The truth about coverage: Is pet insurance worth paying for?
SINGAPORE: When the Lim family's pet beagle, Pepper, was four, they decided to insure her as she had liver issues.
'We knew it would be challenging or expensive if we got her insured after her condition worsened, so we had to be quick about it,' said administrative executive Felicia Lim, 57.
'There were limited policies provided by the insurance company, so I just went with what the agent recommended, which was the basic plan.'
Today, at eight years old, Pepper makes frequent and costly visits to the vet, undergoing regular blood tests and taking long-term medication.
When Mrs Lim bought insurance for Pepper, there was only one company – Liberty Insurance – that offered to insure pet dogs. On the advice of her insurance agent, she chose the most basic plan, which provides partial coverage of medical expenses such as surgical and non-surgical treatments, for an annual premium of almost $400.
'We were not able to predict if her condition will worsen as she ages, so having her insured may help alleviate some financial pressure with future medical care,' Mrs Lim said, adding that the family is worried the insurance coverage might not be enough.
Under the Liberty PetCare plan, the claim limit for veterinary expenses is $700 for non-surgical treatment and $2,500 for surgical treatment, according to the insurer's website.
With more people treating their pets like family members, animal medical treatment expenses can soar, just like healthcare for humans. Expensive diagnostic scans, surgery and cancer treatments are routinely offered and accepted, escalating costs.
In one case, a couple emptied their savings and sold their Housing Board flat in 2023 to clear the credit card loans they took out for their dog's medical bills, but the French bulldog did not survive.
To mitigate the burden of unexpected veterinary expenses, pet owners are turning to insurance.
Today, there are six insurers – including Income and AIA – offering coverage for dogs and cats.
Most help to cover fees for veterinary services such as consultations, medication, surgery and hospitalisation. One or two policies offer only lump-sum critical illness coverage, treatment after accidents, and cremation or burial expenses if the animal dies because of an accident.
A few plans cover only accidental injury and third-party liability, which applies when the pet causes injury to someone or damage to someone else's property.
Silversky Protect, underwritten by MSIG, was the latest to join the furry fray, in December 2024.
Like the other pet insurance plans, Silversky Protect offers pet owners essential coverage that typically includes hospitalisation, surgery, vet visits and prescription medication for medical conditions arising from accidents and illnesses. It also provides coverage for post-surgery treatment and third-party liability, according to the MSIG website.
For instance, policyholders can choose their preferred veterinary clinic for treatment, and coverage for hospitalisation and surgery goes up to $13,000. No clinical examination is required to qualify for coverage, and a no-claim discount of up to 15 per cent is available, based on the website.
One of the highest surgical payouts is from Tiq by Etiqa, which offers up to $15,000 for surgical expenses under its premier-tier plan. Although other insurers may offer optional coverage such as for chemotherapy or pet boarding, their base surgical coverage might not be as high as Tiq's.
When buying pet insurance, there is no one-size-fits-all policy, said Assistant Professor Wei Pengyu from the Division of Banking and Finance at Nanyang Technological University's Nanyang Business School.
'Each insurer offers a different mix of coverage and premiums. Some offer better protection, such as lifetime coverage, low deductibles and high annual limits, but may fall short on affordability,' he said.
'A good policy should strike a balance between coverage and affordability, and have clear terms and a smooth claims process. What's 'better' depends on the pet's care needs and the owner's budget and expectations.'
Pet owners should consider what they want from a policy, and how much they can afford to pay for the coverage.
For instance, most policies in Singapore cover pets up to nine years old, but some continue coverage beyond this age – sometimes with revised terms or additional premiums.
Lifelong coverage may seem attractive, 'especially as healthcare costs typically spike in a pet's later years when chronic conditions emerge', noted Prof Wei.
But plans with lifetime renewal are more expensive and may impose increasing deductibles or co-payments as the pet ages. They may also impose more exclusions and lower claim limits as the pet gets older, he said.
The real value of a pet insurance plan lies in its coverage during a pet's younger and middle years, said Dr Lee Yen Teik, a senior lecturer in the Department of Finance at the NUS Business School.
