Pet Insurance Q&A from a potential policyholder, part 1

Wednesday, December 16, 2009

Pet Insurance Q&A from a potential policyholder, part 1

In which I'm delighted at a potential customer's thoroughness...

Occasionally, someone researching pet insurance does his or her homework in a big way. I love it when that happens as it shows me that this pet parent really wants to get the right pet insurance policy.

Recently, we had someone send us a 20 question Q&A sheet to fill in to help him with his homework and he graciously allowed me to post it for you so you can skip straight to the answer. Ive split it into 3 parts to keep each post reasonably short - more over the remainder of the week.
_____________________

The questionaire is for a mixed breed (Border Collie features & traits), born Feb. 3, 2008, adopted w/microchip.

Is there one or more waiting periods? If so, what are they?
There is a 14 day waiting period for accidents and illnesses and a 6 month waiting period for dogs for Orthopedic Issues. The Orthopedic waiting period can be reduced down to 14 days if you have your pet examined by a vet with our Orthopedic Report Card anytime after you start your policy and then fax it back to us.
How is the deductible determined (per incident, per year, per life of pet, or ?)? Please clarify.
The deductible is annual, so just once per policy period aka year.
Are reimbursements based on actual vet fees or on a “usual, scheduled or customary” amounts?
We reimburse based on your actual vet bill.
Do premiums increase as the pet ages? At what rate? Is there a maximum age restriction?
Yes premiums can increase each year due to age and veterinary inflation. Typically the increase can be 8%-15% each year. Currently there is no maximum but we are looking into that for the future.
[further clarification]
I definitely understand the concern regarding the premium increase but honestly the age increase usually starts at age 5, so you wouldn’t have to worry about it until then. And typically vet inflation has been 5%-7% each year. We don't cancel your insurance once you get to a certain age but we do have to account for the increased likelihood of claims as the pet ages and therefore increase premiums.
Is there a cap on “continuing care (chronic, recurring conditions)?” Is it possible for a chronic condition to be declared “pre-existing?” If so, please explain.
Continuing Care is standard on all our policies. So if you have a condition, like diabetes, that is covered in 1 policy term and then requires more treatment in future policy terms, that is still covered. The only change is that instead of the full annual maximum to use, you’d have 25% of your annual max available for continuing conditions. If the chronic condition occurred prior to you getting the policy, then yes it’s considered preexisting and not covered… otherwise, you’re good to go for continuing care coverage.

You'll have to come back tomorrow and the next day for the remaining questions...

In the meantime, got any questions of your own for us?

PS. The answers were written up by Kate, one of our Customer Care Embracers in our Contact Center. Kate is also tweeting over at @embracepetins if you'd like to ask her a question.

Posted by Laura on Wednesday, December 16, 2009 at 07:29 AM in Ask Laura, Embrace Pet Insurance, Embrace products, glossary for pet insurance | Permalink

Comments

In which I'm delighted at a potential customer's thoroughness...

The questionaire is for a mixed breed (Border Collie features & traits), born Feb. 3, 2008, adopted w/microchip.

Is there one or more waiting periods? If so, what are they?
There is a 14 day waiting period for accidents and illnesses and a 6 month waiting period for dogs for Orthopedic Issues. The Orthopedic waiting period can be reduced down to 14 days if you have your pet examined by a vet with our Orthopedic Report Card anytime after you start your policy and then fax it back to us.
How is the deductible determined (per incident, per year, per life of pet, or ?)? Please clarify.
The deductible is annual, so just once per policy period aka year.
Are reimbursements based on actual vet fees or on a “usual, scheduled or customary” amounts?
We reimburse based on your actual vet bill.
Do premiums increase as the pet ages? At what rate? Is there a maximum age restriction?
Yes premiums can increase each year due to age and veterinary inflation. Typically the increase can be 8%-15% each year. Currently there is no maximum but we are looking into that for the future.
[further clarification]
I definitely understand the concern regarding the premium increase but honestly the age increase usually starts at age 5, so you wouldn’t have to worry about it until then. And typically vet inflation has been 5%-7% each year. We don't cancel your insurance once you get to a certain age but we do have to account for the increased likelihood of claims as the pet ages and therefore increase premiums.
Is there a cap on “continuing care (chronic, recurring conditions)?” Is it possible for a chronic condition to be declared “pre-existing?” If so, please explain.
Continuing Care is standard on all our policies. So if you have a condition, like diabetes, that is covered in 1 policy term and then requires more treatment in future policy terms, that is still covered. The only change is that instead of the full annual maximum to use, you’d have 25% of your annual max available for continuing conditions. If the chronic condition occurred prior to you getting the policy, then yes it’s considered preexisting and not covered… otherwise, you’re good to go for continuing care coverage.

You'll have to come back tomorrow and the next day for the remaining questions...

In the meantime, got any questions of your own for us?

PS. The answers were written up by Kate, one of our Customer Care Embracers in our Contact Center. Kate is also tweeting over at @embracepetins if you'd like to ask her a question.