Pet Insurance: “Annual” Policies
Knowing that most conditions are recurrent, I never recommend this type of policy. Worryingly, around a third of pet insurance policies are in this “annual” policy category.
I think of these policies as a bit of a “time bomb” because they give a false sense of security - in the short term they seem ok but can give you a nasty shock later down the line when you least expect it. Basically your pet only gets limited cover, set up to a financial limit and only lasting 12 months for each condition. So in reality this means that cover for a specific problem your cat develops will not be continuous from year to year. The critical point is that cover with this type of policy means that you can only make claims for each individual medical condition for the first 12 months after you noticed the problem (not from when you first decide to claim!). This means that many owners only find out the hard way when they submit a claim and are told that the condition their cat has is now excluded - even if you have never submitted a claim form or sought treatment! An annual policy will leave you high and dry for any costs that are related to a condition that is on-going.
Don’t be fooled by the idea that your policy will cover your pet “for life”, as many companies will use these words to sell you their policy. As long as you pay your monthly premiums and stick to their terms and condition, then yes, they are right to a point… your pet may be covered “for its life” but the cover only applies to any new problems that may arise, each of these conditions then having their own 12 month time limit.
So if that itchy skin you mentioned to the vet last summer happens to flare up again this summer and every summer thereafter… you will not be covered! Make sure your policy is not restricted by a “ticking bomb” and check you policy does not have any time limits!
EXAMPLE:
Freddie, an 18 month old Persian forgets to look both ways when crossing the road and is struck by a car. He fractures his pelvis and one back leg in several places. With his owner’s “Annual” insurance policy, he will be covered for all the emergency treatment, referral to a specialist surgeon and the physio and medications he needs to make a complete recovery. Unfortunately despite the surgeon’s best efforts, Freddie will always now be prone to arthritis in that leg, making what seemed like a one-off problem, a potentially life-long problem….and so the clock starts ticking with an “annual policy”. Any problems Freddie has with arthritis outside of the 12 month period from the date of the accident will be paid directly from his owner’s pocket. In this economic climate, the reality is that sadly many owners let their cats suffer in silence, convincing themselves that they is ok because they know that the money is just not available.
NB: An "annual policy" is different from the insurer's time limit for handing in a claim form. All insurance companies stipulate that you must submit a claim form within a certain period of time after the illness started (eg 3-12 months). This is just so that you do not stock pile years of vet bills and then suddenly submit them all at once and try and claim for them all a long time later.
I think of these policies as a bit of a “time bomb” because they give a false sense of security - in the short term they seem ok but can give you a nasty shock later down the line when you least expect it. Basically your pet only gets limited cover, set up to a financial limit and only lasting 12 months for each condition. So in reality this means that cover for a specific problem your cat develops will not be continuous from year to year. The critical point is that cover with this type of policy means that you can only make claims for each individual medical condition for the first 12 months after you noticed the problem (not from when you first decide to claim!). This means that many owners only find out the hard way when they submit a claim and are told that the condition their cat has is now excluded - even if you have never submitted a claim form or sought treatment! An annual policy will leave you high and dry for any costs that are related to a condition that is on-going.
Don’t be fooled by the idea that your policy will cover your pet “for life”, as many companies will use these words to sell you their policy. As long as you pay your monthly premiums and stick to their terms and condition, then yes, they are right to a point… your pet may be covered “for its life” but the cover only applies to any new problems that may arise, each of these conditions then having their own 12 month time limit.
So if that itchy skin you mentioned to the vet last summer happens to flare up again this summer and every summer thereafter… you will not be covered! Make sure your policy is not restricted by a “ticking bomb” and check you policy does not have any time limits!
EXAMPLE:
Freddie, an 18 month old Persian forgets to look both ways when crossing the road and is struck by a car. He fractures his pelvis and one back leg in several places. With his owner’s “Annual” insurance policy, he will be covered for all the emergency treatment, referral to a specialist surgeon and the physio and medications he needs to make a complete recovery. Unfortunately despite the surgeon’s best efforts, Freddie will always now be prone to arthritis in that leg, making what seemed like a one-off problem, a potentially life-long problem….and so the clock starts ticking with an “annual policy”. Any problems Freddie has with arthritis outside of the 12 month period from the date of the accident will be paid directly from his owner’s pocket. In this economic climate, the reality is that sadly many owners let their cats suffer in silence, convincing themselves that they is ok because they know that the money is just not available.
NB: An "annual policy" is different from the insurer's time limit for handing in a claim form. All insurance companies stipulate that you must submit a claim form within a certain period of time after the illness started (eg 3-12 months). This is just so that you do not stock pile years of vet bills and then suddenly submit them all at once and try and claim for them all a long time later.
