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Articles Dog Health and Care Insuring Against Irrational Pet Insurance Decisions
Articles Dog Health and Care Insuring Against Irrational Pet Insurance Decisions | Insuring Against Irrational Pet Insurance Decisions |
| Written by Karsten Broderlynn | ||||||||
| Friday, 15 May 2009 | ||||||||
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If perception is reality then it occurs to me that the difference between a bad decision and a good one isn't so much the choice that's made but the resulting outcome of having made the choice. Think about it for a second. If you jump out of the way of a speeding car, you've made a smart choice even in the eyes of an outside observer. If, however, you land in front of a car speeding in the opposite direction, you've made a bad choice.
If perception is reality then it occurs to me that the difference between a bad decision and a good one isn't so much the choice that's made but the resulting outcome of having made the choice. Think about it for a second. If you jump out of the way of a speeding car, you've made a smart choice even in the eyes of an outside observer. If, however, you land in front of a car speeding in the opposite direction, you've made a bad choice. Your choice was the same either way. You jumped out of the way of a speeding car. But the results dictate the apparent intelligence of the decision you made. If that's the case, then we're all subject to fate when it comes to measuring the virtue of our choices. But there's another way of looking at things. My father once told me that the value of a choice wasn't simply apparent in the decision itself or in its outcome. Rather, one had to consider the thought that went into the choice in the first place. My evident confusion prompted him to expand on that. "If," he asked, "I offered you an investment opportunity that could convert $5,000.00 of your dollars into $50,000.00 in ten years, would you take it? Consider that you have about a 50% chance of making that $50k and better odds of making only $30K or $40K. Regardless, you can rest assured that you'll almost certainly get your full investment back if things don't work out but you'll still have to wait 10 years." I thought about the question and thought, absent any pressing needs or wants, I might take the opportunity if I had disposable cash handy. He then asked what I would do if he offered me obscenely slim odds to make $5 million dollars and all I'd have to invest is $5 for the purchase of a lottery ticket. I answered without hesitation that I'd hand over the $5 with hardly a thought. He then deflated my confidence a bit by explaining I'd just made the same bad decision thousands of lottery ticket purchasers make every day. The mistake I was making being the failure to consider the odds in assessing the value of the investment simply because I was so impressed by the potential return relative to the amount I'd have to pay to get in on the deal. In considering the purchase of health insurance for your pet, you face a similar decision but the lines aren't quite as clear. That, of course, means that making the smart choice can be far more confusing. It requires research and sensible thinking. Much as with the investing example, many of us struggle with the choice of insuring our pets because we tackle this dilemma with the same irrational approach we might apply to purchasing a lottery ticket. What if our pet never requires an expensive procedure? Will we be able to stomach having thrown away all that money over the years for nothing? Alternatively, we apply emotions to the choice. If we don't get health coverage for our pet, does that mean we don't love it? Are we wrong for assigning a dollar value to the health of our animal? Neither of these approaches is the right one. In the former, we're wasting effort simply because trying to predict the future is a wasted effort. You cannot predict the future health needs of your pet. It might never require an expensive medical procedure. Then again, perhaps it will need one. Even the healthiest of breeds can have accidents, eat something they shouldn't or be hit by a car. The point is you can't know. In relying on emotion in the decision making process, the second approach is no better. A financial decision should never be grounded purely in emotion. Your financial circumstances might simply dictate that you can't afford the monthly fee for health insurance. That doesn't mean you love your pet any less, it's just a fact of economics. Your decision to purchase veterinary insurance should be grounded in sound, rational thought. Take the facts into account and go from there. Consider what you'd face in a health emergency if you didn't have pet insurance. Would your savings carry you through? If you are well off financially and are good at leaving your savings untouched except in emergencies, pet insurance may be completely unnecessary. Also consider your pet's age and general health. If it is young and healthy, non-problematic breed then perhaps the choice to purchase pet insurance can be delayed until later in your pet's life. Just remember the warning that emergencies can and do happen. Take the time to do the research and math. It may make sound financial sense to pay a monthly fee just in case. For many the peace of mind of knowing their pet is covered in the event of an emergency makes the monthly expense of insuring a pet is preferable to taking an unexpected hit to their savings. Job stability, how much you have in savings and how comfortable you are unpredictability should be the factors that influence your decision. At the end of the day you should take the time to honestly analyze the relevant facts with no emotional bias. Do your research, consider your financial position and make the choice based on what makes sense rather than your fears and emotions. Leave it to the guys in Vegas to have fun riding emotional roller coasters while you content yourself in a rational decision honestly made. About the Author: With over 20 years of veterinary and pet care experience, Karsten hopes to help you make sound decisions about veterinary pet insurance. He is a consultant and guest writer for several sites covering general pet health issues, exotic pet insurance and other pet topics. Views: 203
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