Pet Insurance Benefit Limits Explained
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
UPDATED: Feb 3, 2025
Pet Insurance U receives compensation from the third parties included on this site. This includes payment for clicks from our site to insurance providers’ sites and quote requests generated. Our rankings and reviews are not affected by payments from the insurance companies. The compensation we receive allows the site to be free and regularly updated. Our goal is to review every pet insurance provider, but not all companies are listed on the site.
And many of the companies we review do not pay us anything. We simply rate, compare and review their plan because we feel it will be valuable to you. Our reviews are guaranteed to be unbiased, professional and advertising compensation does not influence rankings.
We are a free online resource for anyone interested in learning more about pet insurance. Our goal is to be an objective, third-party resource for everything pet insurance related. We update our site regularly, and all content is reviewed by pet insurance experts.
UPDATED: Feb 3, 2025
Pet Insurance U receives compensation from the third parties included on this site. This includes payment for clicks from our site to insurance providers’ sites and quote requests generated. Our rankings and reviews are not affected by payments from the insurance companies. The compensation we receive allows the site to be free and regularly updated. Our goal is to review every pet insurance provider, but not all companies are listed on the site.
And many of the companies we review do not pay us anything. We simply rate, compare and review their plan because we feel it will be valuable to you. Our reviews are guaranteed to be unbiased, professional and advertising compensation does not influence rankings.
On This Page
Pet insurance can be very helpful to cover any illness or condition that your cat or dog might encounter.
However, navigating through the policies can be very difficult and even confusing.
You need to decide on the type of coverage, which deduction to choose, reimbursement levels and the list goes on!
One of the more important decisions to make is choosing the right benefit limit.
What are benefit limits, you might ask? And how does pet insurance work?
Benefit limits are essentially the total amount that the pet insurance company in which you enroll will reimburse you either annually or for your pet’s lifetime.
Related: 10 Things You Must Know Before You Buy Pet Insurance
It seems simple enough. Not so fast.
In fact, there are several different types of benefit limits to choose from and each pet insurance company offers different limits and levels.
Some companies offer annual benefit limits while others offer per condition.
With the costs of veterinary treatment escalating, it is not uncommon for a vet bill to cost more than $25,000 if your dog or cat needs serious medical care or even an overnight hospital stay.
For example, if your dog gets cancer, the medical bills will add up quickly.
And you want to choose a benefit limit that will allow you to have continual treatment for the duration of your dogs’ life.
This is an example of when an unlimited lifetime benefit level would be the best choice.
Need Pet Insurance?
FACT: Pet insurance pays up to 90% of vet bills when your pet is sick or injured!
Four Different Types of Benefit Levels Offered
#1 – Unlimited Lifetime Benefits
This is always the safest choice since you don’t know what can happen in any calendar year to your dog or cat, let alone their lifetime!
With unlimited lifetime benefits, you have the security of knowing that if your cat has kidney disease or your dog becomes diabetic, you can afford the treatment for the duration of your dog’s life.
Healthy Paws, for example, offers unlimited lifetime benefits in all of their plans which is why we always recommend them.
#2 – Annual Maximum Benefits
Some companies will set an annual limit at $25,000 to $50,000 which seems like a hefty amount but you want to make sure that no matter what happens, you have the means to cover the vet bills.
The upside of an annual maximum benefit level is that (in some plans) the monthly premiums tend to be lower.
Therefore, you can decide if your pet is young and healthy, an annual maximum might be OK, but as we know, all it takes is one accident!
Real Cost Savings from PetFirst Clients
Luna
PetFirst saved his parents
$6,712
A happy energetic Luna one morning couldn’t hold her food down. After months of multiple costly vet visits to specialists and an endoscopy, the problem was discovered and fixed. Luna put 22 pounds back on in no time and her parents were grateful for having PetFirst by their side to pay the bills.
#3 – Annual Per Incident (or Occurrence)
If your cat or dog has two separate illnesses or injuries in a calendar year, the company specifies the limit for each condition.
So you will have two different limits which can get expensive, not to mention confusing.
