Is Pet Insurance Worth It? What I Did Instead.
📌 Note: I’m not an EQ Bank affiliate, but I hope to be soon. I genuinely use and recommend EQ Bank based on my own experience. If I receive a referral link later on, I’ll update this post. I’d love it if you use it to support the blog at no extra cost to you.
Dear Pet Mom,
One of the most common questions I get as a pet parent is whether pet insurance is worth it, especially for indoor cats. Before caring for my three cats, this was one of the first financial decisions I had to make.
Read here: Budgeting for a Cat (Monthly and Annual Costs) →
I am someone who likes to be prepared for life’s surprises. Emergencies, sudden illness, or even economic uncertainty are things we hope we never face, but still need to plan for. When it came to ensuring I was ready for any medical or urgent situation concerning my cats, I carefully weighed two options: getting pet insurance or building a dedicated emergency savings account just for them.
Comparing the Options
Here is what I discovered based on my own experience:
Pet Insurance
What I liked:
Provides peace of mind knowing that unexpected vet bills may be covered
Some plans include coverage for chronic illnesses or recurring conditions
Allows you to spread out costs through monthly payments
What concerned me:
Monthly premiums can add up quickly, even if you never file a claim
Many plans do not cover pre-existing conditions or certain types of care
Claims may be denied or reimbursed only partially
In the long run, I might end up paying more in premiums than I actually need
Emergency Fund for Pets
What I liked:
Full control over the funds and how they are used
No need to wait for claim approvals or deal with exclusions
If no emergency happens, the money is still mine and can continue to grow
What to consider:
Requires a consistent habit of setting money aside
If an emergency happens early on, the fund may not be large enough yet
Why We Chose an Emergency Account Instead
My husband and I decided that it made more sense for us to manage a dedicated emergency fund instead of signing up for pet insurance. These were our main reasons:
We were already maintaining an emergency fund for our household that covered six months of living expenses. Creating a separate savings bucket for our pets did not require a huge shift in our habits.
With insurance, there is always a chance we would not need it. In that case, the money spent on premiums would have been lost.
Instead, we liked the idea that an emergency account could stay with us and earn interest while remaining accessible if we ever needed it.
Who is EQ Bank?
EQ Bank is the digital banking platform of Equitable Bank. Equitable Bank, also known as Canada's Challenger Bank™, is a Schedule I bank and a wholly-owned subsidiary of EQB Inc. It was founded in 1970 as The Equitable Trust Company and has grown to become the seventh-largest bank in Canada.
Unlike traditional brick-and-mortar banks, EQ Bank operates entirely online. Because they do not have physical branches to maintain, their operating costs are significantly lower. This allows them to pass on more value to customers in the form of higher interest rates on savings accounts and other deposit products.
Why We Chose EQ Bank
When choosing a bank to hold our emergency savings, we looked for one that could help us grow our money with minimal risk. EQ Bank stood out for several reasons:
Competitive Interest Rate: At the time we opened the account, EQ Bank was offering 3.5 percent interest. This was much higher than what traditional banks were offering on savings accounts, which can be vary between 0.01 % to 0.75%
User-Friendly App: The EQ Bank mobile app is simple, clean, and easy to use. I appreciate a smooth digital experience, especially when it comes to managing money.
Account Buckets: Within one EQ Bank account, I can create up to five separate savings buckets. This makes it easy for me to organize funds. I have a “Pet Emergency” bucket, a “Bills” bucket, and even a “Fun Fund,” all visible in one place.
Responsive Customer Support: On the few occasions I needed to call them, I was pleasantly surprised that I could speak with a real person within minutes. That level of service gave me confidence in banking with them.
Final Thoughts
EQ Bank has been a reliable and practical financial partner for our family for over two years now. It is where we keep our pet emergency fund - not as a way to invest or grow wealth aggressively, but as a simple, safe place to be prepared.
A gentle reminder: An emergency fund is not the same as an investment fund. If your goal is to grow your money long-term or to beat inflation, you may want to look into options such as ETFs, stocks, real estate, and other investment vehicles.
And of course, this is what worked for us. Every pet parent has different circumstances, so take the time to consider what fits your lifestyle best.
What about you?
Would you prefer the peace of mind that comes with pet insurance, or the flexibility of managing your own pet emergency fund? I would love to hear what works for you.