This is primarily because premiums tend to be lower when a pet is in that age range, and pre-existing conditions are less likely to be excluded. As pets age, their risk of developing health issues increases, leading to higher insurance costs and potentially limited coverage options, much like what is seen in human health insurance.
Pet owners should also look at what a policy excludes.
For instance, congenital conditions, which may surface only after the pet has been adopted, can incur large, unexpected bills. Some policies cover congenital conditions, while others do not.
'However, inclusion of congenital cover usually comes at a higher premium or with required vet assessments. While it is a plus, it's not necessarily the right choice for everyone. It is the trade-off between coverage and affordability,' Prof Wei said.
Dr Lee said the catch here is that the policies 'may require a 12-month waiting period or a vet check-up before coverage for conditions like cherry eye or hip dysplasia actually starts'.
The waiting period ensures that a condition does not already exist at the time of enrolment, which will help insurers mitigate the risk of covering pre-existing illnesses.
Cherry eye is a condition in which a dog's tear gland in the third eyelid slips out of place, appearing as a red, swollen lump in the corner of the eye. Hip dysplasia, which is more common in larger breeds such as labradors, occurs when the hip joint is loose or malformed, leading to pain, inflammation and arthritis over time.
'If your pet develops the issue during that wait, it likely would not be covered. So, if you have a breed prone to such issues, enrolling them very young is absolutely key to getting that protection,' Dr Lee said.
Prof Wei advised pet owners to enrol early, as many plans stop accepting new applicants once pets reach nine years old. He also urged owners to read the terms carefully to ensure that the policy coverage matches their pet's potential vet care needs. If the budget allows, they should choose lifetime and congenital cover, which provides more robust protection.
Dr Lee advised pet owners not to be swayed by high payouts alone.
'A $15,000 overall limit means little if the specific conditions your pet's breed is prone to, such as hip dysplasia in labradors, are excluded, have tiny sub-limits or long waiting periods,' he said. 'The best policy is one that actually covers your pet's most likely expensive health risks, not just the one with the biggest headline figure.'
He added: 'Don't just grab the cheapest or most advertised plan. Think of choosing pet insurance like careful matchmaking for your pet's specific needs.'
Sometimes, a policy with a lower premium that covers only critical illnesses or accidents may be the best option for a pet owner.
'The hard truth is that major vet bills in Singapore for things like cancer treatment or complex surgery can easily hit thousands, or much more. Unlike your own health, there's no MediSave or government subsidy for your pet,' Dr Lee said.
'A modest annual premium can be the difference between getting the best care and facing a devastating financial decision. It's for the big, unexpected disasters, not the routine check-up.' - The Straits Times/ANN
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
4.8 million Sara recipients use MyKad to buy essential items
GEORGE TOWN: A total of 4.8 million out of 5.4 million recipients of the Sumbangan Asas Rahmah (Sara) aid have used their MyKad to purchase basic necessities at registered shops nationwide as of this month. Deputy Finance Minister Lim Hui Ying said Perlis recorded the highest number of users at 94%, followed by 93% in Sabah and Kedah, while Penang recorded 88%. She said the figures reflect the growing effectiveness of the initiative due to various awareness and promotional efforts at both federal and state levels. The government has raised the amount of funds for both Sara and Rahmah Cash Aid (STR) schemes to RM13bil this year, the highest for cash aid programmes in Malaysia's history, Bernama reported Lim as saying. 'The ministry will continue to strengthen awareness campaigns to ensure more people benefit from this government aid, which is aimed at easing their financial burden. 'We have also significantly expanded the number of recipients from 700,000 to 5.4 million since April,' she told reporters during a Sara outreach programme at a hypermarket here yesterday. At the event, Lim met with 100 Sara recipients in Penang as part of the ministry's effort to engage directly with urban communities. She said to date, 3,700 retail premises have registered under the programme nationwide, enabling recipients to shop closer to home. In Penang alone, 190 outlets are part of the programme. Since May 1, the programme was enhanced by expanding the list of eligible items to 14 categories, including household and personal hygiene products, medicines and school supplies like uniforms and shoes. The maximum amount of aid for 2025 was raised to RM2,100 from RM1,200, a 75% increase, Lim added.
