My pet insurance policy mentions a limit (or cap) on benefits. What does that mean?
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Some pet insurance policies will limit the amount paid in claims for your pet. (There are also policies with no limits). Generally, there are five different types of limits on payouts:
A word of caution here: we don't recommend policies that have a maximum payout per body system or based on a schedule of benefits. We think these types of limits shortchange pet owners. They're also confusing, so it's difficult to understand what you're buying (which often leads to unhappy pet owners when they file a claim). We're also not fans of policies with maximum payouts per incident. An incident could be a single life-threatening event (e.g., cancer or a car accident) that requires expensive, lifesaving care. A per-incident limit is typically lower than an annual or lifetime limit…so the per-incident limit might actually defeat the purpose of pet insurance, which is to allow you to make decisions about lifesaving care without worrying about the cost.
On the other types of payout limits - annual and lifetime - we think they're totally fine as long as they're high enough to cover a worst case scenario (which can run upwards of $20,000 for certain conditions). There are also plans with no limits on payouts. These plans provide the greatest peace of mind (and are still reasonably priced).
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