Why Every Dog Owner Should Have an Emergency Fund
By Patty Moore, a newer blogger @WorkMomLife and http://workingmotherlife.com
Dogs are wonderful companions, and they're good for your health too. Many medical studies worldwide show that dog owners enjoy lower blood pressure, healthier weight, better cardiovascular fitness, less stress and depression, and higher self-esteem — all of which can add years to life. It's no surprise owners work hard to keep their canine family members healthy. Yet no matter how prepared you feel, you may not have planned for an unexpected vet visit. Like any of life's surprises, it pays to have a financial plan ready.
What a Pet Emergency Might Cost
Most owners know the usual costs of dog care, and many can cover routine health care — vet exams, worming, flea prevention, teeth cleaning and vaccinations — which may add up to several hundred dollars a year. They budget for it. But until it happens, few owners realize how much emergency pet care can cost, potentially thousands of dollars. A common emergency is gastrointestinal foreign body surgery, needed when a dog swallows a diaper or corn cob, which can run upwards of $3,500. Worse, if your dog eats a toxin like poisonous mushrooms, treatment could cost nearly $7,000. Heatstroke, which happens often in some regions, can cost over $4,000 to treat. And chronic vomiting and diarrhea from pancreatitis could mean $3,000.
You get the idea. One unexpected injury or illness can upset your finances, forcing you to dip into savings or take on debt. You might be one of the lucky owners who never faces it — but most aren't so lucky. Alternatively, you could be financially prepared, so all you have to focus on is your dog getting better.
Building an Emergency Fund for Your Dog
A core personal finance rule is to plan for the unexpected. That's why financial planners advise setting up an emergency fund before doing anything else with your money. You put a few hundred dollars into savings until you have enough to cover a year of living expenses for you and your family. While you may see your dog as family, health care emergencies for pets usually aren't part of those living expenses. Keep your own emergency fund intact and start a separate one for your dog. It's far cheaper than paying off a high-interest credit card balance. If your monthly dog care budget is $100 (food, supplies, grooming, etc.), try doubling it and setting aside $100 in a separate savings account. Within a
couple of years you could have nearly $2,500, likely enough to cover many medical emergencies.
Or Consider Pet Insurance
More and more dog owners are turning to pet insurance to cover potential vet bills. Pet insurance is meant to cover treatment for most injuries and illnesses, including surgeries, hospitalization and emergency care. As with your own health insurance, policies have exclusions, so you need to know what's covered and what isn't. For example, many policies cover pre-existing conditions only if they've been fully cured.
Most standard policies also don't cover wellness or routine vet visits. You can buy policies that include them, but you'll pay a higher premium. Most owners choose basic illness and accident coverage to keep premiums low, then pay for wellness visits out of pocket. The average monthly premium paid by dog owners was $43 in 2016, with policies starting as low as $10. Some policies can run as high as $100 a month depending on where you live, the coverage type, and your dog's breed and age. A policy for a three-year-old mixed-breed dog might cost $27 a month, while the same policy for a purebred black Labrador might cost $49 a month.
Which Route Is Right for You — Emergency Fund or Pet Insurance?
There's no single right answer for dog owners. Much depends on your finances and the kind of dog you have. The main risk with an emergency fund is that your dog gets sick or hurt before you've saved enough. The main risk with pet insurance is that you pay more in premiums over the years than you ever claim. Many pet owners are fine never using their pet insurance, just as they're fine never using their auto insurance. For them, it's all about peace of mind — the main reason to carry any kind of insurance.
Visit Patty's blog: http://workingmotherlife.com