Our view or opinions of an outcome often retroactively determine the merits of the decisions we make. Deftly diving out of the way of a speeding car would logically seem to be a smart decision. Landing in the way of another oncoming car, in retrospect, takes smart out of the equation.
Both outcomes resulted from the exact same choice; to dive out of the way of certain death. But in evaluating the results, the first scenario seems to be the product of a smart decision while the second outcome resulted from what seems to be a decidedly bad choice. But does that mean that random fate determines the merits of our decisions in life? Couldn't one say the decision was smart regardless and the outcome simply unfortunate in the latter case?
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 me if I'd bite on an offer of $5 million, to be paid out in a week, if the initial investment was just $5 for a lottery ticket. Without pause, I reached for my wallet and told him to go fetch the ticket.
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.
But this isn't about investing or lottery or even dodging traffic. The objective here is weigh the value of purchasing health insurance for your pet. If you've been considering it, you don't need me to tell you that the decision can often be a difficult one.
As with the example of an investment vs. a lottery ticket, we struggle to make a smart decision when it comes to pet health insurance because we're considering an investment in an unknown potential outcome. How will we feel spending hundreds of dollars each year if our pet never requires a costly medical procedure and, instead, dies peacefully of old age? Won't we have made a bad decision and wasted our money?
On the opposite side of the coin, emotions prevail. What if we don't purchase the insurance and wind up unable to afford to pay for an emergency? Will that mean we didn't love our pet enough? 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.
The emotional approach is no better and, in fact, can blind you to important realities. All the love in the world won't change your financial position if you can't afford the monthly expense for pet insurance. I'd dearly love to buy controlling interest in Microsoft. That passion doesn't translate to the financial ability to do so. Nor does the lack of finances mean you love your pet any less.
The decision of whether or not to purchase pet health insurance requires a rational approach. Examine the facts. If your pet should require an unexpected and expensive procedure, could you cover the costs out of pocket? Keep in mind this could cost you thousands of dollars. If you earn a good living or have a particularly robust savings account (and are good at not dipping into it) the there may be no point in getting insurance.
Is your pet very young and healthy? If so, and particularly if you're relatively comfortable financially, then perhaps the choice to purchase pet insurance can be postponed until later in your pet's life.
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.
The bottom line is that you should take the time to honestly assess the facts. Do your research, consider your cash position and make the choice based on what makes sound financial sense. Leave the excitement and emotional highs and lows to day traders.
Both outcomes resulted from the exact same choice; to dive out of the way of certain death. But in evaluating the results, the first scenario seems to be the product of a smart decision while the second outcome resulted from what seems to be a decidedly bad choice. But does that mean that random fate determines the merits of our decisions in life? Couldn't one say the decision was smart regardless and the outcome simply unfortunate in the latter case?
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 me if I'd bite on an offer of $5 million, to be paid out in a week, if the initial investment was just $5 for a lottery ticket. Without pause, I reached for my wallet and told him to go fetch the ticket.
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.
But this isn't about investing or lottery or even dodging traffic. The objective here is weigh the value of purchasing health insurance for your pet. If you've been considering it, you don't need me to tell you that the decision can often be a difficult one.
As with the example of an investment vs. a lottery ticket, we struggle to make a smart decision when it comes to pet health insurance because we're considering an investment in an unknown potential outcome. How will we feel spending hundreds of dollars each year if our pet never requires a costly medical procedure and, instead, dies peacefully of old age? Won't we have made a bad decision and wasted our money?
On the opposite side of the coin, emotions prevail. What if we don't purchase the insurance and wind up unable to afford to pay for an emergency? Will that mean we didn't love our pet enough? 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.
The emotional approach is no better and, in fact, can blind you to important realities. All the love in the world won't change your financial position if you can't afford the monthly expense for pet insurance. I'd dearly love to buy controlling interest in Microsoft. That passion doesn't translate to the financial ability to do so. Nor does the lack of finances mean you love your pet any less.
The decision of whether or not to purchase pet health insurance requires a rational approach. Examine the facts. If your pet should require an unexpected and expensive procedure, could you cover the costs out of pocket? Keep in mind this could cost you thousands of dollars. If you earn a good living or have a particularly robust savings account (and are good at not dipping into it) the there may be no point in getting insurance.
Is your pet very young and healthy? If so, and particularly if you're relatively comfortable financially, then perhaps the choice to purchase pet insurance can be postponed until later in your pet's life.
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.
The bottom line is that you should take the time to honestly assess the facts. Do your research, consider your cash position and make the choice based on what makes sound financial sense. Leave the excitement and emotional highs and lows to day traders.
About the Author:
Karsten brings 20 years of veterinary and pet care experience to helping you with your pet medical insurance decisions. He is a consultant and contributing writer for www.veterinarypetinsuranceguide.com, a blog devoted to examining vet pet insurance providers and pet health issues.
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