#4 – Lifetime Maximum
A lifetime maximum can be either per condition or just the total amount.
If your pet has a chronic illness, you could be paying a lot out of pocket for a serious illness.
Now that you understand the different benefit levels offered, you can think about what would be the best for your pet.
As always, your veterinarian is a great place to start to see if your pet is predisposed to any hereditary or congenital conditions or what you might need to spend in any calendar year.
Read the fine print and make sure you know what your plan covers.
If you don’t understand anything, always call the pet insurance company and make sure they can help answer your questions. If not, then onto the next.
If you are looking for a new pet insurance policy, our top 10 of 2019 is a great place to start!
Other articles you may find helpful:
Is Exotic Pet Insurance Necessary?
The Best Pet Insurance By State
Fun Facts, Dog FAQ, And Unsolicited Dog Advice
5 Training Commands to Save Your Dog’s Life
The Ultimate Guide to Safe Foods for Dogs
Pet insurance is similar to other insurances but does have some major differences as compared to your health insurance. Below you will find a definitive list of frequently asked pet insurance questions to help in your decision.
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Comprehensive Pet Insurance Explained
Insurance vs. Wellness Pet Insurance Plans
Is Pet Dental Insurance Worth the Extra Cost
Best Pet Insurance Plans with Shortest Waiting Periods
Pet Insurance Coverage Exclusions and Limits
Pet Insurance Benefit Limits Explained
How to Make a Claim on your Pet Insurance
Is my Pet too Old for Pet Insurance Coverage
Top Reasons to Purchase Pet Insurance
How much does Pet Insurance Cost
Pet Insurance for Multiple Pets
Pet Insurance that Covers Spaying and Neutering
Does Pet Insurance Cover Shots
Pet Insurance with Pre-Existing Conditions
Frequently Asked Questions
What does “Secured with SHA-256 Encryption” mean?
This statement indicates that the website uses secure encryption technology (SHA-256) to protect user data and ensure a secure browsing experience.
Who is Melanie Musson, the Published Insurance Expert?
Melanie Musson is a fourth-generation insurance professional with expertise in state-specific car insurance laws, dynamics, and a broad understanding of how insurance fits into individuals’ lives.
Who is Michelle Robbins, the Licensed Insurance Agent?
Michelle Robbins is a licensed insurance agent with over 13 years of experience. She began her career in the real estate industry, supporting local realtors with Title Insurance, and later shifted to real estate home warranty insurance.
What is the purpose of the Advertiser Disclosure on the page?
The Advertiser Disclosure discloses that Pet Insurance U receives compensation from third parties, including insurance providers. The compensation helps keep the site free and regularly updated, and it does not influence the rankings or reviews provided.
What are Benefit Limits in pet insurance?
Benefit limits refer to the total amount that a pet insurance company will reimburse either annually or over the pet’s lifetime. This is a crucial factor to consider when choosing a pet insurance plan.
What are the Four Different Types of Benefit Levels Offered?
The four types are:
- Unlimited Lifetime Benefits
- Annual Maximum Benefits
- Annual Per Incident (or Occurrence)
- Lifetime Maximum
What is the significance of Unlimited Lifetime Benefits in pet insurance?
Unlimited Lifetime Benefits provide security by covering the cost of treatment for the duration of the pet’s life, making it a safe choice for unforeseen health issues.
What is the purpose of Annual Maximum Benefits?
Annual Maximum Benefits set a limit on reimbursements per year, offering a balance between coverage and potentially lower monthly premiums.
What is Annual Per Incident (or Occurrence) in pet insurance?
This type specifies limits for each separate illness or injury that occurs in a calendar year, potentially leading to higher costs and complexity.
What is a Lifetime Maximum in pet insurance?
A Lifetime Maximum can be either per condition or the total amount, potentially resulting in significant out-of-pocket expenses for chronic illnesses.
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Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with Title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
We are a free online resource for anyone interested in learning more about pet insurance. Our goal is to be an objective, third-party resource for everything pet insurance related. We update our site regularly, and all content is reviewed by pet insurance experts.