Few things in life are more frightening than the thought of a family member facing a serious accident or an unexpected illness. For millions of Americans, pets are among that list of family members.

We do love our animals. According to the American Pet Products Manufacturer's Association, we will spend about $43.4 billion on our pets this year, with $11 billion being spent on veterinary care.

With sophisticated procedures and devices now being used on animals, Fido's trip to the vet is almost as expensive s your trip to the doctor. That's why more folks are turning to pet insurance to help pay these bills.

Pet Insurance 101

We talked at length about whether pet insurance was the way to go with our dear friend Warren Eckstein, one of America's most respected pet experts. Warren acknowledges that, just as with human medicine, the advances in veterinary medicine in the last few decades have been astonishing. But increased progress results in increased price. The skyrocketing bills for pet medicine have made it tougher to give our furry friends the care they need (and deserve!).

For example, pets routinely require MRIs, CAT scans (no pun intended) and chemotherapy (the University of Missouri estimates that 60% of dogs over the age of six will be diagnosed with some form of cancer), which can run into the hundreds if not thousands of dollars. In fact, one of our Dolan team members recently received a $2,000 estimate for an operation for her pet.

Holy Beagle, Batman!

With so much money being spent on pet care, it's no surprise that insurance companies are leaping (off all four legs) at the opportunity to take pet owners' money. But hold on. Pet insurance is not necessarily the easy answer. There are many factors to consider, such as co-pays, caps on coverage, deductibles and limits as to how much a pet insurance plan pay out for Fluffy or Spike on an annual basis.

Dolan Straight Talk Tip: Our suggestion, generally, is to put aside the equivalent of pet insurance premiums (about $300 a year) to cover unexpected pet health care costs. That said, we know it's hard to replace the comfort of a good insurance plan. The trouble is, just like humans, the pets that need the most coverage have a tougher time getting insurance (some companies won't insure dogs over nine years old and preexisting conditions are generally excluded from plans).

Next: Ask Yourself These Key Questions

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