PET INSURANCE
Junior, our 11-1/2 year old Chessie, recently had a complete physical work up at our Nantucket MSPCAAngell, including a physical examination, complete blood work, urinalysis and an ultrasound performed by a visiting cardiologist consultant from Boston's MSPCA-Angell. Yes, he's fine, thank you very much; in fact, he's in great shape for his breed and age. But, as you can imagine, the costs mounted proportionate to the paperwork going into his file.

One way to have taken the bite, pardon the expression, out of escalating veterinary expenses for a dog in his later years, compounded by the cost of state-of-the art medical procedures, would have been a pet insurance policy. Unfortunately, we don't have pet insurance, nor do most pet owners. Of the 163 million cats and dogs in this country, only 3% of dogs and 1% of cats are insured. Veterinary Pet Insurance, the oldest and largest company with about 85% of the pet insurance market, had 15 straight years of losses until finally breaking even in 1997. But since 2001, this market has seen a steady 26% annual growth.

There are reasons for this growth. First, the pet owner demographic has changed. The majority of pet owners, 61%, are childless singles or couples rather than the stereotypical American family. The pet is the surrogate baby, spoiled like an adored only child. Pet owner spending will balloon to $40 billion for pet care and feeding this year alone; 25% of that will be devoted to veterinary care as more of us opt for expensive medical treatments to monitor the health and well being of our beloved animals and prolong their quality of life.

The second reason is twofold. Pets are living longer, with potential for more serious health issues related to age, and veterinary treatments are becoming increasingly sophisticated. Procedures such as radiation therapy and organ transplants, formerly available only to humans, have been adapted for use within the pet industry. Diagnostic tools like MRIs and ultrasound now can detect problems that once would have been unnoticed and untreated.

Finally, companies are recognizing the importance of pets in today's world and in just a few years, the number of firms offering pet insurance as an employee benefit has more than doubled. Companies like Home Depot, Wells Fargo, Viacom and Comcast include pet insurance in their list of employee perks.

Pet health insurance works much like health insurance for people. Feefor service plans are the most common; typically you pay the veterinarian, then submit your claim and receipts to the insurance company. There are different coverage options, co-pays, deductibles and payout limits, with lower monthly premiums usually offset by higher copay and deductible amounts.

Premiums vary according to pet age, condition, area vet costs and coverage levels. Premiums could accumulate from $2,000 to $7,000 over the life of an average pet, and financial experts might argue that you are better off without the insurance if you would set aside an equivalent amount in a savings account. Good advice, if you do it.

Obviously, consider the cost, but don't pick a policy based on price alone. Estimate how much you spend per year on veterinary and hospital fees and how much you feel you can afford. Some believe insurance coverage is best reserved for catastrophic situations, but not necessary for routine costs. For others who would do anything for their pet, including spending thousands of dollars on medical treatments, a comprehensive pet insurance plan might offer a reasonable alternative to debt.

Shopping for insurance can be tedious, because you have to look at a lot of fine print and policies and premiums can vary widely. Three commonly used companies are Veterinary Pet Insurance (800-872-7387), PetCare Pet Insurance (866-275-7387) and Pet's Best Insurance (888-899-0402). All have websites. A.M. Best (ambest.com), an independent organization, rates insurance companies for financial strength and their ability to pay. You want to see a rating of B+ or higher.

Before you buy, experts advise you to consider the following questions:

+ Can I choose my own

veterinarian? + What are policy conditions

and exclusions? + What are the waiting periods? + Is this company licensed

in my state? + Are pre-existing or congenital

(present at birth) conditions

covered? + How long does it take to process a

claim? + Are discounts available

for insuring multiple pets? I

Jan Jaeger is owner of Geronimo's, Ltd., Nantucket's pet supply and gift shop, and is a member of DWAA and CWA (Dog and Cat Writer's Associations of America). Her pets at home are Junior, a Chesapeake Bay Retriever and three cats. At the shop are the cats, Messrs. Fish and Chips, Flower bunny, Willie guinea pig and two budgies. Send e-mail to jan@geronimos.com.