The Sun
2 hours ago
- The Sun
Protesters slam war profiteering, Israel at French air fair
BOBIGNY: Thousands marched on Saturday outside a French trade fair, calling for an end to war profiteering and Israel's offensive in Gaza in the latest demonstration to hit the event. The long-planned protest at the Paris Air Show outside the French capital also comes as Israel's war with Iran drags on into a ninth day, with Tehran threatening to hit back in force at Israel's offensive against its arch-rival. The presence of Israeli defence firms at the show has already become a bone of contention, with the French government on Monday sealing off the booths of five Israeli firms on the grounds that they were displaying offensive weapons that could be used in Gaza. 'Their wars, their profits, our deaths, stop the genocide in Palestine,' read the banner at the head of the march, which organisers claimed drew more than 4,000 protesters. 'As we speak, people are dying and our governments are not doing anything to stop it,' Nora, 29, told AFP at the protest. Draped in a Palestinian flag, the project leader in the pharmaceutical industry said that she felt 'rage' at the footage coming out of Gaza, including that of 'mothers kissing their dead children' in the besieged Palestinian territory. Police have arrested seven people aiming to disrupt the trade fair, the Paris public prosecutor office said, with officers discovering a helium canister and nearly 200 balloons during the searches. Six of the arrests were made on Friday and the other on Saturday, the prosecutor's office added. Drawing some 100,000 visitors a day, the Paris Air Show at the Le Bourget airfield, nine kilometres (five miles) to the north of the capital, is usually dominated by displays of the aerospace industry's latest cutting-edge planes. But Monday's shuttering of the stands of Israel Aerospace Industries (IAI), Rafael, UVision and Elbit, as well as Aeronautics, which make drones and guided bombs and missiles, sparked a row with Israel. Israel's President Isaac Herzog branded Paris's closure of the Israeli firms' booths 'outrageous', comparing it to 'creating an Israeli ghetto'. It came days after Israel, claiming Iran was on the verge of obtaining a nuclear bomb, launched a surprise barrage on June 13 which killed top Iranian commanders and nuclear scientists. Tehran immediately hit back with a flurry of missiles, with the two countries trading wave after wave of devastating strikes since.
New Straits Times
13 hours ago
- New Straits Times
French scientists find new blood type in Guadeloupe woman
BASSE-TERRE: A French woman from the Caribbean island of Guadeloupe has been identified as the only known carrier of a new blood type, dubbed "Gwada negative," France's blood supply agency has announced. The announcement was made 15 years after researchers received a blood sample from a patient who was undergoing routine tests ahead of surgery, the French Blood Establishment (EFS) said on Friday. "The EFS has just discovered the 48th blood group system in the world!" the agency said in a statement on social network LinkedIn. "This discovery was officially recognised in early June in Milan by the International Society of Blood Transfusion (ISBT)." The scientific association had until now recognised 47 blood group systems. Thierry Peyrard, a medical biologist at the EFS involved in the discovery, told AFP that a "very unusual" antibody was first found in the patient in 2011. However, resources at the time did not allow for further research, he added. Scientists were finally able to unravel the mystery in 2019 thanks to "high-throughput DNA sequencing", which highlighted a genetic mutation, Peyrard said. The patient, who was 54 at the time and lived in Paris, was undergoing routine tests before surgery when the unknown antibody was detected, Peyrard said. This woman "is undoubtedly the only known case in the world," said the expert. "She is the only person in the world who is compatible with herself," he said. Peyrard said the woman inherited the blood type from her father and mother, who each had the mutated gene. The name "Gwada negative", which refers to the patient's origins and "sounds good in all languages", has been popular with the experts, said Peyrard. The ABO blood group system was first discovered in the early 1900s. Thanks to DNA sequencing the discovery of new blood groups has accelerated in recent years. Peyrard and colleagues are now hoping to find other people with the same blood group. "Discovering new blood groups means offering patients with rare blood types a better level of care," the EFS said.
