Insuring Against Irrational Pet Insurance Decisions
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.
In either case you made the same decision in jumping out of the way of a speeding car. Its the outcome of that decision that dictates the apparent intelligence of the decision you made. Does that mean we're all subject to fate in determining the virtue of our decisions? Not necessarily. Perhaps we should have looked before we leapt. To confuse things further, 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.
He paused and then asked me what I would do if he offered me an investment opportunity that could convert $5,000.00 of my dollars into $50,000.00 in ten years. Would I take it? To get me to think further he proposed that I'd have about a 50% chance of making that $50k and better odds of making only $30K or $40K. Regardless, I could rest assured that I'd almost certainly get my full investment back if things didn't work out but I'd still have to wait 10 years. I considered the question and replied that I might take the opportunity if I had disposable cash handy and nothing pressing on which I felt it should be spent.
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.
The problem is that many of us approach the decision to buy pet health insurance with the same irrational thinking we might apply to purchasing a lottery ticket. We ask ourselves how we'll feel if our pet lives to a ripe old age, never needing an expensive procedure. How will we feel 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.
Consider your pet's age and potential breed-specific health concerns. If you have a puppy, don't live in a dangerous area with heavy traffic, plan to keep a close eye on your pet when it's outside and have a generally healthy breed, postponing the decision to get health insurance until it is older may be the rational approach. Just don't discount the potential for emergencies in your choice.
Does it make more financial sense to you to pay a monthly fee just in case? For many, the monthly expense of insuring a pet is preferable to the possibility of an unexpected hit to their savings. Job stability, the balance of your savings account and your own tolerance for risk should be the factors that influence your decision.
After reviewing all the facts absent attempts at prognostication and absent pointlessly kicking yourself emotionally, you'll be able to make a smart decision. That means the right choice at the time regardless the unanticipated outcome down the road. A rationally grounded decision will leave you content with the knowledge that you did what was right at the time. Save the random, emotionally-based attempts at predicting the future for your trip to Vegas. - 23211
In either case you made the same decision in jumping out of the way of a speeding car. Its the outcome of that decision that dictates the apparent intelligence of the decision you made. Does that mean we're all subject to fate in determining the virtue of our decisions? Not necessarily. Perhaps we should have looked before we leapt. To confuse things further, 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.
He paused and then asked me what I would do if he offered me an investment opportunity that could convert $5,000.00 of my dollars into $50,000.00 in ten years. Would I take it? To get me to think further he proposed that I'd have about a 50% chance of making that $50k and better odds of making only $30K or $40K. Regardless, I could rest assured that I'd almost certainly get my full investment back if things didn't work out but I'd still have to wait 10 years. I considered the question and replied that I might take the opportunity if I had disposable cash handy and nothing pressing on which I felt it should be spent.
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.
The problem is that many of us approach the decision to buy pet health insurance with the same irrational thinking we might apply to purchasing a lottery ticket. We ask ourselves how we'll feel if our pet lives to a ripe old age, never needing an expensive procedure. How will we feel 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.
Consider your pet's age and potential breed-specific health concerns. If you have a puppy, don't live in a dangerous area with heavy traffic, plan to keep a close eye on your pet when it's outside and have a generally healthy breed, postponing the decision to get health insurance until it is older may be the rational approach. Just don't discount the potential for emergencies in your choice.
Does it make more financial sense to you to pay a monthly fee just in case? For many, the monthly expense of insuring a pet is preferable to the possibility of an unexpected hit to their savings. Job stability, the balance of your savings account and your own tolerance for risk should be the factors that influence your decision.
After reviewing all the facts absent attempts at prognostication and absent pointlessly kicking yourself emotionally, you'll be able to make a smart decision. That means the right choice at the time regardless the unanticipated outcome down the road. A rationally grounded decision will leave you content with the knowledge that you did what was right at the time. Save the random, emotionally-based attempts at predicting the future for your trip to Vegas. - 23211
About the Author:
With over two decades of veterinary and pet care experience, Karsten hopes to help you make sound decisions about veterinary pet insurance. He is a consultant and frequent guest writer for several sites covering general pet health issues, exotic pet insurance and other pet topics.
posted by X - Men @ 1:48 AM
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