Pet Insurance vs. Savings Account: How To Plan for Vet Costs

Both pet insurance and savings accounts could help you pay for vet bills. Pet insurance can reimburse you for covered costs, which could mean saving on vet bills, but you have to pay the bill up front.¹ Money from savings accounts can be used to pay a vet bill up front, but it can’t help you save on the overall expense. Plus, you have to build that savings back on your own.

Read through our guide on the differences between these two financial tools so you can manage your pet’s expenses in ways that work best for you.

Pet Insurance and How It Works

Pet insurance can offer financial protection — especially for large, unexpected vet bills — through reimbursements on covered pet expenses.¹ Generally, pet insurance works in the following way:

1. Choose your provider and enroll your pet in a policy. Keep paying your premium so your coverage remains active.
2. Take your pet to any licensed veterinarian when they need care.
3. Pay the bill at the time of your pet’s vet visit.
4. Submit a claim for the vet bill, and include the itemized invoice and required medical records.
5. Get money back on covered expenses through your preferred reimbursement method.¹

You might have a deductible to meet before your provider starts reimbursing you for covered costs.^1,2 You’ll also need to be aware of any exclusions or limitations to your coverage — like pre-existing conditions, reimbursement limits, or waiting periods.

Savings Accounts and How They Work

Savings accounts are accounts you can open at a bank or credit union to store money. You can also transfer, withdraw, or deposit money into or out of the account, though there may be limitations on how often you can make withdrawals.³

Certain savings accounts may have monthly fees or minimum balance requirements and typically earn interest on the money, usually at a low interest rate. Any interest earned over $10 is considered taxable income.³

You get to choose how much money you put in your savings account and how often, as well as how you use the money. You might set up automatic deposits or add money when you can, and decide to use the account as an emergency fund for living expenses, to save up for a big trip, or even as a fund for unexpected pet costs.

Pet savings accounts

A pet savings account is simply a savings account you’ve designated as a fund for certain pet expenses. You might be limited in how often you can withdraw money from your account.³ For this reason, it can be a good idea to use a pet savings account for emergencies or unexpected expenses — not smaller, regular costs.

Pet Insurance vs. Pet Savings Accounts: The Differences

Knowing potential benefits and drawbacks could help you see which option makes sense for your situation. So let’s dig into some of the differences between a pet savings account and a pet insurance policy.

• The cost to have one: You pay a monthly premium to keep your pet insurance active, and you might also have a deductible to meet.² Savings accounts typically don’t require monthly payments to keep them open, but there may be a minimum balance required to avoid a monthly fee. You’ll also need to fund the savings account yourself.³
• What you can use them for: Since the money in a savings account is yours, you can use it to pay for whatever pet costs you want. Pet insurance only reimburses you for costs covered by your policy.¹
• When you use them: With pet insurance, you’re responsible for paying the vet bill at the time of the visit, which could be partially reimbursed after.¹ The money in a savings account can be used to pay vet bills up front, but you’ll need to build your savings back up after.
• Limits: Pet insurance typically has limits on how much money you can be reimbursed, such as an annual limit.^1,4 Generally, there aren’t any limits as to how much money you can deposit in a savings account, and you can withdraw up to the amount of money you have in it. But there may be limits to how often you can withdraw money.³

Savings accounts can help you manage pet expenses by using the money to pay any kind of vet bill or pet expense up front. But you’re limited to how much money you can put into the account and how quickly you can do it.

Pet insurance can help you manage pet expenses by reimbursing you for covered vet bills.¹ This could reduce the overall amount of money you’re spending on these bills compared to a savings account and might make pet insurance worth it for you.

When Is Having a Savings Account for Vet Bills a Good Idea?

Savings accounts can be a good way to prepare for pet emergencies or fund a higher-than-expected vet bill. Let’s discuss when it may be helpful to have one.

For emergencies or unexpected vet bills

Money in a savings account can be withdrawn to help you pay for care at the time of a pet emergency. It can also be withdrawn to help you pay for unexpected vet bills in a non-emergency situation — like if your pet gets diagnostics and treatment during an office visit that ends up costing a pretty penny.

While pet insurance can reimburse you for covered costs related to pet emergency care and unexpected vet visits, you’ll need the funds to pay the bill up front.¹ Money you’ve set aside in a savings account can help you in these situations.

