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Why you need pet insurance as a paw-tection for your furry friends

Image Credits: UnsplashImage Credits: Unsplash
  • Pet insurance can help protect emergency funds from unexpected veterinary expenses, allowing for better financial planning and predictable cash flow.
  • The decision to get pet insurance often stems from recognizing that potential vet bills could exceed personal savings or budgeted amounts for pet care.
  • While there's a chance of not using the insurance, many pet owners and financial experts view it as a valuable risk management tool, similar to other types of insurance.

During the month of August, Roshan Kanesan made the decision to get medical insurance for his one-year-old dog, Berkshire, with a capacity of RM3,500. According to Roshan, who spoke to MyPF, the adorable dog was given the moniker Berkshire Hathaway since he described himself as a "nerd."

The decision to insure a pet is becoming increasingly common among pet owners, reflecting a growing awareness of the potential financial burdens associated with pet healthcare. As veterinary medicine advances, treatments for pets are becoming more sophisticated and, consequently, more expensive. This trend has led many pet owners to consider insurance as a means of managing these potential costs and ensuring they can provide the best possible care for their furry companions.

Why did he ultimately choose to carry out the action? This was something that he ascribed to something that his girlfriend had stated earlier this year: "Yes, you are able to afford to cover RM3,500 on your own, but what if the vet bill ends up being more than that?"

In spite of the fact that it was a rhetorical question, it was successful in encouraging Roshan to make his choice. However, he continued to have his reservations, and he questioned whether or not he truly required pet insurance. What is the likelihood that he will require medical coverage?

Pet insurance providers often cite statistics to highlight the likelihood of pet owners facing significant veterinary expenses. For instance, some reports suggest that one in three pets may require unexpected veterinary care each year. While these figures can vary depending on factors such as the pet's breed, age, and lifestyle, they underscore the unpredictable nature of pet health and the potential financial risks involved.

And even if Berkshire happens to require medical attention in the future, I will be able to cover the cost with my emergency money, right?

In response to the second question, the answer would be yes; however, Roshan eventually came to the realization that obtaining pet insurance would assist him in maintaining the integrity of his emergency money. He could now include the prospective costs of his pet in his budget as part of his normal expenses, most notably in the form of a premium payment that was made on a monthly or annual basis.

As a result of his actions, he would be able to mitigate the possibility of an unexpectedly high-priced expense putting his valuable reserves at danger. Therefore, if you are able to predict an incident and make preparations for it in advance, then it is not something that you should use money from your emergency fund to cover, according to what he pointed out.

Even if every pet owner wishes that their animal companion would never have to visit the veterinarian, the fact of the matter is that it is sure to occur at some point in time. Puppies, much like children, are prone to engaging in foolish behavior at times, as Roshan put it.

Financial experts often emphasize the importance of distinguishing between emergency funds and planned expenses. Pet insurance falls into the latter category, allowing pet owners to budget for potential healthcare costs systematically. This approach not only protects emergency savings but also promotes responsible financial planning. By treating pet healthcare as an ongoing expense rather than an unexpected emergency, pet owners can better manage their overall financial health.

You can respond that everything is fine and dandy, but what if you don't wind up making use of the insurance for any reason? Aren't you literally wasting money by doing this?

Roshan's response is both yes and no to the question. "As long as it is within my cash flow, which means that I can still fulfill my other commitments and costs and continue to save, I find the ability to manage risk from situations like this to be incredibly beneficial."

The pet insurance offered by Berkshire, in addition to other types of policies that cover humans, helps to make my cash flow more predictable, which in turn enables me to engage in more effective financial planning.

Although he agreed that there was a possibility that the policy might not cover the total amount of the medical bill, he stated that it would nevertheless decrease the overall shock to the cash outflow system. Can you tell me about the remaining sum? When this happens, the emergency fund is there to help.

It's worth noting that the value of insurance extends beyond its direct financial benefits. Many pet owners report that having insurance provides peace of mind, allowing them to make healthcare decisions for their pets based on medical needs rather than financial constraints. This emotional benefit, while difficult to quantify, can be significant for pet owners who view their animals as family members.

Roshan stated that all that is required of me is to ensure that I am putting aside the appropriate sum on a monthly basis in order to pay for the annual premium.


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