Just be careful on the cancellation of the insurance policy. Depending on the policy term and how much she has already paid into it, she may not get back as much money as expected. Sometimes, if insurance is canceled at the request of the policyholder, it can be short-rated, which basically means they are going to keep something extra for their trouble. I've been out of the insurance business for a long time, so I don't know how common this still is.

Ideally, she has a policy that she simply pays for on a monthly basis, and when she stops paying (or requests cancellation), the coverage stops, but if she's paid in advance for a longer term and she wants to cancel it now, she should find out from the company how much of her money she will get back. You want any refund to be pro-rated, not short-rated.

I'm not totally against pet health insurance. I'm sure there are situations where people are very glad they have it. But insurance companies are for-profit entities, and the way they make profits is that almost everybody pays more into it than they get out of it. If you're one of the ones who has a claim, though, you might be glad you have it. In your friend's shoes, I would have to make my decision based on my dog's current health conditions, what type of coverage the policy provides, and what type of things it excludes. Without knowing all of that, it's hard for me to have an opinion in this particular situation.

Just my own feeling, but in spite of having a dog who has had more than his share of health issues over the years (and wishing on occasion that I did have insurance), I probably still will not purchase it on any future dogs.