If affordability is more important to you than extensive coverage, or if you’re looking for a “just in case disaster strikes” plan, PHI Direct’s “fluff-free” pet health insurance has a unique way to save big on your monthly premiums. PHI Direct scored points for offering the cheapest monthly premiums of all the 12 Canadian pet insurance companies surveyed by Forbes Advisor Canada. It also offers a 24/7 Telehealth support hotline for worried pet parents. However, there’s a tradeoff: PHI Direct has a unique Time-Limited Coverage policy feature where you’ll receive coverage for up to one year for any eligible accident or illness, but after that the condition is no longer eligible for coverage moving forward. There’s also a longer list of exclusions compared to other more expensive plans.
Pros
- Cheapest monthly premium of the 12 Canadian pet insurers surveyed
- 24/7 Telehealth support hotline
- No age-based deductible applied as your pet gets older
- Two simple plan options
- 5% multi-pet discount
Cons
- Time-limited coverage where an accident/illness is covered for up to one year and then becomes a pre-existing condition
- Long list of exclusions compared to other plans
- Minimum deductible is $200 compared to $100 for other plans
- Maximum of $10,000 coverage
- Not currently available in Quebec
Table of Contents
- What Does PHI Direct Cover?
- PHI Direct Extra Coverage Options
- What PHI Direct Doesn’t Cover
- PHI Direct Pet Insurance Waiting Periods
- Compare PHI Direct With Other Insurers
- PHI Direct Pet Insurance Coverage Levels
- Sample Quote for Five-Year-Old Male Labrador Retriever Based in Toronto (as of February 2023)
- PHI Direct Discounts
- About PHI Direct
- PHI Direct Partners
- Methodology
What Does PHI Direct Cover?
PHI Direct offers coverage for unexpected illnesses and injuries under two simple plans and includes:
- Accidents
- Alternative therapies
- Anaesthesia and surgery
- Behavioural therapy
- Breed-specific conditions
- Coverage while travelling
- Dental tooth fracture
- Diagnostics, including blood work and urinalysis
- Emergency care
- Exam fees
- Hospitalisation
- New illnesses
- Imaging, including CT scans, MRI and X-rays
- Medical devices
- Medical procedures
- Prescription medications
- Referral specialist fees
- Parasites
PHI Direct Extra Coverage Options
There are no extra coverage options, riders or add-ons.
What PHI Direct Doesn’t Cover
Like all pet insurance companies, PHI Direct does not cover pre-existing conditions, also called foreseeable conditions, defined as “any condition that starts or shows symptoms, with or without a confirmed diagnosis” prior to enrollment or within any applicable waiting periods.
PHI Direct has unique Time-Limited Coverage meaning that each year upon renewal, coverage for any accidents or illnesses claimed during the policy year becomes a pre-existing condition and is no longer covered going forward.
In addition, PHI Direct does not cover:
- Illness and/or accidents related to known behavioural problems, such as separation anxiety.
- No vaccinations or routine/preventive care coverage or any expenses related to complications from any wellness procedures.
- Corrective surgery for brachycephalic breeds (dogs with a compressed facial structure, such as bulldogs, pugs and boxers).
- Cosmetic procedures such as ear cropping, tail docking, nail trims or grooming.
- Cremation or burial, though euthanasia for an insured condition is covered.
- Dental cleanings or treatment for dental illness or orthodontic care.
- Innovative therapies, including regenerative therapy, stem cell therapy, prolotherapy, platelet-rich plasma therapy, homeopathic care, hyperbaric oxygen therapy, osteopathy and cryonics.
- Spay or neuter surgery.
- Any illness or complications related to pregnancy or whelping.
PHI Direct Pet Insurance Waiting Periods
Pet insurance companies have what’s called a waiting period, which is the amount of time between enrollment and when your policy is effective. After the waiting period ends, you can be reimbursed for claims.
With PHI Direct there is a fairly standard 48-hour waiting period for accidents, and 14 days for illnesses. There is also a 60-day waiting period for cruciate ligament conditions.
Compare PHI Direct With Other Insurers
PHI Direct Pet Insurance Coverage Levels
Maximum annual limit options
Direct 5: $5,000 per year
Direct 10: $10,000 per year
Deductible options
$200
Reimbursement options
80%
Sample Quote for Five-Year-Old Male Labrador Retriever Based in Toronto (as of February 2023)
PHI Direct Discounts
PHI Direct offers a 5% multi-pet discount.
About PHI Direct
Launched in Canada in July 2021, PHI Direct is a new affordable pet health insurance brand that keeps monthly premiums low through its unique Time-Limited Coverage. PHI Direct offers good, basic pet health insurance without all the extra bells and whistles, such as lost pet rewards, zero deductible and 100% co-insurance, that all add to the cost of your premium. Owned by premium pet heath insurer Trupanion, the PHI Direct brand offers the same high value proposition but at a lower price point.
PHI Direct Partners
PHI Direct does not have any external partnerships.
