January 29, 2010, Newsletter Issue #116: Get familiar with these five terms that you will find in all pet insurance plans

Tip of the Week

Being fluent in pet insurance terminology is important because that way there can be no confusion between what you think a terminology means and what it really means. Listed below are five commonly used terms that you might want to be familiar with.

1.Premium : This is the amount of money that you need to pay to buy a pet insurance policy. Most pet insurance companies give you the option of monthly payments and annual payments.
2.Exclusions: These are the list of conditions not covered under your pet insurance policy. You must read this list very carefully because once you have accepted the policy and if your pet has a condition that comes within the list of exclusions, then there's no chance that you can ever recover a claim from your pet insurance company for that condition.
3.Claim: This is the amount that you have spent on a specific condition for which you fill in your pet insurance company's claim form in order to get it reimbursed.
4.Excess: This is the part of every claim that you send in which you have to pay. Generally pet insurance companies pay somewhere between 75% and up to 90% of expenses that you incur. Some pet insurance companies even pay 100% of a claim. In such cases, the excess works out to zero.
5.Maximum benefit: This is the maximum amount that you are allowed to apply a claim for. The maximum benefit will vary for different conditions and different surgical procedures and examinations. These will be specified by your pet insurance company. Read the terms and conditions carefully before filling the form and sending it to your
pet insurance company.

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