For large, expected vet bills

Large vet bills aren’t always unexpected. If your vet recommends scheduling a high-cost surgery at a later date or you anticipate your pet needing a teeth cleaning later in the year, money from a savings account could help you pay for them.

Using your savings account in this way is like using it to fund a planned vacation. It can also be helpful if your pet receives care for an expensive chronic condition not covered by a pet insurance policy.

When you can budget for one

Having a savings account can be nice to fall back on when you need it, but you’re the one who has to fund it. If you have room in your budget to put money away — whether it’s a set amount each month or various amounts wherever you can — a savings account could be beneficial in managing pet expenses.

If you’re not easily able to set aside money or don’t foresee being able to build up a substantial amount, you might want to look for another way to manage vet bills.

If you also have pet insurance

Savings account funds can help you pay vet bills up front. But when you use those funds, you’re responsible for adding money back into your account to be used again. If your pet is enrolled in a pet insurance policy, you can put money from reimbursements back in your savings account.¹

You may benefit from having both a dedicated pet savings account and a pet insurance policy if your pet goes to the vet a lot or requires costly, ongoing care for expenses covered by their insurance policy.

Benefits of Choosing MetLife Pet Insurance

Besides helping you put money back in your pocket, enrolling in a pet insurance policy has benefits that could outweigh having just a savings account.

• Potentially bigger safety net: Savings accounts could take a long time to build. One high-cost vet bill could deplete those funds, leaving your finances more vulnerable to a future vet bill. When purchasing a pet insurance policy, you may be able to choose an annual reimbursement limit that leaves you less vulnerable to multiple expensive vet bills.⁴
• Long-term protection: What you can contribute to a savings account may change over time. You might not be able to set aside as much money in 5 years as you can now. Purchasing a pet insurance policy, and keeping your pet enrolled, can provide financial protection for future vet bills when a savings account may not.
• Dedicated coverage: Pet insurance can be a part of your financial plan that’s completely dedicated to helping you with pet expenses. While you may set aside funds in a savings account for your pet, if an emergency or unexpected expense arises in another area of your life, you might need to use that money to assist there.
• Money back on routine costs, too: Yes, savings account funds could be used for routine pet costs, but you won’t save money on them. With an optional Preventive Care plan add-on, you could get reimbursed for covered routine and wellness expenses up to your selected benefit limit.

When comparing MetLife Pet to another provider, some of the benefits include: Our unique Family Plan⁵ that lets you combine up to three pets on one policy with a shared deductible, a 0-day waiting period on accidents and Preventive Care benefits, a 24/7 vet chat⁶ (included in your coverage), and grief counseling⁷ to help you after the loss of your furry family.

Savings stories from MetLife Pet policyholders

The unexpected nature of a vet bill shouldn’t have to dictate whether you can get your pet the care they need. These pet parents were able to focus on taking care of their pet rather than worrying about the cost:⁸

Stitch, a puppy from Arizona, was diagnosed with hip dysplasia. Because he’s young and surgery could help prevent the condition from getting worse, his family decided to schedule it. The surgery cost around $11,200. MetLife Pet reimbursed Stitch’s family over $9,800.

Diana, a 6-year-old dog from Michigan, was taken to the vet with stomach issues. Her vet diagnosed her with an abdominal abscess that was causing gastroenteritis. The vet visit cost around $6,500, and Diana’s family was reimbursed more than $5,000.

Pop, a cat from Colorado, constantly meowed for his next meal. When his family noticed his sudden lack of interest in food, to the point of eating very little, they brought him to the vet for a check-up. The vet bill totaled more than $3,200, and MetLife Pet reimbursed over $2,900.

Pet Insurance or a Savings Account: The Bottom Line

When it comes down to it, compare the pros and cons of having pet insurance or a savings account to see which option works best for you. Are you able to pay vet bills up front but want to use pet insurance to put money back in your wallet? Do you think you could reasonably save up enough money to cover unexpected vet bills, and how long would it take you to do it?

A well-thought-out financial plan can help you reduce stress around ensuring your pet gets necessary care when the time comes. See what your personalized rate might be for a customized MetLife Pet plan by getting a free quote today.