approach the issue and what those animal lovers have done/are doing with your pets.

I look forward to hearing everyone's feedback. Thanks.