[Product Decoded] Shall I buy pet insurance?

(Author Rachel Ng Man Wai (Convoy Consultant) English Translation by 10Life)
Pets are not just companions, they are family. Any pet owner who has had a sick pet knows that providing great care often leads to large medical bills. Some 10Life users asked – is pet insurance available in Hong Kong, and what is being covered? We asked Rachel from Convoy for advice – what are some of the pet insurance products available in Hong Kong? We have translated her response below:
 
Pet insurance primarily covers clinic consultations, hospitalisation expenses, and third-party liabilities.
 
In Hong Kong, there are three main pet insurance products (primarily targeted to cats and dogs):
 
 

1. Blue Cross Pet Care
2. FWD Pet Insurance
3. Royal and Sun Alliance (Manulife-brokered) ManuPet

The coverage and terms for the Blue Cross and FWD plans are similar. Both products have fixed annual premiums, and the costs are comparable. Between these two products, FWD’s total coverage amount is higher than Blue Cross ¹.
  
Manulife’s ManuPet has a variable annual premium, dependent on the pet’s breed and age. Although premiums are higher for ManuPet than the other two products (by HKD100 - 3,000 annually) ^{2, 3} , the maximum issue age is higher (9-yr for dogs, 12-yr for cats) and can be renewed beyond.   
 
ManuPet also has higher coverage limits and covers more areas.  The additional areas covered include: overseas veterinary treatment, lost pet stipend, and pet-sitting for special situations. Co-payment is required for most of these reimbursement items.
 
Before purchasing pet insurance be aware that, in addition to age, there are many other limitations. Any pre-existing conditions, vaccinations, pregnancy and dental treatments are not covered. Special breeds may require higher premiums, and/or have special exclusions. Premium costs can also increase based on the pet’s claims history and health status.
 
The average clinic consultation with drugs is roughly HKD1,000, while operations can cost up to HKD10,000. Some plans provide coverage for older pets, but many existing diseases may be excluded when the policy is renewed. Consequently, pet owners may still need to set aside some funds to cover unforeseen medical expenses.
 
Instead of buying pet insurance with limitations, the alternative is to set aside a small fund to cover medical expenses. Putting a small amount every month into a flexible savings insurance plan, or investment-fund plan, may be a more effective alternative. These alternatives may provide better returns, with fewer limitations – while still providing funds to cover unexpected expenses.
 
Whether pet owners buy pet insurance, or build a pet fund, is a personal choice. Our pets may not be with us forever, but we are their life-time partners. To ensure they live a healthy life, shouldn’t we plan for them?




Footnotes:
1: Applicable only for「Blue Cross Pet Care"  Plan 1
2: Not included in 「Sun Alliance (Manulife-brokered) ManuPet Plan 3
3: https://sites.google.com/site/hkpetinsur/to-dos

 Note: This article represents the opinion of the author and does not reflect the view of 10Life.