Methodology
To find the best pet insurance we reviewed each company’s policy wording and used data provided by PetInsurer.com to score each pet insurance company based on the following:
Pet insurance rates: 40% of score. We calculated average rates for plans with $5,000 or unlimited coverage, a $100 deductible and an 80% reimbursement level, or the closest options available.
Special waiting period: 10% of score. Many pet insurance companies have a special waiting period for problems such as cruciate ligament issues and hip dysplasia. Plans that had no waiting period, a waiting period of six months or less, or the ability to have the waiting period waived scored higher.
Direct payment to vet: 10% of score. Pet insurance companies that have the ability to pay a vet directly earned points.
24/7 vet health line: 10% of score. Insurers that provide access to a 24/7 vet health line scored in this category.
Routine wellness plans: 10% of score. Insurers that offer wellness plans, either included with a plan or as a rider, earned points.
Dental illness coverage: 10% of score. While most insurers cover dental accidents, not all insurers cover dental illnesses, such as gum disease or cleanings. Plans with more extensive dental coverage scored higher.
Pet ownership assistance: 5% of score. Insurers that include coverage for pet owner expenses, such as advertising and reward for lost pets, boarding for medical emergencies, end of life expenses and/or vacation cancellation, scored in this category.
Any discount: 5% of score. Insurers that offer any kind of discount, including a multi-pet discount, healthy pet discount, loyalty discount, etc., earned points.
Frequently Asked Questions (FAQs)
What is Time-Limited Coverage?
Time-Limited Coverage, a unique policy feature from PHI Direct, covers up to the first 12 months of a new illness or injury, typically when there are higher costs due to the initial diagnosis and treatment. When the policy renews after one year, that condition or illness (as well as any bilateral and associated conditions) becomes a pre-existing condition and is not eligible for coverage moving forward.
An associated condition is any medical condition or complication arising from another condition for which your pet shows signs or symptoms that are directly related to, and caused by, the primary condition. For example, an ear infection may be a secondary symptom, thereby an associated condition, to an allergy.
A bilateral condition is a condition that affects either side of the pet’s body of which there are two; for example, eyes, ears, kidneys, knees, wrists, hocks (ankles), elbows or shoulders. If one body part is affected during a policy year, both would be excluded in coverage going forward.
PHI Direct uses this coverage feature to keep monthly premiums low, on average 45.8% less for dogs, according to the company.
For example, say your pet has a policy that runs from June 1 to May 31. On July 14, your pet is diagnosed with a nasal tumour, a form of cancer. Treatment for this condition, including surgery, chemotherapy, immunotherapy and radiation will be covered until May 31 of the following year (to your plan’s maximum annual coverage limit). After that, any treatment related to that tumour will become a pre-existing condition and therefore, ineligible for coverage. However, if your pet develops a melanoma, a different form of cancer unrelated to the original tumour, that cancer will be covered.
Will PHI Direct pay my veterinarian directly?
According to PHI Direct’s sample policy, if such a payment arrangement is already established between PHI Direct and the treating veterinarian, you may be able to have your claim paid directly. To request that PHI Direct pay its portion of the claim to the veterinarian directly, you’ll need to complete a required preauthorization form, which is available on the PHI Direct website.
What is the difference between your reimbursement rate, co-insurance and deductible?
Your reimbursement rate is the percentage amount your pet insurance company will pay you back for eligible expenses you claim under your pet’s policy. Most insurance companies offer a reimbursement rate of between 70% and 90%. Your co-insurance is the amount you are responsible for paying. Your deductible is the amount you must pay each year before your coverage kicks in. Your deductible renews each year and the deductible must be met before you receive any reimbursement. The amount you are reimbursed is net of any co-insurance and deductible.
For example, say you are given a veterinary bill for $500. Your policy’s reimbursement rate is 80% and your deductible is $100. You will pay $200 and be reimbursed for $300. ($500 bill – $100 or 20% of the bill – $100 deductible.) Later in the year, you’re given a second veterinary bill for $500. This time you will only pay $100, and be reimbursed for $400, because the deductible has already been met. However, say your first veterinary bill is only $85 for an eligible expense. You will need to pay the entire amount, and still have $15 outstanding until your original $100 deductible is fully paid.
How much pet insurance coverage do I need?
It depends on your pet’s breed, its proclivity for developing a chronic or hereditary disease and how much risk you want to take, or put differently, how much protection you want. It’s important to understand that the more coverage you have, the more expensive your monthly premiums will be. For example, Trupanion offers unlimited coverage with a 90% reimbursement rate and your choice of deductible between $0 and $1,000. It’s impressive coverage, but also the most expensive. PHI Direct only overs $5,000 or $10,000 coverage without any dental illness coverage, wellness options or pet ownership assistance benefits (such as lost pet advertising or kenneling in case you get sick), but if your pet is diagnosed with a moderate case of gastroenteritis and you’re faced with a $1,000 vet bill, that lower level of coverage will insulate your bank account from an unexpected vet bill that you would otherwise pay out of pocket. What’s more, according to PHI Direct, 99% of eligible claim reimbursements are $10,000 or less, based on two years of actual claims processed.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
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