Last week, we shared an account by reader Howard about his dog’s illness and the results of his decision to get a VPI pet health insurance policy. While health insurance is just that–insurance, not an investment vehicle–Howard and other readers have crunched the numbers and found that the policies are a worse deal than just sticking the money in the bank.
Insurance is always a gamble. Pet health insurance, much like human health insurance, is a bet that your pet’s covered medical expenses over its lifetime will add up to more than the premiums you pay. Following that logic, Howard got a health insurance plan through VPI for his late pet Chihuahua, Tonka. He paid his bills faithfully and filed only a few small claims over the years, until his pet suffered from heart problems in his last six months. This is the very situation that pet owners buy insurance for. How did things work out financially?