Comparing pet insurance: How long is a lifetime?

When you compare pet insurance policies, you are likely to become very confused over a number of things.  One big source of confusion is what different insurers mean by the phrase “lifetime cover”.

For instance, some insurance companies claim to offer lifetime protection, and then stop paying for your claims once a financial limit is reached.  So if your pet developed diabetes, the first year’s treatment might cost £2,000.  You would then find that your policy was capped at £3,500 per condition – so if the next year’s treatment also cost £2,000, you would have to pay £500 yourself.  And after that, there would be no more payouts.

 If you have chosen one of these policies because of the offer of lifetime cover, you are likely to feel very disappointed – especially as many of them don’t make it clear even in the small print.

So when you are trying to compare pet insurance policies, as well as looking carefully at their definitions of lifetime cover, you need to compare the levels and limits of payout.  Policies fall into three basic groups:

1)      Policies that limit their payout per condition per year.  Under these policies, not only is the amount paid out for a particular condition capped, but it is only payable for the first twelve months of the condition.

2)      Policies that will continue paying for a condition but only up to a certain financial level.  Once the level for that condition is reached, nothing further can be paid, even if it is a permanent condition.

3)      Policies that offer a guaranteed amount per condition per year, for life, or for as long as your pet needs it.  Any additional condition your pet develops will be covered in the same way.

Only the third type can be truly called lifetime cover.  And in addition, lifetime cover means your pet won’t be excluded when he reaches a certain age.

If you are looking for lifetime cover, it can be really difficult to compare pet insurance policies accurately.  The companies know that offering lifetime cover is a good way to get your business.  So it suits them not to explain themselves clearly!