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  • 2 Post By AsianXpat0
  • 3 Post By Natfixit
  • 1 Post By jimbo_jones

Pet Insurance - Not Worth It

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  1. #1

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    Mathematically the only way an insurer could remain solvent is to pay less in claims, commissions, and operating expenses (not to mention profits) than they take in from premiums. Which is why it never makes sense to insure expenses that you can afford. Pets are simply another psychological weakpoint for otherwise rational people to part with their money. Glad you found common sense experience matches up with pure logic before too late.

    hike and jimbo_jones like this.

  2. #2

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    Quote Originally Posted by AsianXpat0:
    Mathematically the only way an insurer could remain solvent is to pay less in claims, commissions, and operating expenses (not to mention profits) than they take in from premiums. Which is why it never makes sense to insure expenses that you can afford. Pets are simply another psychological weakpoint for otherwise rational people to part with their money. Glad you found common sense experience matches up with pure logic before too late.
    Insurance is a ripoff period. Just ask the folks in New Orleans after Katrina

  3. #3

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    Aug 2010
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    We basically wasted money with Manulife and their shenanigans. In the end, we put aside what we paid each month and it paid off for our once healthy if FIV positive but now deceased cat. AsianXpat puts it correctly when he/she says that pets are another psychological weak point for others rational people to part with their money. Weigh up the costs and budget to put aside a certain amount each month on top of your pet's food, vaccinations , bedding, etc...

    AsianXpat0, shri and jimbo_jones like this.

  4. #4

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    Quote Originally Posted by AsianXpat0:
    Mathematically the only way an insurer could remain solvent is to pay less in claims, commissions, and operating expenses (not to mention profits) than they take in from premiums. Which is why it never makes sense to insure expenses that you can afford. Pets are simply another psychological weakpoint for otherwise rational people to part with their money. Glad you found common sense experience matches up with pure logic before too late.
    Some jurisdictions force a certain payout ratio on some insurance products.
    Also, insurance companies were meant to pool the assets and invest it, and profit on the return. Sort of worked for mutual.
    For profit, it becomes something else, take as much as you can and return as little as the market can bear. Upfront and trailing commissions for brokers, etc leave little money for the insurer to use to pool to invest and payout...

    - ymmv
    hike likes this.

  5. #5

    Join Date
    Aug 2008
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    My dog needed 2 leg surgeries in 5 months (as a puppy under 18 months for both surgeries), cruciate ligament rupture. It cost an eye watering amount for a puppy I had for 2 months before the first surgery (like over 100K all in). I looked into pet insurance but it just doesn't make sense in HK.

    I decided to slowly increase my emergency fund over time by the amount I would pay for the pet insurance monthly instead.


  6. #6

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    It cost an eye watering amount for a puppy I had for 2 months before the first surgery (like over 100K all in). I looked into pet insurance but it just doesn't make sense in HK.
    You might be better off buying some high growth stock to fund future expenses over 3-5 years down the road.

  7. #7

    Join Date
    Aug 2006
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    11,884
    Quote Originally Posted by Cornmeal:
    Insurance is a ripoff period. Just ask the folks in New Orleans after Katrina
    So you don't have medical insurance?

  8. #8

    Join Date
    Dec 2010
    Posts
    12

    Hi hike,

    I'm looking at the Love Pet Blue Cross policy conditions, and I do see the fine print that says the company has the right to cancel the policy with 7 days' notice - but this is at renewal, the policy can't be canceled mid-year.

    Anecdotally, I've sold an older, broker version of the Blue Cross plan (Pet Care, which has similar T&C), but my clients have claimed on them and gotten money back. There has been some loading (surcharge) assessed at renewal due to claims, but the policies have been renewed.

    If anything, you should think of the pet insurance like car insurance, you can get paid back (for accidents/sickness)..but only to limited extent.

    If you totaled more than 1 car, pretty sure you would be an uninsurable driver.
    But before that, it's still a sound purchase. 1 big claim pays for multiple years of insurance premiums.
    If you believe in insurance, that's the math..really, for any type of policy.

    People put too much emotion into insurance, I wouldn't take the advice of a FB group, if any one of the members feel they've been wronged, it becomes an echo chamber of bad blood/criticism. You should seek a rational professional who reads contracts and provides support.