Let’s face it, pet insurance terminology can be pretty tricky. You might find yourself searching through hundreds of policy pages, only to find your answer buried beneath insurance jargon designed to confuse you. But we’re here to help you understand. Your pet insurance premium isn’t just another bill you pay every month. It’s about coverage for your furry friend, your loyal companion—the one you love like family.
How do claims payments work for pet health insurance?
Wondering if you’re covered or not? Insurance only works if you already have it before you need to file a claim. As long as you have a pet insurance policy in place, like Lemonade’s pet insurance, you’re covered. Within most states, you have 180 days to file a claim on their website or app. Lemonade will reimburse you for eligible costs based on the amount you selected for your co-insurance, annual deductible, and annual limit when you signed up for your pet insurance policy.
Simply put, you contribute your portion of the co-insurance payment for every claim. With an 80% co-insurance policy, for example, you pay 20% of the cost, in addition to your annual deductible until it’s exhausted for the year. Lemonade will cover the rest.
What’s co-insurance?
Co-insurance is the portion of your veterinary bill that Lemonade pays on eligible claims. It’s important to note that co-insurance is different from a co-pay. While co-insurance represents a percentage of liability, a co-pay is a fixed out-of-pocket fee for things like doctor’s appointments and prescriptions.
At Lemonade, they offer co-insurance values of 70%, 80%, and 90%. This means you’re deciding if you want to pay 30%, 20%, or 10% of the costs on eligible claims.
For example, let’s say your tabby cat Blossom needs to be hospitalized after accidentally eating a poisonous plant. The total bill comes to $2,000. With an 80% co-insurance plan, Lemonade will cover 80% of the hospitalization cost, which amounts to $1,600. You would owe the remaining 20%, which is $400.
What’s an annual deductible?
The annual deductible on your pet health insurance policy is a flat fee that spans the entire year. It’s not something you have to pay for every claim. The deductible can be exhausted in a single claim or spread out between multiple claims made within the same year.
Let’s say you chose a $250 annual deductible with an 80% co-insurance. Suppose you take your cat to the vet, and the bill is $100. Out of this total, $40 is for standard vet visit fees, which you pay out-of-pocket since those aren’t covered by your pet insurance. The eligible services fee of $60 will be applied toward your plan’s deductible.
The remaining $60 fee for eligible services needs to be paid in full by you since your deductible hasn’t been met yet. However, it will lower your deductible by $48 (i.e., $60 x 80%). Your remaining deductible for the next visit will be $202, and this process repeats until you meet your full deductible. After that, Lemonade will reimburse you for 80% of all eligible services until you reach your plan’s annual limit.
What’s an annual limit?
The annual limit on your pet health insurance policy is the maximum value that Lemonade will pay out each year for all your claims combined. When purchasing your policy, you can select an annual limit between $5,000 and $100,000, depending on your budget and your pet’s needs. After reaching this limit, any further veterinary costs within the year will be your responsibility.
How do these coverages affect my monthly payments?
The more coverage you receive from your insurance, the higher your monthly payments. Choosing a higher co-insurance percentage means Lemonade pays out a larger portion of your veterinary costs. Similarly, a bigger annual limit provides more coverage on their part, resulting in a higher premium from you.
On the other hand, a lower annual deductible means you pay less money before Lemonade’s payments kick in. So, lower deductibles lead to more coverage on their part and a higher premium from you.
When selecting the best plan for your pet, consider what your pet may need and what you’re prepared to pay. Adjust your coverages accordingly to strike a balance between coverage and premium.
FAQs
Q: How much does pet insurance cost?
A: The cost of pet insurance varies based on factors such as co-insurance, annual deductible, and annual limit. It’s important to weigh your pet’s needs and your budget when selecting a plan.
Q: How does the co-insurance percentage affect my coverage?
A: The co-insurance percentage determines the portion of your veterinary expenses that Lemonade pays on each claim. Higher percentages mean more coverage from Lemonade and a higher premium from you.
Q: Can I adjust my coverages to lower my premium?
A: Yes, you can adjust your coverages to lower your premium. However, keep in mind that less coverage may leave you financially vulnerable in case of an accident or illness.
Q: What is an annual limit, and how does it impact my coverage?
A: The annual limit is the maximum value Lemonade pays out each year for all your claims combined. Choosing a higher limit provides more coverage but also increases your premium.
Q: What should I consider when picking the right pet insurance plan?
A: Consider your pet’s needs, your budget, and the coverage options available. Strive for a balance between adequate coverage and a premium you can afford.
Conclusion
At the end of the day, we want our pets to receive the top-notch care they deserve without breaking the bank. Selecting the right pet insurance plan requires careful consideration of your pet’s needs, your budget, and the coverage options available. Choose wisely to ensure your furry friend stays secure, happy, and healthy.
