Today’s post is by my awesome staff writer Jordann. Enjoy!
This is, a bit of a sticky conversation, but one that I think is worth having.
A few weeks ago, my cat, Mia, got sick. She’s four years old and has been remarkably healthy so far in her life, requiring almost no vet care other than spaying her at six months of age. So when she started puking, me being the responsible pet owner I am, I dutifully took her to the vet. You can read about the whole saga here.
Mia is back home, safe and healthy now, but the whole experience set me back around $600. No big deal, that’s what the emergency fund is for.
Now that the whole thing is over with, I’ve started thinking about the what ifs.
What if the worst had happened?
What if she’d really been sick?
What if it had been a lot more expensive?
How much would I be willing to spend on my pets in order to bring them back to health?
After all, they’re family members. Their health and well being is important to me. If one of my pets got really sick, and needed life saving but expensive treatment, how much would I be willing to spend on them? I’ve heard stories of pet owners spending upwards of $10,000 on treatments, but I also know pet owners who wouldn’t spend more than $500 to save a pet. Where do I fall on this scale? What’s my threshold?
I think, to really answer this question fully, there are a few things to take into consideration.
Just typing this out is making my insides squirm, I hate thinking about my pets being sick.
One of the things I would definitely have to take into consideration when deciding how much I’d be willing to spend in a veterinary emergency, would be the odds of survival. If the life saving procedure costs $6000 and only results in a 30% change of success, I’m not sure I would go for it. If the procedure would 100% cure my pet, on the other hand, I’d be much more willing to spend the money.
Right now I have a $2k emergency fund while paying off debt. If my pet got sick, anything beyond that, would have to come out of my various sources of untapped credit. That’s not an awesome prospect and would probably make me think harder about spending the money.
In contrast, if I was saving to buy a house, and had $40k in cash sitting in a savings account, I would probably be inclined to swipe a bit of that to pay for any emergency procedures.
Again this sounds terrible, but I would be more inclined to spend a lot of money bringing a young dog or cat back to health than one that is more than 10 years of age. At that point, I think poor health just becomes part of the equation. I’ve met pet owners that have spent thousands on chemo for older dogs with cancer, and I’m not sure how I feel about it.
There’s also pet insurance to take into consideration. While having pet insurance can definitely take the sting out of high vet bills, most plans only have a maximum threshold of coverage (say $1,500 per illness), so odds are you’ll probably still end up forking over some of your own cash if your pet is seriously ill. If you DO have a pet that you think will be prone to illness, I would definitely recommend pet insurance as an option.
Around a month ago I received an email from a reader who wanted to share his expertise in the life insurance industry. He’s heavily involved in the life insurance industry, which can a big hang up for many people either because they don’t want to think about it, or because they aren’t sure about the finances regarding it.
Hopefully you find this post helpful. This is not a sponsored post just so you all know Hope you all have an awesome weekend, Happy Friday!
Life insurance can be an intimidating subject to tackle for people who may are not familiar with how this particular, often sensitive, kind of insurance works. The basics are easy to understand; when a policy holder dies the beneficiaries are paid based on the particulars of the policy.
But there is a lot more that goes into policies and claims that can be confusing to many people. These are some of the most common concerns that people who are new to life insurance have.
Everyone has a unique situation, so there is no hard and fast rule when it comes to the right age to start looking for health insurance. Generally speaking, people usually start putting serious thought into the matter when they realize that their loved ones financial standing will be severely impacted by their own death.
Spouses, children, and elderly parents are the usual beneficiaries of life insurance policies, and this gives a good idea of who is investing. Of course, it never hurts to plan ahead and get a policy when you’re younger – and most likely healthier. This can lock you into a better policy for the rest of your life, even if your health degrades later on.
Many people are put off by life insurance medical exams because they either do not know what it covers, or they are afraid they will fail the exam outright. The medical exam isn’t much different from a normal physical. The life insurance companies are looking for any outlying factors that may make you more of a risk, so they look at your body mass index (BMI), blood pressure, and take urine and blood samples. When paired up with your questionnaire, family history, and demographic, the life insurance companies will have a pretty good idea of your current health status and any potential problems you might have down the line.
A history of tobacco use can be a big red flag for insurers, and when paired with a high BMI and poor family history it is much more likely to get paired with a low health class. It’s important to note that if your medical exam does cause you to get rejected by one company, which it doesn’t apply to all providers and you’re free to shop around.
If you’re taking the policy out on yourself, you have the freedom to choose anyone to be a beneficiary, – even a group of people. Usually this is a spouse or children, but you could even cut your business partner, best friend, grandchildren, mother-in-law, or favorite charity into the benefits if you wanted to.
If you want to share with multiple people, it’s important to determine exactly how much each person gets rather than saying something like “to be divided amongst my children.” This can lead to tension amongst the beneficiaries if they feel slighted or misrepresented and the last thing you want is your loved ones fighting amongst each other.
Of course! You can even take out multiple policies from the same provider. Many people like to take out a whole life policy and pair it with a term life policy, or add a term life policy with more coverage if they plan on traveling for extended periods.
Many people also have a group life insurance policy through their work which is often free for them, but it doesn’t offer much coverage or benefits; adding a term life insurance can drastically increase your coverage and keep the costs low since the group policy still isn’t costing you anything.
This question opens up a can of worms and in all honesty it cannot be answered fully because everyone’s situation is different. One provider might reject your application, while another approves it, and two can offer drastically different coverage options to the same person. Think of life insurance as a stock. Some providers are more “aggressive” and are willing to risk more coverage on people with a higher risk of dying, while other providers are more conservative and only approve their highest class policies for the healthiest.
With this disparity in the market, it is important to shop around. Just because you got a bad quote from one company doesn’t mean you’re out of luck everywhere.
Liran Hirschkorn is the founder of ChooseTerm.com and is an expert in the insurance industry where he works hand in hand with the best life insurance companies. Feel free to contact him with any more questions you might have.
We had a TON of fun in St. Thomas. I’m still recouping, so for today please enjoy these pictures. I didn’t really use my camera and used my iPhone for nearly all of my photos, so sorry about all of the Instagram pictures.
I will do a full recap eventually, and if you have any questions about St. Thomas or the U.S. Virgin Islands, please ask below or email me so that I know what to absolutely include in my St. Thomas, U.S. Virgin Islands’ recap post.
In the near future, I also plan on talking about blogging and getting freebies. Specifically blogging and getting travel freebies. Some of you know this already, but lately I’ve been able to score a lot of vacation freebies. These have included: free hotel stays, guided tours, snorkeling/kayaking excursions, dinners, drinks and so on. It is something that I just started with in the end of 2012, and I’m still learning more and more about it. Is there anything specific that you would like for me to include in the post? Look out for my post on Blogging for Free Travel soon!
Lastly, don’t forget to read my latest life update and extra income post
The lovely beach at the resort! Half of the beach is a little rocky, but the left hand side is perfect for getting in without it being rocky and hurting your feet. The water is crystal clear and BEAUTIFUL. Continue reading